I propose to take Questions Nos. 106 and 107 together.
The Government decided in December 2011, based on the recommendations of an independent assessment, to establish a public water utility company, Irish Water, to take over the operational and capital delivery functions of local authorities in the water services area. Following further consideration as to whether Irish Water should be established as a new entity or whether existing bodies in the Semi State sector could undertake the function, the Government decided that Irish Water should be established as an independent state owned company within the Bord Gáis Group. The proposed public utility model represents a major change with significant implications for local government, the water industry in Ireland and its many stakeholders. Bord Gáis Éireann (BGE) has key capabilities that can be brought to bear in the establishment of Irish Water, and these 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.
A phased transition is proposed to ensure continuity of service and the building of a fit for purpose organisation within a reasonable timescale, and it is also expected that Irish Water will maintain a strong regional and local focus for operational delivery. Service level agreements will be put in place between Irish Water and local authorities and these arrangements will be place until 2017 at the earliest. This will ensure a smooth transition to the new model and guard against the loss of local expertise. It will also mean that the majority of staff will remain in the direct employment of local authorities for a considerable period. The Department has had initial engagement with ICTU, and there will be detailed engagement with Staff and Trade Unions in the rollout of the proposed changes.
Work is now focused on the finalisation of an implementation strategy which will address transformation planning in more detail. The implementation strategy is being developed in collaboration with other relevant Government Departments, local authorities, BGE and NewERA. This strategy will provide the platform for dealing with a broad range of implementation issues during the transitional phase, including dealing with matters which cross the boundaries between Irish Water functions in relation to water services and those functions which will remain the responsibility of local authorities or other State bodies which impact on the water environment. The rollout of the strategy will also involve co-operation with local authorities and staff to ensure that the change is managed well. The strategy will 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.
