The water service in Northern Ireland must become self-financing, regional development minister Angela Smith has warned.

It is the third time in a week that a direct rule minister has indicated Northern Ireland households may soon have to pay water charges.

The minister has pointed out that Northern Ireland pays much lower household rates than in the rest of the UK.

Angela Smith: Regional development minister

The rates average �400 in Northern Ireland.

In England and Wales however, including water charges, the average bill exceeds �1,000.

The increasing threat from Europe of substantial fines if Northern Ireland does not improve its water treatment has increased the urgency to find more money for water.

And under EU rules, in Northern Ireland there must be in place some form of water charge for households by 2010.

However, water rates could be brought in much sooner, as early as 2005.

When they do arrive, they are likely to average at least �250 per household.

Prior to the suspension of the Northern Ireland Assembly, a review of the rates system was under way which was due to be completed by the end of October.