I propose to take Questions Nos. 711 to 714, inclusive, together.
The Water Services Act 2013 provided for the establishment of Irish Water as a subsidiary of Bord Gáis Éireann to be formed and registered under the Companies Act. In line with the Code of Practice for the corporate governance of State bodies, the determination of the remuneration of the senior management of commercial State bodies, with the exception of the Chief Executive, is a matter for the Board of the body and not one in which I have a statutory remit.
The Managing Director of Irish Water was appointed by the Board of Bord Gáis Éireann, and his remuneration package was approved by me, with the consent of the Minister for Public Expenditure and Reform and following consultation with the Minister for Communications, Energy and Natural Resources. The gross salary payable to the Managing Director of Irish Water is €200,000 per annum. In accordance with his approved Contract of Employment, the Managing Director of Irish Water is afforded the use of a company car on terms determined by the Company. He is also eligible to participate in any company benefit schemes as may be available to him and in his case the only one applicable is health insurance.
A fundamental underpinning of the water reform programme is to ensure that the skills and experience built up over many years in local authorities are put to best use for the long-term benefit of the customer and that there is no negative impact on service to customers during the transition. It is intended, therefore, that the legislation to transfer statutory responsibility for water services to Irish Water will provide for local authorities to act as agents for Irish Water with this relationship being expressed through Service Level Agreements. The majority of the existing staff will remain employees of local authorities working under such arrangements from 1 January 2014.
Irish Water is currently recruiting to build up the internal capabilities required within the organisation. It was agreed by the Steering Group for the Water Sector Reform programme that, to ensure skills within the sector were fully availed of in building up the new organisation, competitions for positions in asset management, capital delivery and operations would be restricted to staff in the partner organisations i.e. Bord Gáis Éireann, local authorities and my Department in the first instance. Open competitions are held for all other positions and details of these are available on Irish Water’s website www.water.ie.
