Is NI Water's Overspend Investigation a Genuine Review or a Political Smokescreen?

Infrastructure Minister Liz Kimmins firmly rejected accusations from the Democratic Unionist Party (DUP) claiming that the recent investigation into NI Water’s overspend was merely a ’whitewash.’ This statement comes after a report revealed a £3m overspend estimate for 2024-25, reduced to £1.4m following departmental intervention.

In her address to the Northern Ireland Assembly, Kimmins outlined how she appointed forensic accountants from PricewaterhouseCoopers to probe into NI Water’s budgeting issues, indicating that the organization must recalibrate its spending to remain within financial limits, rather than expecting conditions to improve over time. Notably, the report highlighted that if NI Water could secure a 5% savings from other costs, it would almost correspond to the overspend amount.

The investigation criticizes the organization’s budgetary control, emphasizing the uncertainties surrounding funding, which creates significant challenges. NI Water acknowledged the financial pressures but stressed the impact of a 27% funding gap reported by the Utility Regulator, stating that longstanding underfunding hinders achieving key objectives since its establishment in 2007.

DUP assembly member Deborah Erskine described the minister’s report as a ’whitewash,’ arguing that it lacked transparency and failed to introduce measurable goals for improvement. In response, Kimmins emphasized the qualitative insights provided by the report, asserting the importance of identifying areas for efficiency improvements. Opposition member Mark H Durkan criticized Kimmins’ silence regarding the necessary funding for NI Water, to which she conceded that simply having ’more money’ was the required answer but questioned where these funds could sustainably be sourced in the current economic climate.

The ongoing discussions highlight the pressing need for solutions, particularly as an independent watchdog recently indicated that Northern Ireland might need to implement water charges or seek alternative funding sources to enhance NI Water’s performance.