9 January 2007	PN 18/06

COMMITTEE PRESSES SECRETARY OF STATE TO DEFER WATER CHARGES

The Transitional Assembly’s Committee on the Programme For Government (PfG) met yesterday and again considered a report from its sub-group on Economic Issues.

The report looked at the economic package outlined by the Chancellor at the meeting with political parties on 1 November 2006. At last week’s meeting, the Committee concluded that it was insufficient to create the new fiscal and investment environment required and wrote to the Chancellor with proposals for an alternative package.

At yesterday’s meeting the Committee endorsed the sub-group’s recommendation in relation to water reform, namely:-

(a) Continue to press the Government to take account of the opposition to water charges from all of the Assembly parties and to defer the water reforms for consideration by a future devolved administration, by not proceeding to exercise the powers being introduced in January 2007 and by not commencing the remaining provisions after 1 April 2007;

(b) Continue to call for the cost of such deferral to be covered by any negotiated economic package; and that failing (a) and (b) PfG Committee should

(c) Call upon the Government to undertake the necessary measures to reduce the capital valuation of the proposed GoCo from £1 billion to £500 million and to re-examine the required rate of return, which is set at 5.8%, with a view to lowering it (perhaps to 3.5%).

The Committee agreed to write again to the Secretary of State for Northern Ireland, the Rt Hon Peter Hain MP on this important issue.

The Committee Chairperson, Jim Wells MLA, said, “I know that the Committee has written on several occasions to the Secretary of State on this but it is vital that we continue to press for the matter to be decided by a devolved Assembly.”

Information about yesterday’s meeting can be obtained from the Information Officer -

Mr Paddy Price
Information Office
Room B2
Parliament Buildings
Belfast
028 90 521137