Oireachtas Joint and Select Committees

Thursday, 22 February 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

Irish Water: Discussion

9:30 am

Ms Maria Graham:

I will address two of the questions. The Deputy said I did not mention transparency. In that context, I was highlighting particular issues that had arisen and that were reflected back to the parties following the Minister's conversations with them. The water advisory body I mentioned, specifically set up under the 2017 legislation, has a specific role, flowing from the confidence and supply agreement, to consider measures needed to improve the transparency and accountability of Irish Water and to advise the Minister accordingly. That is reflected in section 44 of the Water Services Act. Transparency, accountability and good governance are part and parcel of Irish Water.

On the issue of the stand alone utility, as raised by the Deputy, the Government decided in 2012 to ask what was then Bord Gáis, now Ervia, to establish Irish Water as a company within its group structure. This has been reflected in water services legislation. This approach was based on the advantages of leveraging the utility experience of the group with the experiences and capability of local authorities in order to build the new organisation.

Securing the benefits, efficiencies and synergies from that common utility approach to water and gas business remains an important dimension of Ervia's functions. Irish Water produces separate accounts. It is separately regulated by the Commission for Regulation of Utilities. The documentation that goes to the regulator very clearly outlines our group services costs and shared costs. These are commented on and considered by the regulator. Therefore, there is transparency regarding the services that the group and shared services give to Ervia. At the same time, there has been an understanding from the outset of the establishment that flexibility would need to be maintained should the Government decide at a future date that Irish Water should be a stand-alone public utility. That is reflected in the shareholder expectation letter to Ervia and influences matters that I have mentioned, such as the corporate structure, accountability and financial reporting. Any decision to separate the two would be based on an assessment of what was is the best strategic interest in respect of water and gas. The Government has not considered separation to date.

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