Written Answers Nos. 153-161
153. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government the position regarding a development (details supplied) in Dublin 17; and if he will make a statement on the matter. [3369/14]
View answerI refer to the reply to Question No. 500 of 15 January, 2014 which sets out the position on this matter.
154. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 707 of 5 November 2013, if he will outline in detail the expenditure by Irish Water in 2013, and the projected expenditure in 2014, broken down by administration, salaries, capital expenditure and the water metering programme; and if he will make a statement on the matter. [3382/14]
View answer155. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 708 of 5 November 2013, if he will outline in detail if he or any officials in his Department signed off on an expenditure plan for Irish Water in 2013 and 2014; if his Department provides any oversight on this expenditure before it occurs; and if he will make a statement on the matter. [3383/14]
View answer156. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 709 of 5 November 2013, if he will outline in detail the funding model for Irish Water in 2013 and 2014; the sources of revenue thus far; and if he will make a statement on the matter. [3384/14]
View answer157. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 710 of 5 November 2013, if he will outline in detail the amount that has been spent by Irish Water on consultancy services in 2013 and the projected amount for 2014; if he will indicate the companies or persons involved and provide a breakdown of each contract; and if he will make a statement on the matter. [3385/14]
View answerI propose to take Questions Nos. 154 to 157, inclusive, together.
The establishment of Irish Water in 2013 was an integral component of the Government’s water sector reform strategy and involves major organisational change, an entirely new funding structure governed by economic regulation, the introduction of domestic water charges based on usage and the roll-out of a national domestic metering programme. The role of my Department is to drive the overall water sector reform process which includes developing the policy and legislation and ensuring delivery of the implementation strategy which was published in December 2012.
Bord Gáis Éireann (BGE) had responsibility for most of the deliverables under the Government water sector reform implementation strategy. BGE developed a detailed programme initiation document within the framework of this strategy, which outlined all of the tasks required to establish a fully functioning integrated public water utility and provided this to my Department in August 2012. They also provided an associated budget to my Department which outlined the costs involved in each area of activity, totalling €150m, plus €30m contingency, and reflecting both the use of BGE and external resources. The budget reflected the range of tasks to be undertaken from financial, governance, regulatory business capability, systems, brand management and customer engagement perspectives.
In addition, Irish Water has progressed the domestic water metering programme, the full cost of which is €539m excluding VAT.
All costs incurred by Irish Water in 2013 were financed by a loan from the National Pensions Reserve Fund (NPRF), with the exception of a grant of €0.57m for a pilot metering study funded by the Department. No other Exchequer funds or voted Department expenditure has been provided to Irish Water in 2013. My consent was given with the consent of the Ministers for Finance, Public Expenditure and Reform, and Communications, Energy and Natural Resources, for Irish Water to enter into the loan arrangement with the NPRF. My Department is awaiting a report on the actual drawdown of the loan during 2013. Reports to date indicate that almost €100m was spent in 2013 on establishment costs and some €35m has been spent on the initial stages of the metering programme.
The company also indicated that to date, as part of the establishment of the company, some €50m has been spent on external service providers. The procurement by Irish Water of external resources was a matter for the company and I had no role in approving individual contracts. However, the company indicated to the Joint Oireachtas Committee on the Environment, Culture and the Gaeltacht last week that the following major companies were used by the Irish Water Programme to help deliver the required systems and processes in the establishment of Irish Water - IBM, Accenture, Ernst & Young and KPMG. Further details of the contracts relating to the establishment of Irish Water are set out in the submission made by the company to the Joint Oireachtas Committee and this submission has been published on the company’s website at www.water.ie
As the establishment costs were to be included in the overall funding model for Irish Water, they would also be examined by the Commission for Energy Regulation as an integral element of the independent economic regulation of Irish Water. Against this background, and in advance of the establishment of Irish Water, my Department provided confirmation to BGE that spending being properly incurred on the water services activities would be recoverable in the event that the project was not proceeded with or, subject to meeting certain conditions, be recoverable as part of the funding model to be reviewed by the Commission. This initial commitment was provided by my Department in December 2012 and updated on a number of occasions in advance of the incorporation of Irish Water and the consent to the NPRF lending. The consent for Irish Water to enter into the loan arrangement with the NPRF was provided in July 2013, with an understanding of the overall estimated budget involved. It is also the Department’s expectation that establishment costs and metering costs will be included in the regulatory asset base for Irish Water.
