Water plans 'not financial sense'

Water charges are being introduced to Northern Ireland

Plans for the Water Service in Northern Ireland do not make financial sense for consumers, a water privatisation expert has said.

David Hall of the Public Services International Research Unit at the Greenwich University made the comments.

He said it was more expensive for private companies to borrow the capital needed to invest in the NI system.

"My advice to the assembly is do the figures and very rapidly abandon the idea of privatisation," he said.

"Because it will only increase the cost and increase the prices.

"Keep it in the public sector - the financing of capital expenditure is cheaper that way."

Under plans announced by the government, the average household will pay £115, rising to £340 in three years.

The charges will vary according to property value, but will be capped at £750, with the lowest household charge about £150.

The Department for Regional Development has said the secretary of state has ruled out privatisation of the Water Service under direct rule and this will be up to the devolved administration to decide.

It said that the GoCo (government owned company) to be set up on 1 April, 2007, would be wholly government-owned.