CEF calls for evidence led approach to tackling wastewater crisis

2 July 2026  Business Environment Infrastructure Housing

Following statement by NI Executive Ministers and other elected representatives, the Construction Employers Federation (CEF) is calling for an evidence-led debate on wastewater infrastructure and housing delivery following new analysis highlighting the scale of economic and housing impacts linked to capacity constraints across Northern Ireland.

 
The report - Wastewater Constraints and the Cost of Delay in Northern Ireland, produced by OCO Global and Turley Economics for the Wastewater Infrastructure Group (WIG) was published yesterday and launched at an event at Parliament Buildings, Stormont. 

The report finds that Northern Ireland's economy could be £10.9 billion smaller by 2040, equivalent to around £5,500 per household, if wastewater constraints are not addressed. It identifies around 55,000 homes currently affected by capacity constraints, of which around 17,500 cannot connect at all, alongside a projected £1.29 billion funding shortfall for the next price control period.

Responding directly to comments made in the media by NI Executive Ministers and other elected representatives, CEF have sought to fact check some assertions made:

• The Wastewater Infrastructure Group is not proposing the privatisation of NI Water: The work commissioned by the Group in 2025 and 2026 explicitly excluded privatisation from the scope of potential solutions, respecting the political positions held by a number of local parties. 
• The Group is not proposing water charges: What has been suggested is the exploration of a ringfenced levy linked to domestic rates as part of a broader funding package. The revenue generated could be used to support long term borrowing for essential wastewater infrastructure investment.
• Such an approach could retain NI Water in public ownership while reducing pressure on the Executive's budget. Based on current assumptions, including borrowing on a 50-year gilt, the estimated average cost would be around £1.25 per household per week.
• The Group remains open to alternative solutions and has given explicit indications to that end. What we need in the short term is a commitment to fully fund NI Water to level of need determined by the Utility Regulator for PC28. Indeed, its 2025 report recommended establishing stakeholder engagement structures to consider and assess all viable options.
• Any proposed model has been framed around affordability and fairness: The intention is that those with the broadest shoulders contribute more, while vulnerable households are protected. 

CEF Chief Executive Mark Spence said:

"We need a fact-based discourse about this crisis, and assertions made by our elected representatives without evidence are misleading the public. To be clear, no one is proposing privatisation. That was explicitly ruled out of scope, nor is this about traditional household water charging. Those descriptions do not reflect the approach being set out. Wastewater constraints are now directly affecting housing delivery, investment and economic growth across Northern Ireland, and this analysis sets out the scale of the challenge - £10.9 billion by 2040, with 55,000 homes affected.

What is being considered is whether there are sustainable long-term mechanisms to unlock the infrastructure required to support housing delivery, while keeping NI Water in public ownership - around £1.25 per week for the average household. The independent Fiscal Council has previously indicated that even under such an approach, the overall bill for a Northern Ireland household would likely remain below the UK average. It is worth remembering that while businesses here already pay directly for water and sewerage, the link between domestic rates and water funding was broken in the late 1990s. The rate was never reduced, and in reality no dedicated domestic funding stream has existed since. A ringfenced levy would restore that link in a measured, progressive way. Without it, we will continue to see rents, homelessness and house prices increase in the short term, and wider economic damage in the long term.
 
We remain open to alternative approaches, and we support proper examination of all viable options. In the short term, the key requirement is a commitment to fund NI Water to the level of need independently set by the Utility Regulator.
It is also important that the funding context is clearly understood. While NI Water has been funded at around 90% of its in year ask, this figure was revised down at mid-term review due to funding pressures. So in practice the goal posts have been moved and the 90% equates to closer to 45% of NI Waters capital needs. A projected £1.29 billion shortfall remains, with a proportion of planned investment deferred. Additional funding of £30 million since autumn 2024 has helped unlock around 5,300 properties, but set against 55,000 homes seeking connection, this represents only a small proportion of the overall need. This debate should be grounded in the evidence. The challenge is clear. The question now is how Northern Ireland puts in place the infrastructure needed to deliver the homes, investment and economic growth the region requires.”

Read the report here.