Northern Ireland stands at a tipping point. Our outdated, underfunded wastewater infrastructure is no longer a problem that can be patched up — it is now so inadequate, it is actively damaging our economy, choking the construction sector, and placing our ability to meet basic housing needs in jeopardy.
A joint position paper commissioned by NI Chamber, the Construction Employers Federation (CEF), and the Northern Ireland Federation of Housing Associations (NIFHA) lays bare the consequences of inaction. Drawing on analysis from Grant Thornton and Turley Economics, it confirms what our members and communities have known for too long: without urgent strategic investment in wastewater infrastructure, we cannot build, grow, or plan with any confidence.
This is not a technical issue – it is a societal one. Housing is a human right, yet right now, thousands of families across Northern Ireland are stuck in limbo, unable to access safe, affordable homes because the infrastructure needed to support development does not exist. The current funding model for NI Water is broken, and it places our ability to deliver new homes in severe jeopardy.
In fact, Turley Economics projects that without immediate intervention, 6,150 essential new homes cannot be built over the next three years. That shortfall will push more families into housing stress, exacerbate rental inflation, and stall progress on the Department for Communities’ Housing Supply Strategy. It will also prevent us from meeting the objectives outlined in the NI Executive’s Programme for Government.
But the fallout doesn’t end with housing. The economic consequences of this infrastructure failure are vast. New commercial projects are being delayed or cancelled altogether and investors—who might otherwise bring jobs and opportunity to Northern Ireland—are choosing to put their money elsewhere. The report warns that this stagnation could result in the loss of 1,690 direct and 870 indirect jobs, and an eye-watering £1.3 billion in lost construction investment.
There is no silver bullet to the problem. Last week, the Infrastructure Minister announced new wastewater connections which will allow 400 new properties to be connected in Newry and of course, that is to be welcomed. But addressing the scale of the underlying issues also requires a long-term, strategic and multifaceted approach.
At the core of the issue is NI Water’s funding model. Unlike other utilities in the UK, NI Water is unable to borrow or raise capital like a standard regulated utility. It is bound by public expenditure rules, which means it simply cannot deliver the infrastructure our society and economy requires. The NI Fiscal Council has echoed these concerns, warning that this model is unsustainable and must be replaced.
This is not a debate about whether we can afford to act—it is about whether we can afford not to. Doing nothing guarantees rising costs, delayed progress, and widening inequality. But there is an alternative. This is an ‘invest-to-save’ opportunity: by reforming how we fund and deliver wastewater infrastructure, we can unlock housing growth, revive construction, protect our environment, and support the long-term health of our economy.
Every report which has been undertaken to date has said that a solution needs to involve some form of revenue raising. The NI Executive has made it clear that to date, this is not part of its plan. Our joint report proposes that a multifaceted solution is needed, which includes proposals made by the Infrastructure Minister, a government-backed Infrastructure Transformation Fund and a modest, progressive Infrastructure Levy to help close the extensive £2bn funding gap.
Any such levy would be far from an amount that would represent a water charge. One of the models in our report suggests that the cost to the domestic ratepayer could be on average an additional £11.80 per month. Those on housing benefit or universal credit would receive help and those in larger houses would pay more.
What’s at stake here isn’t just a new fiscal model – it’s about making Northern Ireland a place where businesses want to invest, where young people can afford to live, and where infrastructure serves everyone in society.
We must confront this challenge with urgency, clarity and courage. Doing nothing is not an option; the problem will only get worse. The prize of action, on the other hand, will facilitate a housing system that works, a construction sector that thrives, a cleaner environment, and an economy that can deliver better jobs for our society in the future.
Joint Position Paper Proposes Potential Solutions to Wastewater Crisis in Northern Ireland
26th Jun 2025
Read Article