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Water Services

Dáil Éireann Debate, Tuesday - 24 April 2012

Tuesday, 24 April 2012

Ceisteanna (390, 391, 392, 393, 394, 395, 396, 397, 398, 399, 400, 401, 402, 403)

Niall Collins

Ceist:

482 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if he has prepared an impact analysis of incorporating Irish Water as a sub entity of Bord Gais in view of plans to part privatise that company; and if he will make a statement on the matter. [20239/12]

Amharc ar fhreagra

Niall Collins

Ceist:

509 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the basis for the awarding of the water services contract to Bord Gáis; and if he will make a statement on the matter. [20312/12]

Amharc ar fhreagra

Stephen S. Donnelly

Ceist:

510 Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government his plans and schedule for the establishment of a national water company, water metering and water charging; the cost benefit analysis that has been carried out on the establishment of the national water company; and if he will provide a copy of same. [20314/12]

Amharc ar fhreagra

Stephen S. Donnelly

Ceist:

512 Deputy Stephen S. Donnelly asked the Minister for the Environment, Community and Local Government if he will provide a full report on the tendering process for the contract to run the Irish Water company; the number of entities that competed for the tender and the public sector, semi State or private sector breakdown. [20316/12]

Amharc ar fhreagra

Niall Collins

Ceist:

515 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if he will publish all papers submitted to him in coming to a decision to grant the water services contract to Bord Gáis; and if he will make a statement on the matter. [20335/12]

Amharc ar fhreagra

Niall Collins

Ceist:

531 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the process followed before making his decision to transfer responsibility for the country’s water and waste water services to Bord Gais; and if he will make a statement on the matter. [20609/12]

Amharc ar fhreagra

Niall Collins

Ceist:

532 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the reason he rejected the bid by Bord na Mona to take responsibility for water and wastewater services; and if he will make a statement on the matter. [20610/12]

Amharc ar fhreagra

Niall Collins

Ceist:

533 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the reason he ruled out the establishment of a stand alone water and wastewater company; and if he will make a statement on the matter. [20611/12]

Amharc ar fhreagra

Niall Collins

Ceist:

534 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the reason he ruled out the establishment of a mutual model water company as represented by Welsh Water; and if he will make a statement on the matter. [20612/12]

Amharc ar fhreagra

Niall Collins

Ceist:

535 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if he will publish the business cases presented by Bord Gáis and Bord na Mona; and if he will make a statement on the matter. [20613/12]

Amharc ar fhreagra

Niall Collins

Ceist:

536 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the limits he has imposed on the budget for consultancy fees relating to the transfer of water and wastewater services to Bord Gáis; and if he will make a statement on the matter. [20614/12]

Amharc ar fhreagra

Niall Collins

Ceist:

537 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the amount that was spent on the report by consultants PwC on what was the optimum model for a new Irish water organisation; and if he will make a statement on the matter. [20617/12]

Amharc ar fhreagra

Niall Collins

Ceist:

538 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if any other expert advice or consultancy support was sought by him or his Department on what would be the optimum model for a new Irish water organisation; and if he will publish any such advice. [20618/12]

Amharc ar fhreagra

Michael Healy-Rae

Ceist:

546 Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government if he will give a commitment that he will not sell off the Irish Water Board at any stage in the future; and if he will make a statement on the matter. [20636/12]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 482, 509, 510, 512, 515, 531 to 538, inclusive, and 546 together.

The Programme for Government includes a proposal to establish Irish Water, a State-owned water company that will take over the water investment and maintenance programmes of the 34 city and county councils who act as water services authorities.

The Programme of Financial Support for Ireland with the EU/IMF/ECB also requires the preparation of proposals for implementation of the recommendations of an independent assessment of the transfer of responsibility for water service provision to a water utility and that water charges would be introduced.

A team led by PricewaterhouseCoopers was appointed through an open competition to conduct the independent assessment. The full cost of the study is €107,800 excluding VAT. The first part of this study, The Irish Water: Phase 1 Report, was published in January 2012 together with a Departmental position paper setting out the overall approach to reforms in the water sector; copies are available on my Department’s website. These publications were part of a consultation process to inform the implementation phase. A sum of €49,000 of the consultancy fee (excluding VAT) was paid in 2011 and the balance is due to be paid during 2012.

The independent assessment concluded, based on an analysis of the strengths and weaknesses of the current system, international experience and stakeholder soundings, that a public utility offers the best opportunity to improve the efficiency and effectiveness of water services delivery, provide access to new funding sources, and improve strategic planning and accountability. No other model examined by the consultants would offer the same advantages.

The independent assessment, while recognising that there were potential advantages to leveraging the structure, expertise and governance of an existing State agency in the establishment of Irish Water, also foresaw certain issues which would have to be satisfactorily addressed in such circumstances, and, on balance, recommended that Irish Water should be established as a new entity.

The Government decided in December 2011, based on the recommendations in the independent assessment, to establish a public water utility company to take over the operational and capital delivery functions of local authorities in the water services area. The Government also decided that the issues raised in regard to whether Irish Water should be established as a new State Agency or whether the role of Irish Water should be assigned to an existing State Agency should be analysed further with a view to ensuring that existing resources and capabilities in the State sector were used to best effect. This approach is also in line with Government plans to support economic growth by eliminating waste and duplication in public spending through rationalising state agencies.

The further analysis was undertaken by a team comprising the Department of the Environment, Community and Local Government and NewERA, in consultation with the Department of Communications, Energy and Natural Resources. The process involved an assessment of the capacity and capabilities of a number of State agencies from amongst those identified in the independent assessment as having the potential to incorporate a new water utility. It was not a tendering process culminating in the award of a contract. The process involved the making of detailed submissions and presentations by Bord na Móna and Bord Gáis Éireann (BGE) based on identified capabilities required for the establishment and operation of Irish Water.

The outcome of this analysis is that Irish Water should be established as an independent state owned company within the Bord Gáis Group. This was agreed by Government at its meeting on 17 April 2012. Irish Water will be a public utility, wholly owned by the State. The water service will remain in public ownership as is the case in most countries in Europe and further afield.

BGE has key capabilities that can be brought to bear in the establishment of Irish Water, including experience in operating as a utility in a regulated environment and a track record in raising finance, and has specific skills from its own experience of transformation, customer relations, network management, metering and utility operation that can be quickly deployed to assist in the successful establishment and operation of Irish Water. The skills within the Bord Gáis Group will be paired with the experience and commitment to service in local authorities and the specific water and wastewater capabilities and expertise that exist in local government to build the new organisation.

The submissions made by both BGE and Bord na Móna are confidential and commercially sensitive and their publication, in part or in full, would require the prior approval of the companies concerned.

The initial transition strategy for the establishment of Irish Water as a public utility as recommended in the independent assessment envisages a staged approach involving local authorities acting as agents of Irish Water for a period with Irish Water taking over their operations on a phased basis from January 2015, and the full transfer of operations being completed by end 2017, at the earliest. An implementation strategy for Irish Water is now being developed to give further effect to the Government decision of 17 April.

In the context of the Government's commitment under the Programme for Government and the EU/IMF Agreement in relation to State assets, the Government has decided to sell Bord Gais Energy, which is a separate business unit of the BGE group dealing with electricity and gas supply as well as power generation. The Government has also reiterated its commitment to retaining BGE's gas networks and interconnectors in State ownership. I am confident that Bord Gais will continue to contribute to achieving key Government and national objectives in its ongoing management of the strategic gas infrastructure as well as the sale of the Bord Gais Energy business and the establishment of the new Irish water utility.

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