Dáil Éireann Debate, Thursday - 3 May 2012
12 Deputy Pádraig Mac Lochlainn asked the Minister for the Environment, Community and Local Government if he will provide a detailed breakdown and timeframe for the cost of running Irish Water. [22119/12]
Amharc ar fhreagra15 Deputy Willie O’Dea asked the Minister for the Environment, Community and Local Government the other State agencies that were reviewed in the independent internal assessment of agencies to take over Irish Water; the agencies that were requested to make and that made submissions; and if he will make a statement on the matter. [22085/12]
Amharc ar fhreagra18 Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government if he will provide a detailed cost for the establishment of Irish Water. [22123/12]
Amharc ar fhreagra57 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if he will outline the role of NewERA in Irish Water; and if he will make a statement on the matter. [21907/12]
Amharc ar fhreagraI propose to take Questions Nos. 12, 15, 18 and 57 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.
The Government decided in December 2011, based on the recommendations of the independent assessment undertaken by PricewaterhouseCoopers, 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 certain issues raised in the independent assessment 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 my Department 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 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, with water services remaining in public ownership.
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. A more detailed implementation strategy for Irish Water is now being developed to give further effect to the Government decision of 17 April. NewERA are participating in the steering group to develop this strategy.
A detailed breakdown for the cost of establishing and running Irish Water is not at present available. The Government has also decided that the Commission for Energy Regulation will be responsible for the independent regulation of Irish Water and that the Commission will be responsible for determining the cost of water services to the consumer. The finalisation of the implementation strategy will focus on implementation and transformation issues involved in the creation of the new public water utility and will recommend appropriate transitional arrangements. The strategy will also focus on maintaining the delivery of a critical public service during and following a restructuring process, and will give further clarity on the next steps that will be taken in this reform process.
