New plans are in the pipeline for NI water

Trade union leaders fear up to 700 jobs may be lost under government plans to replace the Water Service in Northern Ireland with a new company.

Four unions - representing about 1,800 employees - have joined forces to oppose the plans, which will also mean the introduction of water charges.

The new company is due to start operating in 18 months time and it is planned that within five years it will be financed entirely by new water charges.

However, the trade union, Nipsa, has said its members may take industrial action to save the jobs threatened by the proposals.

Nipsa's assistant general secretary Bumper Graham said strike action could not be ruled out.

"If that means having to close the Water Service down for a week or two, to safeguard the long-term public provision of water, we will," he said.

NIO minister John Spellar said it would make the system more efficient

NIO minister John Spellar said on Tuesday that the Water Service was to become a Government Owned Company, or GoCo.

The change means Crown Immunity will no longer apply, leaving bosses open to court action if the service does not meet legal standards.

The government will own the majority of the shares in the company.

The changes will happen around April 2006 and will be accompanied by the start of water charges, although this will not be confirmed until the autumn.

But by 2008 the new company will have to be almost completely self-funding.

Mr Spellar said the new company was part of a process of making the system more efficient.

The minister said the concerns of staff must be addressed in the establishment of the GoCo.

Mr Spellar said water reform would ensure increased and sustained levels of investment in Northern Ireland's water and sewerage services, without compromising the funding of other public services.

Ofreg which regulates gas and electricity in Northern Ireland will also take on a new role as water regulator from 2006.

The General Consumer Council said reform of the water service would have a direct impact on households in the province.