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04/02/2010
Murphy Dives Into Water Funding Row
There has been a dramatic intervention into proposed cost cutting at NI's main water provider.
Just hours after the Utility Regulator - an independent body which regulates water and sewerage services - targeted revenue savings of £91m at the statutory body, NI Water, the Stormont Regional Development Minister Conor Murphy (pictured) has stepped-in.
He said last night that he had "noted the Utility Regulator's advice on water funding".
"I intend to study the Regulator's advice carefully before taking final decisions on the level of subsidy required by NI Water (NIW) and putting proposals to the Executive.
"I offer my assurance that decisions on these issues will be taken in the best long-term interests of consumers," he said, also highlighting the economy, the protection of jobs and front line services to customers as priorities.
The Minister said the Stormont Executive would take decisions on future funding for water and sewerage services taking account of the need to deliver services to customers; investment to modernise infrastructure; the effect on the economy and the Executive's budget and the need for NIW to become more efficient.
Commenting specifically on the efficiency targets proposed by the Regulator, the Minister said: "NIW is in transition and we need to be realistic about what can be achieved.
Going directly counter to what the regulator said yesterday, when he compared NIW to the kind of savings being achieved by mainland UK water providers.
"Regulated companies in England have achieved efficiency targets, with 20 years of investment behind them.
"The Executive has yet to decide whether to move to full regulation. What is important is that households will not pay any additional contributions next year as a result of the Executive's funding decision.
"Ensuring there is adequate funding for essential water services, given the difficult winter we have experienced, needs to be the Executive's priority," he concluded.
See: NI Water Funding 'Tap Turned Off'
(BMcC/GK)
Just hours after the Utility Regulator - an independent body which regulates water and sewerage services - targeted revenue savings of £91m at the statutory body, NI Water, the Stormont Regional Development Minister Conor Murphy (pictured) has stepped-in.
He said last night that he had "noted the Utility Regulator's advice on water funding".
"I intend to study the Regulator's advice carefully before taking final decisions on the level of subsidy required by NI Water (NIW) and putting proposals to the Executive.
"I offer my assurance that decisions on these issues will be taken in the best long-term interests of consumers," he said, also highlighting the economy, the protection of jobs and front line services to customers as priorities.
The Minister said the Stormont Executive would take decisions on future funding for water and sewerage services taking account of the need to deliver services to customers; investment to modernise infrastructure; the effect on the economy and the Executive's budget and the need for NIW to become more efficient.
Commenting specifically on the efficiency targets proposed by the Regulator, the Minister said: "NIW is in transition and we need to be realistic about what can be achieved.
Going directly counter to what the regulator said yesterday, when he compared NIW to the kind of savings being achieved by mainland UK water providers.
"Regulated companies in England have achieved efficiency targets, with 20 years of investment behind them.
"The Executive has yet to decide whether to move to full regulation. What is important is that households will not pay any additional contributions next year as a result of the Executive's funding decision.
"Ensuring there is adequate funding for essential water services, given the difficult winter we have experienced, needs to be the Executive's priority," he concluded.
See: NI Water Funding 'Tap Turned Off'
(BMcC/GK)
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
