Dáil Éireann Debate, Tuesday - 24 July 2018
2662. Deputy Micheál Martin asked the Minister for Housing, Planning and Local Government if he will report on the recent announcement that Irish Water is targeting savings of €70 million further to the Government decision to separate Irish Water from its parent company, Ervia, in order that it becomes a publicly owned utility; and if he will make a statement on the matter. [33405/18]
Amharc ar fhreagra2663. Deputy Micheál Martin asked the Minister for Housing, Planning and Local Government his plans to separate Irish Water from Ervia and allow for Irish Water to be independent; the process of this decision; and if he will make a statement on the matter. [33406/18]
Amharc ar fhreagra2664. Deputy Micheál Martin asked the Minister for Housing, Planning and Local Government when he informed Ervia regarding his proposed changes to Irish Water; and if he will make a statement on the matter. [33407/18]
Amharc ar fhreagra2696. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government his plans to separate Irish Water from Ervia; the way in which this will be done; the anticipated timeline; the engagement that has been held or is planned with staff representatives; and if he will make a statement on the matter. [33822/18]
Amharc ar fhreagraI propose to take Questions Nos. 2662 to 2664, inclusive, and 2696 together.
There has been a common understanding with Ervia from the outset of the establishment of Irish Water that flexibility needed to be maintained should the Government decide at a future date that Irish Water should become a stand-alone public water utility. This view was expressly stated in the Shareholders' Expectation letters which issued to Ervia on 13 January 2016 and on 21 February 2018. The Government recently decided that Irish Water would become a stand-alone publicly owned, commercial, regulated utility, separated from the Ervia Group during 2023. A number of issues were taken into account in coming to this decision, but ultimately it was based on what is in the best long-term interests of the water and gas sectors. The decision also reflected the need to enhance the accountability of Irish Water in the light of the level of State funding it receives.
I contacted the Chair of the Ervia Board immediately following the Government meeting on 12 July 2018 and informed him about the decision and this was followed by a letter to him on 16 July 2018. In that letter, I noted that I will be requesting Ervia to prepare a plan for separation which ensures that momentum is not lost on transformation plans for Irish Water or investment plans for Irish Water and Gas Networks Ireland as envisaged under the National Development Plan. This separation plan will need to ensure that there is stability during the transformation phase and no distraction to the work on major investments.
Engagement with staff and their representatives on the Government's decision on separating Irish Water and the proposed separation plan is a matter for Ervia, GNI and Irish Water.
In relation to the Irish Water transformation programme, the Government did not make any decisions about the transformation process and the proposed ending of the Service Level Agreements between Irish Water and local authorities. These matters are being addressed in the present dialogue process that the Workplace Relations Commission is facilitating at my request. My Department has appraised the parties involved in this dialogue, including the Irish Congress of Trade Unions, about the Government's decision on separating Irish Water and the proposed separation plan. It is estimated that the transformation programme proposed by Ervia/Irish Water will lead to savings of some €70m per annum.
