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NI Water costs still 'too high' | NI Water costs still 'too high' |
(30 minutes later) | |
People in Northern Ireland are paying too much for their water, a Stormont assembly member has said. | People in Northern Ireland are paying too much for their water, a Stormont assembly member has said. |
The SDLP's Tommy Gallagher welcomed a ruling that Northern Ireland Water should cut its spending plans by £135m. | |
Mr Gallagher, who sits on the Regional Development Committee, said there was a legacy of underinvestment in water but the cut was "good news" for consumers. | Mr Gallagher, who sits on the Regional Development Committee, said there was a legacy of underinvestment in water but the cut was "good news" for consumers. |
"The reason is not hard to find - 30 years of underinvestment in water and sewerage infrastructure," he said. | "The reason is not hard to find - 30 years of underinvestment in water and sewerage infrastructure," he said. |
"This was the legacy left to our devolved institutions by direct rule." | "This was the legacy left to our devolved institutions by direct rule." |
Northern Ireland Water has been told it must cut its spending plans by £135m as part of an interim recommendation from the regulator after studying NI Water's business plan for 2010-2013. | Northern Ireland Water has been told it must cut its spending plans by £135m as part of an interim recommendation from the regulator after studying NI Water's business plan for 2010-2013. |
Iain Osborne suggested savings of 11% and told the government-owned company more efficiencies are needed. | Iain Osborne suggested savings of 11% and told the government-owned company more efficiencies are needed. |
If water bills were issued to the public, his recommendation would mean lower average household bills. | If water bills were issued to the public, his recommendation would mean lower average household bills. |
Just last month the company said it would spend another £1.5bn upgrading water and sewage systems over the next eight years, subject to approval by the Regulator. | Just last month the company said it would spend another £1.5bn upgrading water and sewage systems over the next eight years, subject to approval by the Regulator. |
Consideration | Consideration |
Mr Osborne said their plans were aimed at consumers receiving value for money in water and sewerage services. | Mr Osborne said their plans were aimed at consumers receiving value for money in water and sewerage services. |
"This would reduce the burden on the public purse and would also reduce the overall bill for Northern Ireland businesses by over £40m. | "This would reduce the burden on the public purse and would also reduce the overall bill for Northern Ireland businesses by over £40m. |
"But this is not just about delivering savings. It is about investing smarter and more efficiently to deliver services that everyone can have confidence in." | "But this is not just about delivering savings. It is about investing smarter and more efficiently to deliver services that everyone can have confidence in." |
NI Water's Chairman Chris Mellor said they were considering the regulator's proposals. | NI Water's Chairman Chris Mellor said they were considering the regulator's proposals. |
"From our initial review of the document it is clear that the regulator is proposing very significant further reductions," he said. | "From our initial review of the document it is clear that the regulator is proposing very significant further reductions," he said. |
"These appear to us to be very challenging indeed. We are not yet in a position to comment on the effects that these proposals would have on the business. | "These appear to us to be very challenging indeed. We are not yet in a position to comment on the effects that these proposals would have on the business. |
"However, the lower level of capital investment may be a concern in the context of the generation of under investment in Northern Ireland's water infrastructure." | "However, the lower level of capital investment may be a concern in the context of the generation of under investment in Northern Ireland's water infrastructure." |