Michael Healy-Rae (Kerry South, Independent)
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Question 469: To ask the Minister for the Environment, Community and Local Government his views on a matter (details supplied) regarding Irish water. [9785/12]

Fergus O'Dowd (Louth, Fine Gael)
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The Programme for Government provides for the establishment of a new State-owned national water authority to take over responsibility for managing and supervising investment in water services infrastructure and to manage the domestic water metering programme. The Memorandum of Understanding between Ireland and the EU/IMF commits Ireland to undertaking an independent assessment of the establishment of such an authority.

PricewaterhouseCoopers were appointed to undertake this independent assessment, the purpose of which is to examine existing organisational arrangements in the water sector and consider the most appropriate assignment of water functions for the future. As part of this process, they consulted with a range of stakeholders, including the Irish Congress of Trade Unions, the County and City Managers Association and the local authority elected members representative associations.

Based on the assessment of the current structure, international benchmarks and stakeholder soundings, the independent assessment recommends that Irish Water be created as a public utility in a regulated environment. The study recognises that the strengths of the current system lie, inter alia, in the experienced workforce who know the assets, are close to their customers, are accountable for quality and the ability to mobilise local resources at times of need. Irish Water will have to build on these strengths of the existing system. Consequently Irish Water, although a national company, will have a regional and local focus and a phased transition is proposed to ensure continuity of service and the building of a fit for purpose organisation within a reasonable timescale.

The Government launched a six week public consultation on the proposed reforms which ends on 24 February 2012. In this context, the Government has sought views on the development of an implementation plan for the public water utility and, in particular issues arising from an organisational, human resources and environmental perspective in the transitional phase. My Department has also engaged in a further round of consultations with key stakeholders, including the Irish Congress of Trade Unions, as representatives of the workers in the sector.

Michael Healy-Rae (Kerry South, Independent)
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Question 470: To ask the Minister for the Environment, Community and Local Government his views on a matter (details supplied) regarding the new water board; and if he will make a statement on the matter. [9787/12]

Fergus O'Dowd (Louth, Fine Gael)
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The Programme for Government provides for the establishment of a new State-owned national water authority to take over responsibility for managing and supervising investment in water services infrastructure and to manage the domestic water metering programme. The Memorandum of Understanding between Ireland and the EU/IMF commits Ireland to undertaking an independent assessment of the establishment of such an authority.

The first phase of work on the independent assessment has been completed, the phase 1 report and a position paper setting out proposed reforms in the water sector has been published as part of a public consultation which will conclude on 24 February 2012. The independent assessment concludes, based on an analysis of the strengths and weaknesses of the current system, international experience and stakeholder soundings, that Irish Water should be created as a public utility in a regulated environment. 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.

In developing the implementation plan for the proposed reforms, further work is being undertaken by my Department and NewERA on whether, and in what manner, skills within the State sector can be harnessed for the successful implementation of the proposed water sector reforms. This does not involve exploration of any models involving the sale of Irish Water to multinational companies. I am not aware of any interest from any private companies in taking responsibility for water or wastewater services. The Government has made it clear that Irish Water is to remain in public ownership.