Mr. John Mullins:

On the final issue to which the Deputy referred, we have had many engagements with our counterparts in Northern Ireland. The regulator for water in Northern Ireland also has responsibility for regulating the gas market. We are very active in terms of our engagement with that regulator. We have engaged in conversations about the regulatory structure and we are aware of some of the issues that arose in respect of water in Northern Ireland. I can inform the Deputy that the companies involved in the privatisation of UK water utilities did not enjoy the smoothest of rides for many years, particularly in the context of the acceptance of new charges. The latter actually proved to be quite an issue in Britain.

As I told Deputy Stanley, we are aware of only one alternative project. If there are other projects that will, on a least-cost and appropriate environmental basis, meet the requirements on the eastern seaboard, then as a company we would be quite open to seeing what they have to offer. Any project of that scale will have to be subjected - on a strategic basis - to a full economic and environmental assessment. This does not take away from the fact that a need exists and that we will have to meet it. We must ensure that we proceed in the appropriate way in this regard.

I have been lobbied in respect of fluoridation. I am aware there has been quite an amount of debate on this subject. In the main, this is a matter for the EPA. The latter will still have environmental governance in respect of both water quality and the addition of chemicals to water supplies. I understand that local authorities have different policies on fluoridation. Those policies will have to be harmonised. We are not empowered to take on that issue at present. We will not be so empowered until at least the third quarter of next year. We certainly want to engage on it with the committee, with local authorities and with groups that are concerned about fluoridation.

The EPA produced an environmental assessment earlier this year and while we performed very well in comparison to our counterparts across Europe in the context of levels of phosphates, nitrates and chlorophyll in our water, there are still quite a number of issues which need to be addressed. The assessment to which I refer indicates that 57 waste water treatment works are creating problems in terms of pollution. In addition, 46% of waste water treatment works in this country do not meet all of the standards set down by the EPA. This indicates that a significant amount of capital and other resources must be invested in order to improve the position regarding discharges and also the quality of water in river basins throughout the country. The assessment also indicates that 50% of the problems that exist at the sites to which I refer were caused by discharges from waste water treatment works and that the other 50% were caused by diffuse pollution arising from agricultural activity.

We have made real progress in reducing the levels of nitrates and salinity in our make-up water in recent years. However, we still have a long way to go. It will take some time to reduce the levels of salinity in Lough Derg and other lakes. This is because such salinity has built up over many years. We still have quite a distance to travel in respect of water quality and it is unlikely that we are going to meet all of the water framework directive requirements. It must be stated, however, that other European countries are in a worse position and will be obliged to invest a great deal more in order to get their systems up to speed.

In view of the scale of the tender that will be involved here, we have no choice other than to place a notice in the Official Journal of the European Union. We are obliged to do so under European law and we have no choice in the matter. We are aware of companies in this country that can supply boundary boxes but the position with regard to meters is more international in its make-up. We would be very much open to an Irish operator supplying the products required, just as we want local contractors to supply plumbing and fitting capabilities and we want the contact centre to be based in Ireland. For the first time, the latter will be a national lo-call service that will be similar to those provided by Electric Ireland, Bord Gáis, Eircom, etc. These are all new and exciting developments in the sector and they will give rise to the creation of significant employment - to a lesser or greater extent - in all parts of the country. There has already been quite an amount of activity in respect of trying to get the contact centre, which is very large, to a number of locations throughout the country. I hope I have answered the Deputy's questions.