Developers will be able to pay towards wastewater upgrades, says minister

Housing developers will be able to pay towards the cost of upgrading wastewater infrastructure in places where they want to build, the infrastructure minister has announced.

It is part of a plan to improve a chronically underfunded water system which is holding back development and contributing to pollution across Northern Ireland.

The minister, Liz Kimmins, said the voluntary contributions would provide developers with an opportunity to progress some projects.

The opposition Social Democratic and Labour Party (SDLP) said the scheme would be "a glorified tip jar, unlikely to produce one affordable home".

The minister had also been considering whether developers should be required to pay a compulsory levy towards wastewater infrastructure.

That has been ruled out for now but Kimmins said her officials would continue work on the potential introduction of a compulsory levy in the future.

"This longer-term work will be informed by the experience and outcomes of the voluntary arrangements now being put in place," she added.

A voluntary contributions system will require a new law to be passed by the Stormont Assembly and it is unclear how long that will take.

Much of Northern Ireland's wastewater infrastructure is ageing and needs upgraded.

It means there are more than 100 towns and villages where the system is operating near or above capacity and cannot accommodate any additional wastewater connections.

That is preventing house building and other development.

The parties in the Northern Ireland Executive are opposed to direct consumer charges for water, as happens in the rest of the UK.

That has led to the minister developing the proposal for contributions from developers.

The house builders lobby group, Build Homes NI, has criticised the proposal describing it as "distraction from the fundamental problem which is NI Water's broken funding model".

Paul McErlean, director of Build Homes NI, said: "NI Water is facing a £2bn deficit during its next funding period and as the Department for Infrastructure's own consultation acknowledged, developer contributions will not address the magnitude of this funding crisis."

Some Northern Ireland business groups have proposed a £100 increase in the average household rates bill to pay for water system upgrades.

That idea has so far failed to attract political support.