To ask the Minister for Regional Development, pursuant to AQW 10826/11-15, to detail the extra cost to the public purse incurred as a result of the reclassification of Northern Ireland Water as a non-departmental public body.

As noted in the earlier response, the reclassification of Northern Ireland Water as a non-departmental public body was a direct consequence of the Executive’s decision to defer the introduction of domestic water charges. The financial implications of deferral are that DRD requires public expenditure budget cover for the bulk of Northern Ireland Water’s expenditure of around £340 million in 2012/13.

The extent to which these costs would be reduced if Northern Ireland Water was reclassified as a public corporation, (i.e. if it was majority self-funding) would depend on the policy decisions taken about funding arrangements, for example, any arrangements for vulnerable groups, phasing in of additional payments and so on.

An indirect cost of the reclassification is that Northern Ireland Water has less freedom to achieve efficiencies because of public expenditure constraints.