Debate contribution: Northern Ireland Water Budget Position 2024-25

Debate contribution by Ms Liz Kimmins on 25 March 2025.

MLA

Ms Liz Kimmins

Party at the time

Sinn Féin

Date

25 March 2025

Type

Debate contribution (made as a minister)

Business

Ministerial Statement

Heading

Northern Ireland Water Budget Position 2024-25

Assembly identifier

Official Report component 4866307

Read the official Assembly record

Text

Health and safety is paramount in every case. I have said clearly that we have been working with the board. However, if my Department overspends, there is a consequence. We all have difficult work to do to ensure that we live within our budgets.

I do not underestimate the challenges that any ALB has in living within its budget. The point of the investigation is to ensure that everything that is being managed within the budget is done in the most effective and efficient way. A number of factors have led to the overspend, and I have been working with NI Water to identify those and find where savings can be made.

The issue is that the overall Executive Budget is not enough — the Member is fully aware of that — and the allocations that I have received are not enough, so we have to dot our i's and cross our t's to ensure that every penny goes where it needs to go. This is a really good opportunity for NI Water to outline its position clearly so that we can stand over that when allocations are made and say that NI Water cannot continue to reduce. I hope that the Member is reassured that health and safety is paramount to me and that we are doing these things because we want to ensure that everything is done as effectively and efficiently as possible.

As I said, it has been an ongoing issue, and we have said it on numerous occasions through my engagement, my officials' engagement, my permanent secretary's engagement and my predecessor's engagement with it. It has been an ongoing matter for discussion. Whilst the overspend has significantly reduced through the year, we are, unfortunately, still in this position. It is important that I recognise the seriousness of this and that we take steps to ensure that it does not happen again.

That is still being finalised. We hope that the investigation will commence in approximately a week, so we are in the finalisation stage. Departmental officials expect to engage on a very regular basis — weekly — with NI Water, and we have made it aware of that. That, hopefully, shows our commitment to concluding the investigation as soon as possible and as thoroughly as possible. The forensic accountant will be completely external to the Department. I hope that they can look at it from a different perspective that will give us a clearer view of the inner workings of how budgets are managed and where we can make changes to resolve the issues.

We are doing a range of work to address those issues. The Member has outlined in particular the delivery of housing. She will be aware that, last Friday, I launched the developers' contributions consultation. This is another step in our work on numerous issues to address the overall funding issue. NI Water is classified as a non-departmental public body (NDPB). It receives

50% of its revenue from government subsidy, and borrowing is provided through my Department. Reclassifying NI Water as, for example, a mutualised company would require the removal of NI Water from central government oversight and the introduction of a guaranteed and predictable funding stream that is not subject to direct political control or competing public-sector priorities. Additionally, NI Water would be required to secure debt financing through the private bond market, potentially resulting in huge risks due to the scale of borrowing and servicing of that debt. Evidence from water and sewerage companies operating under mutual and privatised business models in England and Wales has clearly demonstrated that significant operational pressures persist in many of those companies, particularly with sewerage infrastructure, in addition to serious concerns about debt management and the cost of servicing debt. As the Member will know, I am opposed to the introduction of domestic water charging, as it would impose additional financial burden on people and families in the midst of a cost-of-living crisis.

As I have said, I am continuing with the three-pronged approach that is already in place. Today's announcement will, hopefully, strengthen the work that I am doing with Executive colleagues on future allocations and complement the other work that is happening around the waste water and sustainable drainage Bill and developer contributions. There is a recognition across the House that we have to do everything in our power to try to resolve the issue. There is a real willingness on my part to do so, but the one thing that I will not commit to do is to put an additional financial burden on domestic customers.

My decision today indicates that I have not lost control of my Department. Every ALB is having difficulties, but a number of them that are linked with my Department have lived within their budget and have had to make very difficult decisions in order to do so. As I said earlier, this is my approach to try to tackle that issue, to understand very clearly why NI Water is in this position and, if we can do more, where we can do more, both within the allocated budget and as we move forward as an Executive.

That is exactly why we are doing this. I am acutely aware of how important the issue is. Water quality is key. We have to do more to ensure that the money that has been allocated is spent in the right way and that we are using it in the most efficient way to deliver the services that the Member outlined.

At present, the total budget is £500 million, so just £0·5 billion.

At this stage, I do not have the estimated cost, but I can come back to the Member when that is available.

I take on board the Member's comments.

The investigation is restricted for six weeks. I hope that we will receive the report shortly after that to ensure that we can move on and deal with the outcome of it as quickly as possible.

998 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

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Assessed 21 October 2026 at 12:07 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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