Oireachtas Joint and Select Committees

Tuesday, 11 February 2014

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Standards of Service in Water Supply: Irish Water and CER

3:10 pm

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

No problem. Mr. Tierney can note that one. On staffing levels, as Mr. Tierney knows, Irish Water has entered into a 12-year service level agreement with 34 local authorities and the staff of local authorities conducting work under these arrangements will remain local authority staff. The head count for 2014 for service level agreements is 4,320, but will Irish Water also employ an additional 520 staff? Irish Water and others have continued to state that they will achieve €2 billion in cost efficiencies by 2021. The ESRI report by Dr. FitzGerald estimated excessive staffing costs if staffing levels went beyond 1,700. However, I am not sure that 1,700 figure was crystallised. Dr. FitzGerald referred to Scotland and I understand the water authority in Scotland has 4,000 staff, not 1,700. What is Irish Water's position on these figures? Does he think a staff of 1,700 is sufficient or does he think we require 4,000 or 4,800 or for how long should this be the case? Has Irish Water carried out any assessment of natural wastage or the loss of staff over time and what the position will be by 2021? Is it correct that Irish Water staff will benefit from a bonus system similar to that in the parent body, Bord Gáis, and will be eligible for payments up to €7,000? Will bonus payment criteria and numbers be made available publicly over time?

My main query relates to the €2 billion efficiencies that Irish Water, the Taoiseach and the Minister have said will be achieved by 2021. What percentage of that €2 billion is made up of water charges? What will the savings be if staffing levels remain in place? In other words, the €2 billion savings has two elements, water charges and savings relating to staff. Has Irish Water calculated these or can it give us an estimation or indication of these savings?

I guess the issue of water pricing relates to the regulator. Unfortunately, I must refer to the set up cost of €185 million and the €82 million within that for consultancy costs. The Department says it dealt directly with Irish Water in regard to the submission it made to establish and agree those costs before making them available to Bord Gáis when it went about the process of setting up Irish Water. The Minister has explained that he would not have had access to the minute detail of those figures, although he said he passed them on to the regulator. Correct me if I am wrong, but is Mr. McGowan quoted directly in saying that on his initial review of the establishment costs last year, he was not aware of the amount involved in consultancy costs?

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