Just how much money does the NI Executive pay out to private consultancy firms?
The minister for infrastructure has ordered an investigation into the reasons why NI water has been unable to live within its budget. Price Waterhouse Coopers have been appointed by the minister. Forensic accountants have already started their investigations, with an interim report due next month. The news that this investigation is under way, and reporting in the National press that Thames Water had intended paying directors' bonuses out of a £3bn loan, which the government stopped, will be concerning for taxpayers here in Northern Ireland.
It is also concerning that NI Water informed the department that it intended to overspend by £3m if they did not receive additional funds. This would indicate a lack of accountability and governance by the board. The Workers Party believes all utilities should be in public ownership.
While the minister is within their rights to launch the enquiry, questions must be asked as to why a private consultancy firm had to be engaged. This may be ‘standard practice’ these days, but that doesn’t make it good practice. The use of outside consultants it is a wasteful approach that lines the pockets of billion-dollar companies with public money. In addition, to put it mildly, these massive consultancy firms do not have the best interests of working people at heart. The executive should break with this standard practice and do something better.
In their book, The Consulting Trap (2024), Chris Hurl and Leah B Werner describe the way that many Western governments have become reliant on consulting firms. The influence of “Transnational Professional Service Firms,” has resulted in further privatization of public services, and worsened those services that remain in the public sector.
The Workers Party is of the view that within the civil service there must be hundreds of economists and accountants capable of carrying out these types of investigations. Hurl and Wener note that “critics have questioned whether governments should be procuring such services from private firms in the first place.
"Perhaps advice should be coming from other places. For instance, public or nonprofit organizations might be better suited to deliver advice on certain issues. Or priority could be placed on developing in-house capacities."
Just how much money does the public sector pay to consultants? This is taxpayers' money that would be better spent on providing services.
