Oireachtas Joint and Select Committees

Tuesday, 14 January 2014

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Expenditure Issues: Irish Water - Uisce Éireann

5:35 pm

Photo of Labhrás Ó MurchúLabhrás Ó Murchú (Fianna Fail) | Oireachtas source

The answers we have received today will allay some of the fears in the public domain. In the light of these answers it seems that the Minister was privy to all of this information when he refused to give it in response to parliamentary questions. Following that refusal, a vacuum was allowed to develop, in which a controversy arose, which has to be a distraction for Uisce Éireann. In the testimony we have heard today the delegates have mentioned that Uisce Éireann will always abide by the decisions of the Government. Will Mr. Tierney confirm that he has no objection to the Minister deciding in the future to put information he has received from Uisce Éireann on the public record? It is important to have that point clarified.

There is a lot of unrest in local authority areas regarding possible redundancies. Mr. Tierney has outlined that there will be no compulsory redundancies. Was this matter discussed during the engagement with 34 local authorities because I take it that redundancies could be a matter for local authorities rather than Uisce Éireann? It would be helpful to have that matter clarified.

While the assets being transferred, whether they are worth €11 billion as put forward by the local authorities or whatever figure is brought forward subsequently, I understand pension liabilities will not pass from the local authorities to Uisce Éireann.

Can Mr. Tierney elaborate on that point as I presume this has formed part of the discussion with the Department and with the local authorities? In the discussions which have taken place in the Oireachtas on that matter it would seem as if the assets were being taken from the local authorities - €11 billion would be very substantial - but liabilities relating to pensions would remain with the local authorities. Can Mr. Tierney expand on that point also?

As regards the projected €2 billion savings to the Exchequer, what is meant by savings? Are these to mean savings on investment in water services by the Department and investment by local authorities? Is it a profit situation of €2 billion coming forward from Uisce Éireann in the year to which Mr. Tierney referred? If that is the case, obviously this must be based on projected usage of water. To date, we do not have any report from the regulator as to the costs. If that is the case, how are we to estimate what the income is likely to be? If it is based on income, that income will be taxpayers' money. There is quite an amount of concern because we understood that the new arrangement was not just about the generation of income, it was also about saving water which in turn will result in less income. I ask Mr. Tierney to expand on where that €2 billion is coming from and what is the precise meaning of "savings". If we had that on the record it might be helpful.

Today's exercise has been good and helpful, and we would have had a meeting on the broader issues in February, but to what extent would today's exercise have been necessary if all the information had been placed on the floor of the Oireachtas when it was requested originally?

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