The Stormont Minister Conor Murphy has told the Assembly of his proposals to address what he called 'governance issues' in NI Water (NIW).

However, the NI Finance Minister Sammy Wilson has already criticised Mr Murphy's proposals as "expensive and unrealistic".

"Bringing Northern Ireland Water back into full public ownership would have revenue consequences, making the delivery of water services to Northern Ireland dearer," he said.

"Secondly, it would make it much more difficult to draw in some private investment for the huge capital infrastructure investment which is still required."

The DUP Executive Minister was speaking shortly after the Sinn Fein Regional Development outlined the issues: "The water we drink and the disposal of waste water fundamentally affects our health, our environment and our economic development.

"This was an area already mired in controversy when I took office in May 2007, principally around Direct Rule plans to impose water charges," he said, noting that his main aim has been "to make sure we addressed the legacy investment issues".

He claimed this has been done by "pumping three quarters of a billion pounds into our infrastructure over the last three years".

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He said: "To its credit, NI Water now delivers the best drinking water quality ever enjoyed. We have achieved this without introducing domestic charges for water.

"I will continue to fight for the investment we need and to acknowledge what NI Water has achieved.

"But we have seen a catalogue of events and governance failures which have made improving these essential services more difficult.

"The structure I inherited - set up through Direct Rule legislation - is I believe, at odds with public sector provision of water and sewerage services which most people support. I do not believe this legacy has best served the public interest here," he continued.

"Extensive legislation is required to establish the new governance arrangements I feel will best deliver these services.

"This will extend beyond the lifetime of this Assembly and includes for instance the commitments we have given to public consultation and the need to take account of PAC conclusions.

"I will be bringing proposals to the Executive.

"It is my view that governance arrangements should be based on water and sewerage services being delivered by a body clearly within the public service and subject to public service controls and standards, that it is not set up to introduce separate water charges for households and that it is not set up to be privatised."

He said that, in the meantime, he must deal with the realities of what it is possible to do in the here and now: "Immediately following the publication of the report on procurement failings I agreed a joint DRD/NI Water Action Plan and welcome the actions which have been delivered to date.

"If necessary I will bring forward proposals for legislation which clarifies this position.

"In particular, I will consider whether there should be a power for me to direct the Company to adopt policies and procedures which reflect public sector disciplines."

At the same time, the Minister again defended his decision to sack four non-executive directors of NIW in March.

He said he expected robust scrutiny from Stormont's Public Accounts Committee, and also spoke of a disciplinary process at NIW that was "taking longer than expected".

(BMcC/GK)