To ask the Minister for Regional Development what are the financial implications of the classification by the the Office of National Statistics of NI Water as a non-departmental public body.

The financial implications of the classification by the Office of National Statistics (ONS) of NI Water as a non-departmental public body (rather than a public corporation as had previously been the case) are that the majority of its expenditure forms part of the DRD budget. This has been the case since the 2008/09 financial year. Prior to the reclassification, it was only the cash transactions (subsidy, loan draw downs, interest and dividend) between DRD and NI Water that formed part of the DRD budget.

The ONS decision was a direct consequence of NI Water continuing to receive the majority of its revenue through subsidy from the Executive in lieu of domestic charging. This has meant that the company has not been able to act as intended when it was established – as a regulated utility with an independent income stream from charging operating at arm’s length from Government.