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Irish Water Establishment

Dáil Éireann Debate, Wednesday - 17 April 2013

Wednesday, 17 April 2013

Questions (176, 177, 178, 179)

Micheál Martin

Question:

176. Deputy Micheál Martin asked the Minister for the Environment, Community and Local Government the costs associated with the establishment of Irish Water; if he will outline in detail the areas of spending his Department has approved for this project; and if he will make a statement on the matter. [17911/13]

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Micheál Martin

Question:

177. Deputy Micheál Martin asked the Minister for the Environment, Community and Local Government the amount that Irish Water and local authorities will spend on external consultancy contracts during the process of establishing Irish Water and transferring responsibilities and assets; if he will outline details of any tenders already awarded; and if he will make a statement on the matter. [17912/13]

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Micheál Martin

Question:

178. Deputy Micheál Martin asked the Minister for the Environment, Community and Local Government the assets that will be transferred from Dublin City Council, South Dublin County Council, Dun Laoghaire/Rathdown County Council and Fingal County Council to Irish Water; and if he will make a statement on the matter. [17913/13]

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Micheál Martin

Question:

179. Deputy Micheál Martin asked the Minister for the Environment, Community and Local Government if the properties transferred from the Dublin local authorities to Irish Water will be subject to local authority rates; if so, if he will provide an estimate of this cost to Irish Water; and if he will make a statement on the matter. [17914/13]

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Written answers

I propose to take Questions Nos. 176 to 179, inclusive, together.

The Water Sector Reform Implementation Strategy, which is published on my Department’s website, is focused on ensuring that appropriate policy and legal frameworks are put in place for Irish Water and the water sector. A key objective is to rationalise the cost of the current service delivery and ensure more efficient operation of water services by moving from 34 water services authorities to a single body; following enactment of comprehensive legislation later this year, Irish Water will, therefore, become the water services authority from 1 January 2014.

The transfer of assets from the existing water services authorities to Irish Water supports the overall objective of delivering efficiencies within the sector by allowing Irish Water to control assets, revenues and costs, thereby supporting better economies of scale in terms of both capital investment and operating costs, and optimise borrowing capacity. The identification and valuation of the relevant asset base and the development of policy and legislation for the transfer of these assets is being progressed. Work is also underway on the boundary issues between functions which will transfer to Irish Water and those remaining with local authorities. The financial implications for the local government sector following the transfer of functions are also under consideration including the treatment of rateable assets which are transferred to Irish Water.

The implementation strategy is being rolled out under a range of workstreams which involve local authority, Departmental and Bord Gáis personnel and using the range of skills and experience in these organisations. Bord Gáis are also in the process of seconding 80 to 90 staff from local authorities and the Department to support work on the Irish Water programme. External service providers, appointed by Bord Gáis by way of public procurement processes, will be involved in various aspects of the programme including company establishment, customer service and billing and the water metering programme. It would be expected that all expenditure incurred by Bord Gáis would be subject to rigorous assessment prior to being incurred and to strict control procedures with a view to ensuring that the required work is undertaken in the most economically advantageous way.

It will be a matter for the Commission for Energy Regulation in due course to satisfy itself in relation to the appropriateness of costs incurred in the operation of Irish Water.

A Local Authority Transition Office has been established by the City and County Managers Association to coordinate local government input into the water reform programme. The Department has agreed to provide funding for the work of the Transition Office, including the use by it of external service providers where necessary, subject to appropriate budgetary control procedures.

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