Mr. John McCarthy:

That is the only qualification I want to make. This issue arose when water service related legislation was before the line committee, from memory, in late 2017 and early 2018. I think the Minister indicated that he was favourably disposed towards exploring the potential for the Comptroller and Auditor General to play a role. Again, the Comptroller and Auditor General can either correct or contradict me on anything I say, in case I am not entirely accurate, but there are a number of complexities. Irish Water has been established under company law as a company and its accounts have to be audited by what is called a statutory auditor. For these purposes the Comptroller and Auditor General is not a statutory auditor. The matter is also complex in the sense that Irish Water is a subsidiary of Ervia, the accounts of which also have to be audited. They are dealt with in accordance with the Companies Acts.

There is a third issue that needs to be considered, not so much perhaps from a formal audit point of view but from the point of view of value for money, similar to what the Comptroller and Auditor General might do in the case of the bodies he audits. There are value for money review arrangements in place through the Commission for the Regulation of Utilities. All of Irish Water's operating expenditure and capital plans have to be submitted to the commission which has to approve them. It will only approve expenditure that it regards will be efficiently incurred. There is a very elaborate value for money regime in place through the commission. These issues are being looked at, but that is one of the matter that obviously will need to be considered.