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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 cut its spending plans by £135m. 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.
ConsiderationConsideration
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."