22 August 2003
The government is considering privatising Northern Ireland's water industry, the acting minister for the province's regional development, John Spellar, told Public Finance in an interview.
The industry is currently operated as part of the Civil Service, and Spellar said that several options were being considered for a new structure.
These were privatisation on the model of the sector in England; the establishment of a public interest company similar to Wales' Glas Cymru; a government-owned corporation, or a publicly owned company run on contract after a bidding process.
The minister said: 'The status quo is not a realistic option in terms of both management and the current funding.'
Reform of working practices is expected to lead to the loss of 600 jobs, but it is hoped that this will be achieved through voluntary redundancies.
The results of consultation on a new charging structure are being analysed. Spellar said that the new charge would probably use the same system as that chosen for local authority charging.
At present, rates are used to raise finance for local authorities and the Northern Ireland Executive, but this is to be replaced.
Final decisions on structure and charges are likely to be taken by the Northern Ireland Executive, assuming that the delayed elections take place this autumn.
A full interview with John Spellar and acting Northern Ireland Finance Minister Ian Pearson will appear in Public Finance on September 5.
PFaug2003
