Ms Eileen Fitzpatrick:

I will provide some context for the report. It is primarily about the most cost-effective way currently for Irish Water to fund its commercial facilities in the context of the decision by EUROSTAT and in light of the suspension of domestic charges. The report looked specifically at the cost of current commercial facilities for Irish Water, which are on a one-year basis, and compared it with what the State is funding on a one-year basis. Based on an interest rate of 1.4% for Irish Water and -0.4% for the State, we would calculate that this amounts to an interest rate saving of about €14 million for the State so that is the primary context for the report.

On longer term funding rates for the State, Irish Water is not funding long term. Under any circumstances, in the usual order of merit State funds are cheapest. Semi-State and commercial semi-State bodies fund with a premium, while Irish Water is in a different phase of its development. If we compare the five-year cost of debt for Irish Water hypothetically because it is not currently funded with the cost of five-year debt for the State, it is cheaper for the State. From its perspective, given current circumstances, for the foreseeable future the most cost-effective way of funding Irish Water is through the State.