I propose to take Questions Nos. 438 and 475 together.
The Government decided in December 2011, based on the recommendations of an independent assessment, to establish a public water utility company, Irish Water, to take over the operational and capital delivery functions of local authorities in the water services area. Following further consideration as to whether Irish Water should be established as a new entity or whether existing bodies in the Semi State sector could undertake the function, the Government decided that Irish Water should be established as an independent state owned company within the Bord Gáis Group
A phased transition is proposed to ensure continuity of service and the building of a fit for purpose organisation within a reasonable timescale, and it is also expected that Irish Water will maintain a strong regional and local focus for operational delivery. Service level agreements will be put in place between Irish Water and local authorities and these arrangements will be in place until 2017 at the earliest. This will ensure a smooth transition to the new model and guard against the loss of local expertise. It will also mean that the majority of staff will remain in the direct employment of local authorities for a considerable period. The Department has had initial engagement with ICTU, and there will be continued engagement with staff and Trade Unions in the rollout of the proposed changes.
Work is now focused on the development of an implementation strategy which will address transformation planning, including human resource issues, in more detail. The implementation strategy is being developed in collaboration with relevant Government Departments, local authorities, BGE and NewERA. The rollout of the strategy will also involve co-operation with local authorities and staff to ensure that the change is managed well.
