Article from the March 2006 issue of the Socialist
newspaper of the Socialist Party, Irish section of the CWI

Say no to water charges - No water privatisation

By Gary Mulcahy
THE GOVERNMENT is frantically pushing ahead with its plans to introduce water charges before the deadline of April 2007.

The water service will be transformed into Northern Ireland Water Ltd (NIWL), a government-owned company which will be subject to the Companies Act legislation. One of the factors leading to the forced postponement of the introduction of water charges, aside from the threat of mass non-payment, was the lack of a separate billing and charging mechanism.

Crystal Alliance, a consortium of multi-national companies that specialise in water privatisation, were awarded a lucrative seven year contract to run the billing mechanism. However, new legislation is required in order for the Rates Collection Agency, the Valuation and Lands Agency and the Northern Ireland Housing Executive to share information with the Department of Regional Development regarding the details of the 760,000 households across the North.

This draft legislation is now being put through a "consultation" process. Further legislation allowing NIWL to access information regarding people's addresses and social security status will be drafted later in the year.

The government have also released the Strategic and Financial Review of Water Service. This document outlines how the water service is to be privatised over the coming years.

Decades of neglect by successive governments has led to a crumbling infrastructure with high levels of leakage in the system. In the 80s, Thatcher pumped £6.6 billion into the water service immediately prior full-scale privatisation, commonly referred to as the "Green Dowry". This was in effect a subsidy to the private water companies so they would not have to invest in the service.

Today New Labour are about to repeat what Thatcher did in the 80s by fully repairing and modernising the water and sewerage infrastructure before handing it over to the private sector. In the five years leading to 2008, an estimated £1.1billion of taxpayers' money will be handed over to private companies to modernise the infrastructure.

The government has decided to keep NIWL wholly government-owned until 2008, when the position will be "reviewed". In reality the privatisation of water will be completed when the service has been repaired and water charges are introduced.

A mass campaign of non payment will scupper the privatisation plan as well as the charges. The next major step is the "We Won't Pay" rally on 1 April at Belfast City Hall. Come along and show your support.

Newry - support grows for campaign

THE "WE Won't Pay" Campaign has made a big impact in Newry where it is now spreading like wildfire from estate to estate. An activists' meeting was held in the Meadows estate to discuss building the Campaign with many different parts of Newry represented.

Aidan McAleenan told the Socialist about the Campaign in Newry: "The response to the Campaign on the streets and at meetings has been great. It is clear that people are extremely angry and not prepared to pay water charges.

"The 'We Won't Pay' Campaign has had street stalls to sign people up to the non-payment pledge. Now we are organising a public meeting and a rally in the town centre on 29 April. Leaflets are being distributed in the estates and people are getting in touch to get involved."

Fat cat put in charge of water.....

THE NEW Labour direct-rulers have been insisting for a long time now, broken record-like, that the public sector needs to be whipped into shape so Northern Ireland (Ltd.) can compete in the global economy. In reality this means more job losses, wages slashed, privatisation and cuts in services.

But at the same time as attacking the living standards of working class people, the well-heeled supporters of New Labour are being well looked after. Take the case of recently appointed Chair of the Water Service, Chris Mellor.

Mellor is a former boss of Anglian Water Group. He was appointed managing director of AWG in 1999 on a salary of £200,000 a year. In 2003, he resigned and was awarded with a golden handshake of £370,000. This is where water charges end up - in the pockets of the rich.

Mellor has also been a member of the Confederation of British Industry Economic Affairs Committee and has served on the government's fifth Advisory Committee on business and environment. Incredibly, Mellor will be paid a whopping £1,250 a day for overseeing the privatisation of our water service and sacking 700 water service workers!

That is over 30 times as much as the national minimum wage. So the next time you hear the fat-cats complaining about rising wage costs, tell them to take a look at themselves first.

....and joins the gravy train

WATER IS being prepared for privatisation - despite the government's denials. When it is sold, those at the top of Northern Ireland Water Ltd. can look forward to joining the same gravy train other company directors in Northern Ireland are already on.

In 2004, which is the most recent year that figures are available, the six best paid company directors here were paid over a million pounds each. Top of the heap was Ivan McCabrey of Mivan who earned more than £3 million. Not far behind is Edward Haughey of Norbrook who got £2.3 million plus various bonuses.

The highest paid directors in 55 of the top 100 companies here got an average increase of 45% that year while, at the same time, the average profits of these 55 companies fell by 54%! Belt tightening is only for workers, not for those at the top!

Plans for the April 1st demo, Belfast City Hall.
Lessons of the Poll tax protests