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Water sell-off may begin in 2008 Minister denies water sale plans
(about 14 hours later)
The privatisation or selling off of Northern Ireland's water service could begin in just over 13 months. Northern Ireland Minister David Cairns has denied there is any plan to privatise the water service.
It has been confirmed that the government is considering starting to sell bits of it from 2008 - and they may do it without public consultation. SDLP leader Mark Durkan claimed on Tuesday that the government was considering part-privatising or selling off the water service.
The details were revealed by SDLP leader Mark Durkan during a debate on water by a key parliamentary committee. However, Mr Cairns said any such action would be subject to a new Northern Ireland Assembly.
He told MPs the legislation allowed for the introduction of private sector ownership without any consultation. The minister for Regional Developlment said: "We are not privatising the Water Service.
"We would not have gone to all this time trouble and effort, including legal actions, to bring in a model which was wholly owned by government if we were going to privatise it.
"The fact is, when it passes over to the assembly, as I hope and pray it will on 26 March, any attempts to privatise it will be subject to a triple lock."
However, during a debate on Tuesday on water by a key parliamentary committee, Mr Durkan told MPs that the legislation allowed for the introduction of private sector ownership without any consultation.
"Do honourable friends really think it is sound that you provide for a GoCo (government owned company) - a publicly owned company - and you legislate so that that can actually take on private sector ownership without any public consultation in the future?" he asked."Do honourable friends really think it is sound that you provide for a GoCo (government owned company) - a publicly owned company - and you legislate so that that can actually take on private sector ownership without any public consultation in the future?" he asked.
He said the Treasury wanted a review of whether there would be benefits from greater private sector participation which could conclude that there would be advantages to bringing in a private equity partner, which would mean selling a minority shareholding. 'Treasury pressure'
BBC Northern Ireland special investigations correspondent Mike McKimm said that it seemed under pressure from the Treasury, the administration in Northern Ireland may consider a part-privatisation in 2008. BBC Northern Ireland special investigations correspondent Mike McKimm said that it seemed that, under pressure from the Treasury, the administration in Northern Ireland may consider a part-privatisation in 2008.
"At that stage some shares in the new water company could be sold off - it has also been suggested that no consultation should take place before any sell off of the shares," he said.
"But it is understood that the present secretary of state - Peter Hain - does not want to see water privatised here, it has been described as a 'red line position' for Mr Hain - he simply won't accept it.""But it is understood that the present secretary of state - Peter Hain - does not want to see water privatised here, it has been described as a 'red line position' for Mr Hain - he simply won't accept it."
In a statement the Department for Regional Development said the secretary of state has ruled out privatisation under direct rule and this will be up to the devolved administration to decide.In a statement the Department for Regional Development said the secretary of state has ruled out privatisation under direct rule and this will be up to the devolved administration to decide.
It said that the GoCo to be set up on 1 April, 2007, will be wholly government-owned. It said that the GoCo to be set up on 1 April, 2007, would be wholly government-owned.
"The proposed Water and Sewerage Order provides that the department shall not dispose of securities or rights issued which would result in a change of control of GoCo without the approval of the assembly," it said. Mr Cairns launched a "Water Charges Made Clear" leaflet on Wednesday to explain how future bills would be calculated.
Northern Ireland householders will face an average bill of £300 following the government's decision to press ahead with the introduction of water charges next April. He said that, with phasing, the average water and sewerage bill next April would be around £100.
More than £3bn is being invested to update a crumbling sewerage and leaking water supply system in Northern Ireland and it is the charges which will provide the new government owned water company (go-co) with the income to carry out that work. "We know that over a quarter of all Northern Ireland residents receive benefits that will entitle them to the reduced tariff. This leaflet explains how people can find out if they are entitled to the reduced tariff and what to do if they are not currently claiming benefits they are entitled to," Mr Cairns said.