Mr. Paul McGowan:

No, the point is that the level of costs Irish Water is incurring at the moment is too high and they need to be reduced. Our role is to identify the reductions that we require the company to make and we will continue to do that. If there was a reduction in water usage there is also a chance that this may lead to the deferment of capital expenditure investment which, of itself, would save money as well. It does not necessarily follow directly that if people start to conserve water, their bills will suddenly go up. There are many factors that feed into it. A major determinant of future prices is the level of capital investment that must be carried out to make the overall water and wastewater system fit-for-purpose. There is a massive capital investment programme to be carried out.

We have no role in the need to move to full cost recovery. It is purely a matter for Government in respect of how and whether it continues to subvent Irish Water and we have no role in that regard. Our role is to analyse the full cost base and then we take account of any Government subsidy.