The Water Services Act 2013 requires Irish Water to submit separate accounts to me not later than six months from the end of the financial year with a view to the laying of such accounts before each House of the Oireachtas. In 2014, Irish Water, which now has statutory responsibility for water services, will receive €240m in equity from the Minister for Finance and almost €490m from the Local Government Fund but no other funding from the Department’s Vote. It is anticipated that Irish Water will finance other costs from borrowing and this will be the subject of appropriate Ministerial consents in due course. My Department has requested a detailed cash flow projection in this regard for 2014 from Irish Water, which would include projected annual establishment and metering costs. We are also awaiting updated budget information on operational costs. Irish Water has agreed operational budgets with local authorities for the component of costs which they will meet during 2014.
Irish Water is currently preparing a Capital Investment Plan for 2014 – 2016 that will provide for the transition of projects previously included in my Department’s 2010 - 2013 Water Services Investment Programme. On the basis of the proposed State equity provision and borrowing, this programme is likely to give rise to spending of some €310m in 2014.
158. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 711 of 5 November 2013, if he will outline in detail the number of staff who have been directly hired by Irish Water in 2012, 2013, and to date in 2014; the number that have directly transferred from local authorities; if he will provide a breakdown of the number of staff earning €70,000 or more, €80,000 or more, €90,000 or more, the number paid €100,000 or more, the number paid €125,000 or more and the number paid €150,000 or more; of all those staff the number who have provision for bonuses in their contracts, and specifically for each position that has bonuses as part of its employment contract, to outline the salary applicable and the amount of bonus as percentage of salary they are entitled to and the associated duties of that position, and in general the criteria that must be met to qualify for a bonus; and if he will make a statement on the matter. [3386/14]
View answer162. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 714 of 5 November 2013, if he will outline in detail the number of staff who have transferred to Irish Water from local authorities; the number from other public sector positions; the number who now earn more than they did under their previous terms and conditions; and if he will make a statement on the matter. [3390/14]
View answerI propose to take Questions Nos. 158 and 162 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.
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. The Water Services (No. 2) Act 2013 transferred statutory responsibility for water services to Irish Water and provided 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 remain employees of local authorities working under such arrangements from 1 January 2014. As such, no staff transferred from local authorities or from other public sector positions to Irish Water.
Any employees of Irish Water who came from the local authority sector or from the public service sector immediately prior to taking up a post with Irish Water applied for advertised posts and were recruited through a competitive process.
Irish Water is currently recruiting to build up the internal capabilities required within the organisation and the number of staff employed is an operational matter for 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. Data supplied by Irish Water indicate that at present 310 staff appointments have been made in Irish Water. The breakdown of these staff in terms of their employment immediately before recruitment is as follows: 59 were recruited from Bord Gáis Éireann; 107 from Local Authorities; 5 from my Department and the balance, 139, were externally recruited.
I and my Department will not necessarily have access to details of expenditure and other organisational matters in relation to Irish Water. In this context, and to support and assist public representatives in their role, my Department has requested Irish Water, on behalf of myself and Minister O’Dowd, to take early action to ensure that public representatives are regularly briefed on matters pertaining to the organisation and operation of the utility. Irish Water is currently considering how best to support and respond to the Parliamentary and public representation needs of elected representatives at national and local level.
Pending the establishment of these arrangements, my Department requested the information sought in the questions from Irish Water in relation to salaries and I can indicate that the salaries of the 310 employees of Irish Water can be broken down as follows:
|
Salary |
Staff |
|
Less than €70,000 |
183 |
|
€70,000 - €79,999 |
42 |
|
€80,000 - €89,999 |
35 |
|
€90,000 - €99,999 |
21 |
|
€100,000 - €124,999 |
19 |
|
€125,000 - €149,999 |
9 |
|
Over €150,000 |
1 |
|
- |
310 |
The employment terms and conditions for Irish Water staff are a matter for the company and I understand that these are in line with the arrangements applying with Bord Gáis Éireann. Bord Gáis has in place a competitive market based pay model. The model offers market based pay ranges for all employees which includes a pay at risk element called Performance Related Award (PRA). A pay freeze will remain in place until 2016 as this is a key element of reducing overall payroll costs within the Group. As such, Irish Water does not pay increments or any form of automatic pay award; the pay model applied allows for part of salaries to be placed at risk and this element of pay is only earned subject to performance.
