Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

Irish Water was established as a semi-State company because we wanted to borrow money on the markets as we do not, and will not for a few years, have money under the public capital programme for obvious reasons. To cater for the big demand that there is for water in areas where there is pressure, including in the areas represented by Deputies Cowen, Catherine Murphy, Stanley and, in particular Kevin Humphreys - Deputy Coonan does not want water coming from the River Shannon to Dublin to meet this demand - we have to borrow the money on the markets and must have a stream of income to repay those loans. That is the purpose of the water charges. We are extending water charges by way of meter from the business and group water sector to the remainder of water users in the country. It is not a popular decision but it is what we have to do. I have no doubt that as a result of the introduction of water meters there will be a reduction in demand for water and the amount of water being used. The experience in the group water sector was an immediate reduction of 20% to 25%, which is huge.

That will happen in many cases because when people do not pay by metering, they will have less respect for the resource. The recent experience at Ballymore Eustace clearly indicates that there will be difficulties in providing a very good quantity of the resource in the years ahead. As Deputy Catherine Murphy should know better than anybody, if one wishes to provide for the expansion of Intel and many other companies in her constituency, good quality water will be required and that costs money.