Government Reiterates Its Commitment To Water Reform

25 September 2006
GOVERNMENT REITERATES ITS COMMITMENT TO WATER REFORM
The Government reiterated its commitment to taking forward reforms to make major improvements in water and sewerage services despite criticism from the Consumer Council.
Legislation which will shortly go to Parliament will provide a framework to improve drinking water, better protect the environment, enhance the ability to sustain economic growth, improve essential services and introduce new protections for customers.
The Government dismissed as scare mongering allegations of soaring charges and lack of protection for customers made by the Consumer Council at a gathering in Stormont today.
Minister David Cairns said:
"Charges will be fair and affordable with over a quarter of all customers receiving automatic assistance with their bills. This is far more generous than anywhere else in the UK and the costs will be borne by Government not other customers.
"Additional measures to phase in charges over three years and peg them to average charges in England and Wales will mean that most people will pay only one or two pounds a week when charges are introduced next April.
"Government cannot guarantee that affordability measures will be dealt with in this way for ever but the legislative framework does not place any time limit on them. Speculation on soaring bills in 2010 is simply scare mongering.
"The policy will be reviewed after three years by which time we are confident that a devolved administration will be in place. It will then be for local ministers to decide how best the policy might be developed to provide protection for those who need it most. "
On consumer protection the Minister said that Government was very surprised that the Council had chosen to take this line. Government officials had worked closely with the Council in developing legislation and in providing the resources the Council had requested to discharge their new responsibilities (Ł0.5 million). In response to the Council's submission on the draft legislation, Ministers had decided to make a number of changes to help meet their concerns.
Statements that the legislation did not protect consumers were utterly without substance. The contrary is the case:

the legislation enshrines rights to water and sewerage services (none at the moment);

places general duties on all concerned to look after consumer interests and especially more vulnerable members of society;

guarantees the provision of information to consumers (none at the moment);

guarantees standards on vital issues like pressure and constancy ( none at the moment);

allows schemes to be made to compensate consumers where standards are not met (no existing provision);

prevents disconnection of water for domestic premises for non-payment of bills (could happen now);

provides for new complaints procedures based on existing utility models;

provides for a much more robust system of enforcement where environmental protection is concerned (currently, enforcement action can't be taken against Government).

Government has also ruled out the privatisation of water and sewerage services in Northern Ireland for the foreseeable future.

Under a devolved administration the proposed Order provides that the Department shall not dispose of securities or rights issued which would result in a change of control of the Government owned company (GoCo) without the approval of the Assembly.
There are many other examples and the list leaves aside the new roles for the regulator and the Council itself.
The Government rejects any suggestion that the measure was being rushed. The Minister said that the reforms had already been delayed a year to take account of concerns on affordability and metering. He appreciated that the introduction of new charges is never popular but they will be a reality.
Playing to the gallery now will not deliver the sustained investment necessary to provide Northern Ireland with world class services. Everyone involved needs to play their part in a responsible and measured way to implement the reforms so that the customer does get the best deal.
NOTES TO EDITORS:
1. Draft water reform legislation was published for public consultation on 1 June for receipt of comments by 24 August. The response of the Consumer Council, and other consultees is available on the DRD Water Reform Website (see below). Around 50 responses were received in total.
2. The legislation:

Provides for the appointment of a company, wholly owned by Government, as a water and sewerage undertaker to deliver water and sewerage services in Northern Ireland;

Establishes a regulatory regime by extending the remit of the current energy regulator (the Northern Ireland Authority for Energy Regulation) and the General Consumer Council for Northern Ireland to oversee the new utility;

Sets out a framework for the levying of charges for water and sewerage services;

Sets out the duties and powers of a water and sewerage undertaker in relation to the provision of those services; and

makes changes to existing environmental legislation dealing with water to accommodate the new arrangements.

3. It is planned to lay the draft Order in Parliament on 9 October 2006. It will then be debated in the Autumn and brought into operation in April 2007.
4. Copies of the draft Order and explanatory memorandum are available on the Water Reform website www.waterreformni.gov.uk. Copies can be obtained by contacting the Water Reform Unit on 028 90542 985.

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