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All housebuilders may have to pay into water fund

John Campbell
BBC News NI business and economics editor
Dan Dunkley/Getty Images A builder using a spirit level while bricklaying at a building site. The man is wearing a white hard hat and a yellow high-visibility vest over a black fleece top. Dan Dunkley/Getty Images
A consultation has been launched seeking opinions on whether building firms should contribute to financing wastewater systems

All housebuilders in Northern Ireland could have to pay into a wastewater infrastructure fund under proposals outlined by the infrastructure minister.

It is part of a plan to improve a chronically underfunded water system which is holding back development.

The minister, Liz Kimmins, has set out a second proposal which would involve voluntary contributions from developers.

She said developer payments alone would not solve the problems but would be a "step forward on the journey towards having the infrastructure we all need".

Much of Northern Ireland's wastewater infrastructure is ageing and needs upgraded.

It means there are more than 100 towns and villages where the system is operating near or above capacity and cannot accommodate any additional wastewater connections.

That is preventing housebuilding and other development.

The minister said: "Due to years of historic underfunding and austerity by the British government, our current drainage and wastewater infrastructure is in urgent need of upgrades.

"Improving our sewerage systems will be a significant undertaking, costing billions and spanning multiple decades."

Infrastructure Minister Liz Kimmins smiling at the camera. She has dark hair tied back and is wearing a black coat over a white and pink patterned blouse.
Infrastructure Minister Liz Kimmins has developing proposals for charging housebuilders

Change could lead to higher house prices

The parties in the Northern Ireland Executive are opposed to direct consumer charges for water, as happens in the rest of the UK.

That has led to the minister developing proposals for charging housebuilders.

The two proposals out for consultation are:

  • A compulsory developer levy - this would require a financial contribution from developers with the money being used to fund new infrastructure on a prioritised needs basis across Northern Irerland.
  • A voluntary contribution - developers, currently unable to build due to a lack of wastewater capacity in their area, could opt to pay to offset the costs of upgrading or replacing the infrastructure preventing new connections.

The consultation document acknowledges that both options would increase costs to developers which could mean higher costs for house buyers or deter some projects.

Mark H Durkan, infrastructure spokesman for the opposition SDLP, said developer contributions can play a part but "this can't divert our attention on the need for other, urgent action to address our growing wastewater crisis".

He added: "The Audit Office has recommended an expert led review of NI Water's funding and governance model, but like her predecessor, Minister Kimmins has buried her head in the sand and refuses to have such a review carried out."