Minister addresses Assembly on NI Water Goverance Issues

Regional Development Minister Conor Murphy today addressed the Assembly on his proposals to address governance issues in NI Water.

The Minister said: "We need to remind ourselves how essential and basic these services are. The water we drink and the disposal of waste water fundamentally affects our health, our environment and our economic development.

“This was an area already mired in controversy when I took office in May 2007, principally around Direct Rule plans to impose water charges.

“My main aim has been to make sure we addressed the legacy investment issues which we have done by pumping three quarters of a billion pounds into our infrastructure over the last three years. To its credit, NI Water now delivers the best drinking water quality the North has ever enjoyed. We have achieved this without introducing domestic charges for water.

“I will continue to fight for the investment we need and to acknowledge what NI Water has achieved. But we have seen a catalogue of events and governance failures which have made improving these essential services more difficult. The structure I inherited, a GoCo model set up through Direct Rule legislation, is I believe, at odds with public sector provision of water and sewerage services which most people support. I do not believe this legacy has best served the public interest here.

“Extensive legislation is required to establish the new governance arrangements I feel will best deliver these services. This will extend beyond the lifetime of this Assembly and includes for instance the commitments we have given to public consultation and the need to take account of PAC conclusions.

"I will be bringing proposals to the Executive. It is my view that governance arrangements should be based on water and sewerage services being delivered by a body clearly within the public service and subject to public service controls and standards, that it is not set up to introduce separate water charges for households and that it is not set up to be privatised.

“This is my long term aim. In the meantime I must deal with the realities of what it is possible to do in the here and now. Immediately following the publication of the report on procurement failings I agreed a joint DRD/NI Water Action Plan and welcome the actions which have been delivered to date.

“If necessary I will bring forward proposals for legislation which clarifes this position. In particular, I will consider whether there should be a power for me to direct the Company to adopt policies and procedures which reflect public sector disciplines.

“Of course no governance arrangement can rule out all risks but I believe these measures, together with the work of the PAC, will resolve the situation in the interim until longer term solutions can be implemented.”

Notes to editors:

1. All media queries should be directed to the Department for Regional Development Press Office on 028 9054 0817.
2. The full statement is available here.