Sinn Féin in Government - Preparing for Pritatisation in Northern Ireland

Third in our series on articles concerning water charges in Northern Ireland,  this is an extract from Sean McVeigh's 'Sinn Fein In Government'  published in 2012 in Irish Marxist Review.  Although we concentrate on the 'Privatising Water' chapter, we strongly recommend readers to read the full article downloaded from the above link.

PFI stands for Private Financial Initiatives, a way of creating "public–private partnerships" (PPPs) by funding public infrastructure projects with private capital.

Original photo of Stormont by http://www.flickr.com/photos/robertpaulyoung/

Sinn Féin in Government

Privatising Water

Until May 2011 Sinn Fein minister Conor Murphy was in charge of the department of regional development which oversees public transport, roads, and water infrastructure.  In preparation for full privatisation NI Water became a government owned company in 2007 (just before the Executive returned from suspension) with the aim of becoming ”self-financing” within three years through the introduction of domestic water charges.

When SF’s Conor Murphy took over the department in May 2007, he allowed NI Water to continue to prepare for the introduction of water charges on domestic properties by installing charging meters in every new house built in Northern Ireland. The fact that water charges have been continually deferred is evidence that both Sinn Fein and the DUP are fully aware that such a move would lead to mass resistance that could threaten the tribal basis of the Stormont regime. Murphy also continued the policy of handing over water infrastructure to be run by private companies under PFI deals. Under a deal signed with the consortium Dalriada Water Ltd in 2006 worth 110 million, the private sector will soon deliver 50.

When the deal was announced by direct rule ministers, the Stormont administration was in suspension and SF opposed the PFI contracts. But when SF got back in government in 2007 the party suddenly found merit in the PFI arrangements and Murphy presided over the transfer of large parts of the water network to the private sector.

The biggest company involved in Dalriada Water is California based multinational Aecom. This company specialises in taking over denationalised public utilities and has gas, oil and water interests around the globe.

When opening a water treatment facility in Antrim constructed with the help of Aecom in 2009, Murphy praised the PFI project saying it would ”deliver an efficient, cost effective and high quality water source”.

Sinn Fein has played a key role in shaping the activities of NI Water because Murphy as DRD minister appointed a number of directors of the company. One of Murphy’s appointments was Lawson McDonald, a director of Global Armour Ltd, which supplies body armour to the SAS and other British forces in Afghanistan. The SF minister also appointed Padraic White who as former Managing Director of the Republic’s Industrial Development Authority was lauded as one of the architects of the Celtic Tiger. White is husband of Fianna Fail senator Mary White. These are the people - put in place by Murphy - who have shaped the direction of NI Water and are moving the company towards full privatisation with the always present danger of the introduction of metered domestic water charges.

Water charges Northern Ireland : Flushing out the truth

This second article on the water charges issue in Northern Ireland comes from a BBC News article 'Water charges: Flushing out the truth'  Dec 4, 2014.  Good luck with that one.  The water charges issue in the Rep. of Ireland mimics it's counterpart in the Six Counties in many ways.  One could say we are on a parallel road.

 

Water charges: Flushing out the truth

Gareth Gordon
BBC NI December 2014

Conor Murphy said he sought change when he was minister

The current minister for regional development has said he is going to stop the practice.

The previous minister for regional development said he wanted to, but the current minister's party, the Ulster Unionists, helped prevent him.

Plenty of others are asking why millions of pounds have been spent since 2007 installing water meters, if the parties agree that we are not going to have water charges?

It is a confusing picture, so let us start at the beginning.

When devolution was restored in 2007, the executive parties put a halt to the process which would have resulted in voters being billed for water, arguing they already paid for it through rates.

But, nevertheless, in accordance with the legislation, meters were still installed at all new properties connected to the public water supply.

A Freedom of Information request by the Irish News newspaper revealed that 35,000 meters have been installed at a cost of £13m. And that cost is rising.

Last week, after the issue was publicised, Regional Development Minister Danny Kennedy revealed he intended bringing forward legislation to end the practice.

Water meters were installed at all new properties connected to the public water supply

But he, and his predecessor, Conor Murphy, clash over why it has never been done before.

Mr Murphy said he tried to, but could not get support from other parties with Mr Kennedy's colleague, Sir Reg Empey, being one of those most strongly opposed to the move.

"It simply wasn't enough to stop what the British government had been trying to do in 2006 and 2007, but we had to change direction for NIW (Northern Ireland Water) in order to put the company itself and the department on a surer footing about where it was going," he said.

"There were a range of papers brought to the executive and Reg Empey and others were the most vociferous opponents.

"If Danny Kennedy is proposing now to change that legislation - to stop the roll out of meters into new builds, because that was legislated for prior to us coming into office and couldn't be changed only with legislation - if he's proposing to do that, then I hope he gets full support from the executive, because I wasn't able to achieve that when I was a minister," he told the BBC's The View.

