Mr. Feargal Ó Coigligh:

Gabhaim buíochas leis an gCathaoirleach agus leis na comhaltaí as deis a thabhairt dom labhairt ar chúrsaí uisce inniu. I thank the Chairman and committee members for this opportunity to update the committee on progress within the water sector. I am joined by my colleagues, Mr. Eamonn Waters, principal officer, water policy and rural water programme, and Mr. Colin Byrne, senior adviser, water and marine advisory unit.

I note that the committee specifically sought a briefing on developments on the recast directive on the quality of water intended for human consumption. A separate written update briefing has been provided on this matter and we will be happy to deal with any questions arising. The Water Services Policy Statement 2018-2025, published by Government in May 2018, sets out the broad vision for the development of water and wastewater services in Ireland, whether through the public network or otherwise. The statement, with three thematic areas of quality, conservation, and future proofing, is aligned with the river basin management plan for Ireland 2018-2021, Project Ireland 2040 and Rebuilding Ireland. Irish Water published its strategic funding plan 2019-2024, as approved by the Minister on 7 November 2018. Together, the policy statement and the strategic funding plan ensure a shared understanding between Government and Irish Water of the broad financial parameters and investment priorities and we will be happy to expand on these key documents.

The policy statement sets out four key principles that provide a useful framework within which I can update members on developments generally across the sector. The principle of one single publicly-owned national water services authority is consistent with the recommendations made by the Oireachtas Joint Committee on the Future Funding of Domestic Water Services, and the legislative reforms in the Water Services Acts. In July 2018, the Government decided that Irish Water would become a stand-alone, publicly-owned, commercial, regulated utility separated from the Ervia group during 2023. This was considered to be in the best strategic interests of the water services and gas networks businesses. The separation also enhances the heightened level of transparency and accountability required for Irish Water, given the level of Exchequer funding being provided to it. In this context, Irish Water has proposed fully integrating its operations and ending the current operational arrangements for the delivery of water services through service level agreements, SLAs, with local authorities. This, of course, will give rise to significant organisational change for local authorities and their staff.

To this effect, on 19 September 2018, the director general of the Workplace Relations Commission, WRC, reported on a process of engagement, undertaken at the Minister’s request with the parties involved in the transformation programme for Irish Water, including ICTU and relevant affiliated unions, local government management and the Department. In response to the WRC report, the Minister asked the parties to engage in a process to work towards the development of a stable structural and operational framework for the future. This engagement is to commence in the coming weeks.

Outside of the WRC process, the question of a constitutional amendment on the public ownership of water services is an important consideration in the context of the transformation programme. The Minister’s letter of 21 January 2019 to the chairperson of the committee outlines the current position on this matter. We also note the committee's letter to the Minister, which was received this week. The question of improving accountability through a potential role for the Comptroller and Auditor General regarding Irish Water also continues to be explored.

In line with the principle of fair and efficient delivery with a customer focus, the Commission for Regulation of Utilities, CRU, has a statutory responsibility to regulate the efficient delivery of water services in a balanced and even-handed manner that gives certainty and stability for customers and for Irish Water. The approved strategic funding plan for 2019 to 2024 sets out Irish Water’s multi-annual strategic funding requirement of €11 billion to 2024, comprising a €6.1 billion investment in infrastructure and assets and €4.9 billion in operating costs. This certainty about the level of Government funding will give Irish Water a reasonable time horizon to plan and work towards achieving cost efficiencies and service improvements during this period.

The CRU is also overseeing Irish Water’s policy proposals for addressing excess use of water services by domestic customers, as required under the Water Services Acts. The amount to be charged for excess use will be determined by the CRU, informed by a public consultation commencing shortly. The aim of this measure, as envisaged by the Oireachtas committee, is to encourage water conservation rather than to generate revenue. We can discuss this in more detail if required.

On broader issues of public health and the quality of our environment, the Government approved the general scheme of a water environment (abstractions) Bill to bring us into compliance with the abstraction control requirements of the Water Framework Directive. This will also ensure that there is an appropriate legal framework and a consent process in place to facilitate critical capital projects such as Irish Water’s eastern and midlands water supply project to serve the Dublin and mid-east regions. The current expected timeline would see legislation published by summer 2019. The CRU, as economic regulator, has been asked to review Irish Water’s proposed approach to the eastern and midlands water supply project. The review report is expected later this year.

At a more general level, the important research, analysis and monitoring work undertaken by the EPA has shown that, over the past decade, the quality of our water has stood still, at best, with some concerning indications of decline in certain areas. The European Commission has taken infringement cases against Ireland regarding the urban wastewater treatment directive and the drinking water directive. Of the urban areas where wastewater works are required, the majority will be compliant by end-2021, including Ringsend, which is the single largest wastewater treatment plant in the country, accounting for 41% of the total wastewater load.

Regarding the drinking water directive, Ireland has made significant progress in addressing THM, or trihalomethanes, exceedances at public water supplies managed by Irish Water. THMs are formed when chlorine used in drinking water treatment reacts with natural organic matter that remains following pre-treatment processes. Full compliance is expected to be achieved by the end of 2021, with the exception of the Lough Talt regional water supply scheme where particular planning difficulties arise. Irish Water has put in place new procedures for informing consumers of water quality issues where they are served by supplies listed on the EPA remedial action list.

It is essential that we take strong steps to protect and improve our water quality. The River Basin Management Plan for Ireland 2018-2021, published in April 2018, sets out a range of detailed actions and implementing measures. Several specific actions are to be undertaken or are under way, involving local authorities and a range of State agencies. We can expand on this area as required. Public engagement on the next cycle of river basin management plans, to cover the period from 2022 to 2025, is also under way.

I want to conclude by making a brief mention of some recent developments which serve to strengthen public and stakeholder engagement. The Water Advisory Body is now up and running on a statutory basis. It has been empowered to advise the Minister on the measures needed to improve the transparency and accountability of Irish Water and to report to the Oireachtas on the performance of Irish Water in the implementation of its business plan.

An Fóram Uisce, the national water forum, is now place. The purpose of the forum is to provide a national stakeholder-led platform for public engagement on all matters relating to water as an environmental, social and economic resource. The forum provides an opportunity to debate and analyse a range of issues with regard to water quality, rural water concerns and issues affecting customers of Irish Water and the implementation of the EU Water Framework Directive in this jurisdiction.

Last week, the Minister, Deputy Eoghan Murphy, announced a revised multi-annual rural water programme. The improved capital programme of €23 million in 2019 provides for increased capital investment in group water schemes, a new grant measure for the development of community water services connections and enhanced grant schemes for private wells and septic tanks. A total of €75 million has been committed under the national development plan to 2021. I have addressed some of the more significant recent developments in my remarks and I and my colleagues are happy to respond to any questions.