In this model, where an employee does not meet expectations they will not be eligible for a performance award and underperformance will be dealt with under the Irish Water Disciplinary Procedure and will lead to sanctions up to and including dismissal. Performance pay will be based on a structured performance review and requires company performance, business unit performance and individual performance metrics to have been met.
I also understand that no bonuses have been paid to Irish Water staff, but I have asked the company to set out the basis and content of the model as applied to Irish Water contracts of employment, including the criteria against which high performance will be evaluated and the kinds of targets (at company and division or grade levels) against which such performance may be bench-marked.
To date Irish Water has provided my Department with the following information in relation to the arrangements on the performance related award, which is applied across Irish Water as follows and does not apply to the Managing Director of Irish Water:
|
Staff Numbers |
Maximum % of Performance Related Award included in contract
|
|
50 |
2.75% |
|
165 |
6.5% |
|
65 |
14% |
|
29 |
15% |
|
309 |
|
The amount of the performance pay will be a function of corporate performance, business unit performance and individual performance. The figures outlined above illustrate the percentage to be allocated if an individual receives a 'Fully Meets Expectations’ performance rating. When an individual receives a “Does Not Meet Expectations” performance rating, no award will be made.
159. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 712 of 5 November 2013, if he will outline in detail the number of staff in Irish Water who have been provided with a car; the level of management at which they receive a car; the type of car to which they are entitled; and if he will make a statement on the matter. [3387/14]
View answer160. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government the number of staff in Irish Water that have been provided with a credit, debit or charge card; if he will outline the spending limit for each issued card; if he will provide details of the person it was issued to and their responsibilities; the criteria for using these cards; if he will also provide in tabular form for each person the amount spent on each card in 2013, and in 2014 to date respectively; and if he will make a statement on the matter. [3388/14]
View answer161. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 713 of 5 November 2013, if he will outline in detail the fringe benefits, other than salary, health insurance or other perks that staff in Irish Water received; and if he will make a statement on the matter. [3389/14]
View answerI propose to take Questions Nos. 159 to 161, 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 (Honda CRV) on terms determined by the Company.
I and my Department will not necessarily have access to details of expenditure and other organisational matters in relation to the company. In this context, and to support and assist public representatives in their role, my Department has requested Irish Water, on behalf of myself and Minister of State O’Dowd, to take early action to ensure that public representatives are regularly briefed on matters pertaining to the organisation and operation of the utility. Irish Water is currently considering how best to support and respond to the Parliamentary and public representation needs of elected representatives at national and local level.
Pending the establishment of these arrangements, my Department requested the information sought in the questions from Irish Water and I can indicate that nine regional managers working on the domestic metering programme have been provided with leased cars on the basis that they are on-call and may be required to travel twenty four hours a day, seven days a week. The cars are 1.6 diesel engines and the models are: one Kia Optima, one Kia Sportage, two VW Passat, and five Ford Mondeos.
A car allowance of €10,500 is paid to twenty seven Senior Managers who are required to use their own cars in the course of their duties with Irish Water. This is a fully taxable non-pensionable allowance, subject to tax, PRSI and USC. This is in lieu of the payment of mileage expenses as would pertain in other circumstances, as the company views this as a more cost-effective option.
Irish Water has confirmed that while no member of staff has a debit or charge card, two credit cards have been issued for business use in Irish Water. These cards are for company purchases or costs on behalf of the business. The cards have been issued in the name of the Managing Director and the Head of Customer Operations. In 2013 approximately €10,000 was spent on each card. The only commitment to date in 2014 relates to an amount of €375. Irish Water is preparing a breakdown of the various payments, which they will directly issue to the Deputy.
The holder of the card does not approve the payment of the credit card bill, in other words, there is a further sign-off as part of the approvals process. All charges to the credit card must be accompanied by supporting documentation
Irish Water provides health insurance of VHI Plan C or equivalent for nine of its Senior Executives, no other staff benefits are in place.
