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.

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."