Consultation on water and sewage charges in NI launched

Five options for introducing household water charges in Northern Ireland have been put out to public consultation.

They include a flat rate charge for all households, a charge related to the value of houses and the introduction of water meters.

The consultation was ordered by the secretary of state as part of a broader consultation on revenue raising.

Any decision on water charges would have to be made by a Stormont Executive or, in its absence, the NI secretary.

Other revenue raising consultants include drug prescription charges and increasing university tuition fees.

Unlike other parts of the UK, households in Northern Ireland are not billed for water.

The water system in Northern Ireland is largely funded by government resources rather than consumer charges. The water company, NI Water, is government-owned.

In 2007, the then direct-rule Secretary of State Peter Hain planned to introduce water charges.

Bills had been printed and were ready to be sent out but were pulped at the last minute when the Democratic Unionist Party (DUP) and Sinn Féin agreed to restore devolved government.

The executive later commissioned an independent review of water funding but decided not to introduce charging.

Recent analysis by the independent NI Fiscal Commission suggested about £350m could be raised in water charges every year.

The new consultation does directly suggest how much could be raised but does arrive at a similar figure to the Fiscal Commission.

It suggests that fully covering the day-to-day running costs of NI Water would need charging revenue of about £172m with a further £155m needed to cover infrastructure costs.

However it says the level of revenue generated would be dependent on a number of policy and implementation decisions including the length of any phasing-in period and discounts of poorer households.

The five potential methods being consulted on are:

• A flat rate charge that would apply equally to all households

• A charge based on the capital value of the property, along the lines of household rates

• A hybrid charge with a flat rate element and variable charge based on the capital value of the property

• The use of water metres

• A hybrid of a flat rate charge and metering.

The consultation is due to run until 13 March.

Northern Ireland Secretary Chris Heaton-Harris said he also planned to review the level of the regional rate.

The rate forms part of the calculation of annual rates bills.

The proposals first emerged in August as part of 40 revenue-raising measures compiled by civil servants.

They drew criticism from political parties, with Sinn Féin accusing the secretary of state of using the proposals to apply pressure on the DUP to return to power sharing.

• Why does Northern Ireland need more cash?

• Attempt to pressure DUP harming public - Sinn Féin

Mr Heaton-Harris has said generating revenue is "not merely an option but a critical necessity" to improve the sustainability of Stormont's public finances.

Those who wish to contribute to the consultation can do so here.

Mr Heaton-Harris set a budget for Stormont earlier this year in the absence of local ministers, leaving civil servants faced with making substantial cuts.

Chris Heaton-Harris, Secretary of State for Northern Ireland

Under current legislation, the NI secretary does not have the power to unilaterally implement revenue-raising measures, but he has not ruled out taking that power at some stage.

Stormont's power-sharing executive collapsed last year after the DUP withdrew in protest against post-Brexit trade barriers between Northern Ireland and Great Britain.

The Windsor Framework was struck by the UK government and European Union earlier this year in an effort to address concerns with previous arrangements under the Northern Ireland Protocol.

But the DUP has said the deal does not go far enough. The party has been in talks with the UK government to seek further legal assurances of Northern Ireland's place within the UK internal market.