Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank Mr. Mullins and his colleagues for the presentation. This is our first opportunity to discuss in detail the proposed establishment of Irish Water under the auspices of Bord Gáis and, as such, it allows us to clarify certain outstanding issues. My first question concerns the ownership of Irish Water by the Irish public and taxpayer forever and a day, despite the fact that Bord Gáis is included in the NewERA programme on the sale of State assets. My second point is that today should offer an opportunity to clarify the costs of metering and the costs of water by presenting exact scientific information.

The third point relates to local authority staff and the expertise that has existed in local authorities for many years, which has served the country well. What can the witnesses do or say to ensure the future of those staff within local authorities?

Bord Gáis is due to be partially privatised under the NewERA programme. In justifying his selection of Bord Gáis Éireann over Bord na Móna to operate Irish Water, the Minister gave as some of the key reasons its track record in customer service and its capacity to leverage private sector funding in the future. A couple of weeks ago, the Minister said Bord Gáis Éireann had specific skills gained from its 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. That being the case and with the privatisation of Bord Gáis Éireann, can Mr. Mullins say what impact the loss of key assets and capabilities has on the ability to undertake the establishment of Irish Water?

Both Mr. Mullins and the Minister mentioned that the potential for private sector finance was also a key part of the selection process. The Minister said we must find the money elsewhere and that the private sector had some interest in becoming involved and being part of the public utility company they had agreed to establish. Given the comments on leveraging private sector involvement and the decision to move Irish Water into a body that is earmarked for privatisation, is that simply moving towards a system whereby Irish Water can be sold off in the future when it is up and running? This fear is common among many people in rural and less populated areas. They see themselves at the outer edge of profit making potential because most connections are made in urban areas.

There are contradictory messages being given out as to how much water metering will cost and how much of that cost will be passed on to households. The Taoiseach said in the past the cost would not be passed on to households, a Department official has said it would and the Tánaiste has said that no decision has yet been made on it. After what has been a long debate, the public is entitled to be made aware of what the costs will be. Take for example counties such as Offaly, Westmeath and Laois, where, currently, the cost of maintaining water services and facilities, based on EU directives and regulations, is in the region of €12 million per annum. There are approximately 20,000 houses in each of these counties, indicating a cost per household of €600 to maintain water supply. This does not take into consideration the cost of water metering, the dual charge for the provision of water or the proposed household property tax. These charges are now moving towards €1,500 per annum. If nothing else, this meeting offers the witnesses the opportunity to kill that myth.

Was the capacity to roll out metering by 2014 a key component of the bid by Bord Gáis Éireann for Irish Water? How much will water metering cost per household? It appears the reason the cost cannot be published is that the internal report has not been published. When will that be published? Will households bear the cost? Will local authorities, which have already funded water metering in many areas, be compensated for the initiative they took on the understanding they would be charged with custody of our water system? Fianna Fáil supports keeping custody of our water system within the local authority structure, perhaps on a regional basis rather than on a county basis.

Has Bord Gáis Éireann taken on board the prospect that according to the latest census figures, not the 2006 figures used by PwC in the report, over 500,000 homes will not be suitable for metering? The original figure indicated in the report was 300,000. The most recent census indicates the figure is far in excess of that. With regard to the 60,000 holiday homes and vacant units throughout the country, what is envisaged for these homes? Will these homes be metered and at what cost and expense? Is it necessary to meter these or should there be a flat charge on them?

The employment status of workers currently employed in the water section of local authorities is unclear. The PwC report suggests there will be job losses on the creation of Irish Water. The consultant's report states the number of people employed in Irish Water will be significantly lower than the 4,278 employed today. However, the Taoiseach has denied during Leaders' Questions there is any ongoing confusion on this and other issues. Mr Mullins mentioned also that Bord Gáis Éireann will enter into service agreements with local authorities for the establishment, setting up and commissioning of Irish Water, up to the year 2017. Can he give us any indication of what will happen thereafter? What is the remit of the group that has been set up? Is it its remit only to enter into service agreements up to 2017? If not beyond that, why not?

I may have some more questions to put, depending on the responses. I thank the group for coming. This discussion offers an opportunity to clarify these three main issues.