NIBuilder 36-3 Jul-Aug

THE VOICE OF THE INDUSTRY

Potential solutions proposed for wastewater crisis in Northern Ireland INTRODUCTION OF A LOW-COST INFRASTRUCTURE LEVY IS AMONG PROPOSALS IN A JOINT POSITION PAPER PUBLISHED BY CEF, NI CHAMBER AND THE NI FEDERATION OF HOUSING ASSOCIATIONS…

A new joint position paper assesses the long-term impact of the wastewater crisis on housing and construction in Northern Ireland, while also proposing a potential

infrastructure is crippling Northern Ireland’s construction sector. We’re seeing the lowest new housing starts since the post-war era, delayed school projects, and factories opting to invest elsewhere. “Turley Economics projects that without urgent investment, 6,150 essential new homes cannot be built in the next three years, exacerbating housing shortages and driving up rents. “This stagnation would also result in 1,690 direct and 870 indirect job losses, costing the economy £1.3bn in lost construction investment, with far-reaching consequences. “The groundwork for a new approach has been laid, thanks to reports from the NI Audit Office and the NI Fiscal Council, the outcome of the UK Government’s Comprehensive Spending Review and our own findings. Now is the moment for decisive action.” The joint position paper presents a series of models which propose a progressive levy applied to rates to recoup the cost of borrowing over 40 years. The models applied analysis undertaken by Grant Thornton to illustrate how the shortfall in investment could be met by the average domestic rate bill increasing by just £101.15 per year. According to Turley Economics, investing sufficiently in wastewater infrastructure could add an additional net £2.5bn in GVA to the NI economy by building more homes. Read the full joint position paper at www.cefni.co.uk

way forward which includes the introduction of a low-cost Infrastructure Levy.

The paper was published on June 26 by NI Chamber, the Construction Employers Federation (CEF) and the Northern Ireland Federation of Housing Associations (NIFHA). It combines the findings of two reports, undertaken jointly by Grant Thornton and Turley Economics, addressing the economic impact of not delivering sufficient infrastructure to enable housing delivery. Proposals are also included for a new fiscal model to ensure sufficient investment in wastewater infrastructure in the future. Its release follows publication of an NI Fiscal Council Report on June 10, which also warns that NI’s wastewater infrastructure is facing a critical funding crisis threatening to undermine economic growth, housing delivery and environmental protection for years to come. The joint paper aligns with the Fiscal Council’s assessment that the current governance structure and the financial model of NI Water is unsustainable, concluding that action must be taken now to implement more appropriate fiscal mechanisms. Suggesting a progressive and modest rates-based levy to meet the deficit over this Price Control and the PC28 period (estimated at £2bn),

the report also calls on the UK and Irish governments to establish a Wastewater Infrastructure Transformation Fund. One levy model suggests that the cost to the domestic ratepayer could be, on average, an additional £11.80 per month. Mark Spence, Chief Executive of CEF, said, “The wastewater capacity and housing crises we face have been years in the making, but recent weeks have brought the urgent need for action into sharp focus. “While the Infrastructure Minister’s three-pronged approach has some merit, it’s clear that the Department for Infrastructure’s proposals on developer contributions and sustainable drainage fall far short of addressing the barriers to economic growth and environmental decline. “Lack of investment in wastewater

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