To ask the Minister for Infrastructure to outline whether a comprehensive review of alternative funding arrangements for Northern Ireland Water will be initiated.

Ms Kimmins (The Minister for Infrastructure)

I have previously provided the Assembly with my position on the matter. My Department has already extensively reviewed NI Water's funding model and analysed the opportunities for NI Water in raising additional revenue, operating more efficiently and using financial transactions capital (FTC) and additional borrowing and additional public expenditure funding. My Department has also reviewed alternative water utility company structures across Britain and Ireland for best practice, including mutualisation, which, I know, is a model that seems to have some support here. My predecessor reviewed that work again in 2022 and 2024 for the purpose of evaluating any change of conditions that might merit further opportunities. Given that nothing has changed in the policy of how NI Water receives most of its revenue, which is through domestic subsidy, and the continuing government sponsorship of and accountability for NI Water, there are few additional options to be explored. Any proposal to review NI Water's funding arrangements must satisfy three key tests: will a new structure help to secure long-term investment; can the model service the debt necessary to upgrade the infrastructure at the scale required; and can the model provide assurance in terms of controlling the cost burden on the public? As recently as this month, my officials again reviewed potential models against those three tests, and I am considering that review. For the avoidance of doubt, I will not implement any review that will lead to household water charges on already hard-pressed families; I have reiterated that numerous times in the Chamber and in Committee. A model that takes NI Water out of government control, such as mutualisation, will require the introduction of water charging, no matter how we look at it. I continue to work hard in partnership with the Executive to progress a three-pronged approach to ensure that NI Water remains fit for purpose: working with Executive colleagues to increase investment in waste water; consulting on developer contributions; and securing Executive agreement for the water, flooding and sustainable drainage Bill to be introduced in the Assembly.

Ms Kimmins

As I said, I am considering a review that officials have undertaken. We have done numerous reviews to date and looked at all options, but no one has brought forward an alternative that will not lead to water charges, which I am not prepared to implement. If others want to do so, they should make that clear. My point is this: the funding model that we have is the best one to make sure that we avoid water charges, but we do not have enough investment. That is why the Executive need to continually work together and look at what else we can do to ensure that we continue with that model, ensuring that it is funded properly, and at alternative methods for managing our waste water.

Mrs Erskine

Last month, the Minister announced that a forensic accountant would look at NI Water's finances for 2024-25. It was reported that it would take about six weeks for the forensic accountant to do that work. I note that the terms of reference state that there will be a:

Can the Minister confirm whether the accountant is in place and carrying out the work? How much will it cost the Department? When will the Committee and the Assembly have sight of the report?

Madam Principal Deputy Speaker

Minister, there are three questions in there. It is at your discretion to answer them.

Ms Kimmins

Yes, the accountant is in place, and the work has commenced. As it stands, the work is running on time. I will consider the report when it comes back to me and will share it with the Committee and the Assembly in due course.

Mr Boylan

Does the Minister agree that the experience of privatisation and mutualisation in England and Wales has been a disaster?

Ms Kimmins

We have seen what mutualisation has done, and the Member alluded to what has happened in Wales. Mutualisation does not necessarily deliver the immediate benefits that others may have perceived that it would. We have seen that significant issues remain in the waste water system. Companies are burdened by excessive debt and are having to be bailed out by the Government. For me, that is a red flag. We therefore have to ensure that any system that is put in place here is fit for purpose and continues to deliver for the people whom it serves.

Mr O'Toole

Minister, I am afraid that you are pursuing a straw man argument. You have said that you do not want water charges rather than explain what you will do about water infrastructure in the North. I do not want water charges and nor does my party, but Lough Neagh is turning into an open-air cesspool, we cannot build affordable houses and business is being held back from developing. All those things will continue to be the case, and get worse, if we do not have some form of solution. You do not appear to have one, so can you tell us how we can invest in our water infrastructure if you have ruled everything off the table?

Ms Kimmins

I have made it clear what I am doing. I have pointed out the three things that we are doing specifically, which are working with Executive colleagues, undertaking the developer contributions consultation, which is out at the minute, and introducing legislation. Those three things are very clear. I am, however, glad that the SDLP has now made it clear that it does not want water charges. The SDLP has also not provided an alternative, but I look forward to hearing it.

Mr Stewart

Minister, it is clear that the funding model simply is not working and that, as a result, Northern Ireland Water is currently not fit for purpose. Do you accept that people are paying for water through the rates process? To that end, would you support there being a line in the rates bill to highlight what is specifically for water? Doing so could potentially open up other models for funding Northern Ireland Water.

Ms Kimmins

Our rates bills go towards all our public services, which further strengthens my argument about why we should not impose further bills and costs on households and families at a time when the cost of everything else is going up. We have to improve what we have, but there are ways in which to do that within the remit that we already have.