Mr. Feargal Ó Coigligh:

There are a couple of points relating to value for money. The Senator is absolutely right. One of the issues to bear in mind is that the Oireachtas, in its wisdom, set up a model where Irish Water is subject to significant scrutiny. We saw yesterday that the Environmental Protection Agency brought Irish Water to court for a discharge. An Fóram Uisce is a general consultative body that oversees Irish Water, and the Oireachtas set up a water advisory body specifically to oversee the performance of Irish Water. One of the most powerful tools is the Commission for Regulation of Utilities, which pays very close scrutiny to the efficiency of Irish Water and the delivery of investment.

It has done very important work to hold Irish Water to account. For example, there have been issues regarding projects being delayed and timelines slipping, and as a result of criticism from the Commission for Regulation of Utilities, Irish Water commissioned an independent report from Scottish Water International to look at its systems. As a company and as a utility, it is improving performance all the time. From where the Department sits, we have seen it come on a journey, and there is a way to go.

That leads me to the second point. Senator Fitzpatrick is right about the ongoing costs. There will be ongoing costs to companies, but there will be significant savings in the longer term due to a more efficient delivery model. Local authorities have led the way in terms of upgrading Ireland's infrastructure over 100 years since independence, but the sophistication of the equipment and the investment now required cannot be delivered by 31 independent local authorities. That was one of the justifications for the establishment of Irish Water. As it matures and develops as a single company, there will be standardisation across the country. I refer to standard procurement, construction and operational processes. There will be a significant gain. Work is being done on that at the moment in terms of the Workplace Relations Commission, WRC, process and what efficiencies will accrue with the evolution of the employment model. In the medium to long term there will be significant efficiency gains even if there are some additional upfront costs.

If the Government chooses to run a referendum, that would be paid for separately, so that is not included.