Mr. John Mullins:

I understand that and that is a matter being dealt with by separately, outside the establishment of Irish Water. That is part of the overall water industry reform programme under the auspices of the Department of the Environment, Community and Local Government. We are involved in the process, but Irish Water is not involved in group water scheme changes or governance. We are involved in the event that schemes want to be connected to the public mains and amalgamated with or subsumed into the Irish Water set-up. However, Irish Water will not take over governance of group water schemes; that is not the intention. There are issues with respect to group water schemes and grants. As I understand it, this will continue to be an issue between the Department of the Environment, Community and Local Government and the group water schemes directly and that we will have no role in this regard.

There was a question about having a nominated board member from group water schemes. We believe this will not apply, but it is entirely up to the Minister who may take a view that someone from the group water schemes has specific experience which could be useful in potentially being a board director. However, it is entirely up to the Minister for the Environment, Community and Local Government and the Minister for Communications, Energy and Natural Resources to consult and appoint board members. It is exactly the same in the case of a customer representative. I have outlined the system in the United Kingdom under which Ofwat, the Water Services Regulation Authority, has a consumer council that is part of the consultation process. It has engaged formally in the establishment of water charges in the British market, especially in the markets in England and Wales. The appointment of a director to Irish Water is a matter for the Minister and, as I understand it, this will continue to be the case. We will not be in control of that process, nor are we in control of the process today of the appointment of board directors to Bord Gáis.

I have repeatedly stated we fully understand there is expertise available within local authorities with regard to their assets, processes and systems that offer us a service today. We are not the employers and will not be the employers of the local authority employees for the period through to 2017. Local authority employees will stay within the local authorities and provide the same services for Irish Water as they do today on a regional basis. The assets will transfer and the capital programmes will be centralised such that the funds which may be limited or otherwise will be dispatched to the regions on the basis of particular regional budgets. This will be done in the same way as it is now with the 34 local authorities linking into the Customs House. In essence, it will be done as part of a formal, annualised process. It will be signed off on by the Commission for Energy Regulation or the commission for energy and water regulation, whatever the title of the regulator is in the future.

We fully understand the need for expertise. We are actively seeking for people with particular expertise from the local authorities to be seconded to the programme of Irish Water. The body is not yet legally established, but we hope the people concerned will be seconded to us to give us a full flavour of what is happening. We are keen for them to join our teams and staff. The people we have specifically recruited to the programme will create teams to address the new solutions necessary in providing water services solutions across the country.