Northern Ireland Water faces questions

26 November 2007

New controversy has hit the UK's water industry, with the revelation of apparently extravagant consultancy fees at Northern Ireland Water.

A total of £16 million has been spent on management consultants by the company since April, Ulster Unionist MLA George Savage said.

In recent weeks, industry regulator Ofwat has levied a £20 million fine against Southern Water for misreporting customer service data - and Severn Trent Water is also to be investigated by the Serious Fraud Office for allegedly lying about its leakage figures.

Mr Savage commented that the consultants' fees were "far too high" for the government-owned company, representing a waste of taxpayers' money.

"People have a right to know where and how this money is being spent," he added.

"How can £16 million be spent in consultancy work in six months?"

Going forward, Mr Savage said that the Minister for Regional Development along with bosses at the water firm should come up with "very good answers" to his questions if "some degree of trust and integrity" among consumers was to be retained.

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