Mr. Fergal Mulligan:

I will take these questions. We play a role as a regulator to oversee the regulatory framework of Uisce Éireann. In terms of individual capital projects we only have a role in so far as whether it is expenditure efficient. We also place incentives to deliver as much as possible as fast as possible to ensure safe and secure reliable water is delivered. Large projects are covered under the public spending code, similar to other projects. This is under the auspices of the Department of housing. When it comes to the likes of the water project to the Shannon, we were involved in it under gate 1 of the public spending code and we prepared a report based on expert advice we received from a firm based in England, which is an expert in water delivery. The gate 1 process of the public spending code examined whether there was a business case for the water supply project. The outcome of this - the report is publicly available - was a resounding absolute yes. Dublin will have real problems in terms of water supply in the coming ten, 20 and 30 years. Obviously the population growth of Dublin has been such that we have a huge amount of water coming from the Ballymore Eustace plant and off the Liffey.

This is far more than is possible to have over the next 40 years with further expansion. From the business case for the water supply project, it is clear it is required but, in tandem with that, Uisce Éireann is doing huge amounts of work in terms of leakage programmes across Dublin and all parts of the country to remove leakages from what is, as we all know, a very old water system. That is where the €16 billion comes in. There are massive projects under way across the greater Dublin region. There is a big project in Limerick and then there is the water supply project.

In terms of comparisons with the hospital, etc., the board and the executive of Uisce Éireann are the sanctioning authority and the approving authority. They are fully responsible for the oversight of those projects and they report to the Department. Ex post, we would look at all expenditure, including those projects under the regulatory framework, to make sure whatever they spend is spent efficiently, that the needs case is there and that it is reflected in prices when it comes to non-domestic projects.