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Water and Sewerage Services (Northern Ireland) Order 2006

My Lords, it is clear that the water and sewerage infrastructure in Northern Ireland needs to be brought up to modern-day health standards. We all agree that it has to be paid for, but at a time when direct Ministers are trying to restore democratic institutions in Northern Ireland, it is regrettable that they continue to implement policies that contradict entirely the agreement of the people, their political representatives, the trade unions, the business community and other interested bodies. The Minister referred to the judicial review held in Belfast High Court on 22 November. The General Consumer Council for Northern Ireland had a victory because it was agreed that a full consultation process had not taken place. I agree with the council’s concern about the lack of consumer protection contained in the order comparable to the gas and electricity industries. That is regrettable as well. The order places the water service as a Government-owned company—GoCo—and while the Government will remain the overall shareholder, the option is available for the company to be passed into private hands. That led to a £1 billion loss to consumers when the electricity sector in Northern Ireland was privatised. It is a false proposition to suggest that the people of Northern Ireland do not pay and have never paid for water through their rates. Despite the disproportionate costs Northern Ireland consumers face for other amenities and services compared with the rest of the United Kingdom, water was first an identifiable component part of householders’ rates before being subsumed into an overall rate, which is still the case. In addition to the large increases in the regional rate that householders will face next year—which, prior to the St Andrews agreement, was uncapped—the additional expenditure to meet water costs will place an inordinate burden, whatever the additional charge upon householders who already suffer hardship and poverty. Indeed, the Government’s estimates predict the highest rate for water rising from around £260 to £800 by 2009-10, with the average charge in the region of £334. Although the actual consumption of water is a minimal element of the overall water service, the option of metering will initially be available only to new householders and pensioners. That is a wholly inequitable basis on which to administer a water charging system. If there is merit in the provision of metering, it should be open to all at the initial stages. It is about time that such decisions were deferred so that democratically accountable representatives in Northern Ireland can take them once devolution is restored.