Mr. Derek Moran:

This is a relatively simple transaction. Irish Water was meant to be commercial and was a commercial borrowing authority. It borrowed at commercial rates and paid interest on the borrowings. The body was then deemed not be commercial and it was on the State's balance sheet. The State can borrow a whole lot cheaper. What the State did was intervene and replace commercial debt with sovereign debt, with no impact on the overall balance sheet, which saw €758 million going in and €758 million going out, bearing in mind the position on costs and general government expenditure. The longer-term debt-servicing cost is cheaper. In the round, it is. It can look very complex but, in substance, it is not.