Forensic accountants to examine projected NI Water overspend, Kimmins announces

By Jonathan McCambridge (PA)

Forensic accountants are to investigate a projected budget overspend at NI Water, Stormont Infrastructure Minister Liz Kimmins has announced.

Ms Kimmins told the Northern Ireland Assembly she had made the decision after being informed that the board of NI Water was proposing the company should overspend this year unless additional budget is made available.

The minister said she had to “investigate the reasons why NI Water has been unable to live within its resource budget allocation”.

Northern Ireland Water, which is funded by the Department for Infrastructure, provides water and sewerage services.

It has previously warned that uncertainty of financial support and historic underfunding are having a serious impact on services.

An Audit Office report last year called for a comprehensive review of the current funding arrangements for NI Water.

Ms Kimmins told MLAs: “NI Water was allocated an opening resource budget of some £137 million, representing almost one quarter of the total resource allocation available to my department.

“During the year, recognising the importance of water and wastewater services, bids for additional funding for NI Water were submitted as part of the in-year monitoring process.

“An additional £11.5 million resource was secured for NI Water in-year.

“In addition, £2.9 million was also provided to deal with the aftermath of Storm Eowyn, bringing the current allocation to just over £152 million.

“It was made clear to NI Water that it was required to live within the increased resource allocation as it was unlikely that any further funding would become available.

“Unfortunately, in recent weeks, the board of NI Water has indicated in writing that it is minded to instruct NI Water to overspend unless additional budget is available.

“It is estimated that any potential overspend could be in the region of £3 million, although the exact quantum of this remains subject to cost variations between now and year-end close.”

She added: “It is essential I fully understand the budgetary management decisions that NI Water have taken this year that have led to the board of NI Water proposing this unprecedented and disappointing course of action.”

Ms Kimmins said protecting public funds is of the “utmost importance”.

She added: “Difficult decisions are having to be made across all departments and arm’s length bodies and therefore it is essential that I fully understand the budgetary management decisions that the Board of NI Water has taken this year that have led to this disappointing outcome.

“My decision to appoint a forensic accountant is a necessary step, that takes a measured approach, to help us work in partnership with NI Water and enable better planning going forward in these times of constrained budgets.”

Alliance Party MLA Andrew McMurray said: “Today’s news is concerning and it is important due process is carried out to get to the bottom of the situation.

“That does not distract from the wider reality that NI Water will never be in a sustainable financial position so long as the minister clings to a failed funding model that leaves our water infrastructure system without the investment it needs.

“Alliance has warned repeatedly of the societal, economic and environmental harm being caused by this approach, but successive ministers have buried their heads in the sand and reached for a series of sticking plaster solutions that will barely make a dent in the funding shortfall facing NI Water.”

A sailor on Belfast Lough (Liam McBurney/PA)