Calls mount for review of NI Water funding as growth continues to be blocked

SDLP Member of the Legislative Assembly in Northern Ireland, Patsy McGlone, last week called on the executive to commence an independent review of Northern Ireland Water’s funding and governance by September 2026.

He cited in particular the state of the wastewater network and the block it is causing to economic development. “Northern Ireland Water has warned that up to 100 wastewater treatment facilities are at or near capacity, with around 100 areas, including 25 towns, facing development restrictions. NI Water’s own research shows that failing to invest properly could cost the economy 17,300 potential jobs by 2027. New housing projects cannot go ahead because the infrastructure is not in place to support them, which is a direct result of the current governance and funding model. The development of 19,000 homes has been stalled as a result.”

McGlone argued that NI Water’s status as a non-departmental public body means that it is subject to rigid Treasury rules that prevent long-term planning and private capital access. He said the SDLP had been “consistent in calling for an independent review of Northern Ireland Water's funding and governance model to inform decisions on how that crucial utility provider can operate sustainably for everyone's benefit and in an accountable manner” – and that others including the NI Audit Office had called for reviews, but to no avail.

McGlone went on to speak about governance issues at NI Water, including claims brought to him by a whistleblower about procurement processes for minor works. These included: “Poor workmanship, potential fraud, the use of unregistered subcontractors and the use of non-approved subcontractors.” Deloitte had been hired to investigate and had concluded there was no fraud but, McGlone said, “It quickly became apparent to everyone present that the £144,000 that had been spent on Deloitte to conduct a forensic investigation had not dealt with the key issues.”

Responding to a separate question on a similar topic posed by Alliance’s John Blair – whether a comprehensive review of alternative funding arrangements for NI Water will be initiated –infrastructure minister Liz Kimmins said her department had reviewed the question repeatedly already, and was doing so again.

Kimmins pointed out: “Any proposal to review NI Water 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.”

But she added: “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.”