To ask the Minister for Regional Development whether the Executive subsidy, which off-sets water charges for domestic customers, will remain in place following the extension of the Programme for Government to include 2015/2016.

The funding of water and sewerage services is a cross cutting strategic issue with significant public expenditure implications. The Executive has given a commitment that, for households, it will ensure no additional water charges during this Programme for Government.

I brought a paper to the Executive in November 2012, which set out issues and risks associated with the governance and funding of water and sewerage services, and the Executive remitted these issues to the Budget Review Group (BRG) for consideration. The BRG’s consideration of what are complex issues is ongoing.

In the meantime, the legislation which permits the Executive to provide subsidy for water and sewerage services (in lieu of funding by charging) expires in March 2016. I instructed my officials to amend the legislation to extend the Executive’s power to provide a subsidy to NI Water until March 2017 and to take the power to extend this further by subordinate legislation. This enabling power does not pre-judge Executive consideration of the funding of NI Water in that period, but, will ensure that there is certainty about funding for NI Water’s operating expenditure while the Executive considers those future funding arrangements.