But Mr Kennedy disputes this version of events.

"My predecessor did nothing that I can trace to have the law amended. I think Sinn Féin (is playing) the politics of both sides off the middle and that's very regrettable indeed.

"There is no significant evidence that supports that. There is clear evidence that something like 26,000 meters were installed during his term as minister for regional development. I'm more interested in changing the law as it stands and I'll be proceeding to do that as quickly as possible."

Councillor Gerry Carroll said two messages were being sent out

Campaigners welcome the move, but are still sceptical.

Gerry Carroll of People Before Profit Alliance said: "It's two messages. On the one hand, we're not going to install water charges and water meters but at the same time having water meters being installed.

"So I think it's coming out and saying to the politicians and the DRD what's happening here?"

Danny Kennedy said the current consensus was that water charges should not be applied

Alliance, which supports water charges, accuses Mr Kennedy of "running scared of populism".

Assembly member Stewart Dickson argues it is prudent to have meters in place when, not if, the charges are introduced.

Northern Ireland Water said it was only complying with legislation, adding the meters are "not being read" and "not being used for charging purposes".

But could they, to use a currently fashionable political phrase, be a Trojan horse?

The BBC asked Mr Kennedy if he ruled out water charges forever and he said he supported executive policy.

But could Ulster Unionist party policy change?

Mr Kennedy said: "Well it's a matter that one single party will not be able to effect this change.

"There has to be consensus around the executive table and it's clear what the consensus is - the consensus is, at present, that water charges should not be applied."

 

A Look back at Water Charges in Northern Ireland 2007

We are presenting a series of articles about the water charges campaign in Northern Ireland.  We are amazed that the present day anti water charges campaign in the 26 counties have not highlighted what was not only a forerunner to the fraught water charges campaign here but also the fact that it was such a successful campaign, albeit an ongoing one.

Imagine up to now we have been fed statements from Sinn Féin about how they put a stop to water charges in Northern Ireland.  Literally, or as in political parlance,  that may be true since Sinn Féin were in a position of authority in the power sharing arrangement in Stormont.  However,  what we were not told was that they, along with their DUP colleagues in the NI Executive,  were forced into adopting the stance they took by a well organised,  cross community anti water charges movement led by NIPSA.  What is also significant is the other little fact that was left out, which was that the leadership did not support what turned out to be the mainstay of the campaign 'non-payment of water charges'.  Doesn't that ring a bell.

The first article is from BBC NI 2007 'Water Bills on hold after deal'.

 

Water bills 'on hold' after deal

Anti-water rates protesters took their campaign Stormont

Water bills due to be posted out on Tuesday have been put on hold following the news that power-sharing will return to Northern Ireland.

Secretary of State Peter Hain said the move had been made at the request of the DUP and Sinn Fein.
The executive will deal with the issue when devolution is restored on 8 May.

The parties have now asked for further talks with Gordon Brown. News of the postponement came after trade unions protested against water bills.

Nipsa's general secretary John Corey addressed the demonstration at Stormont, on Monday saying the campaign for non-payment of water charges applied "with equal force" to direct rule ministers or to a devolved administration.

"For the last four years we have listened to direct rule ministers insisting there is no alternative to household water charges," he said.

Water bills are in their envelopes ready for the post

"Now the secretary of state says water charges can be suspended - or even abolished by the assembly.

"Why would anyone pay charges that the government is prepared to switch on and off and use as a political football?

"This confirms the nonsense and the unfairness of these charges in Northern Ireland."

The new charging system, linked to the value of homes, was due to start in April.

The system - to be phased in over three years - was being introduced because the government wanted water and sewerage services in Northern Ireland to become self-financing.

But the decision proved highly controversial - with critics arguing that the government had not justified the soaring bills.

Gary Mulcahy, secretary of the We Won't Pay Campaign, said news that water bills would not be delivered this week was another "humiliating climbdown for the government and a welcome relief for householders".

"The threat of mass non-payment of water charges has forced the DUP and Sinn Fein to negotiate the delaying of the charges," he said.

"But this does not go far enough. The charges should be completely scrapped, not just delayed for another 12 months. As long as the threat of water charges looms, so will the threat of mass non-payment.

"The We Won't Pay Campaign will not shy away from organising mass non-payment of water charges if they are introduced, in any form, by the assembly."

On its website, the Department of Regional Development said that £3bn was needed for water and sewerage services in the 20 years to 2023.

"A Northern Ireland Executive could decide to reverse the policy on water charges," it said.

"But if it did it would have to decide how to sustain current levels of investment without cutting back on other public services such as health or education.

"This would be made extremely difficult by the loss of the Treasury concession on Water Service capital costs which is dependent on self-financing status being obtained.

"This concession is worth tens of millions of pounds over the next 20 years."