Ms Maria Graham:

The letter arrived on 12 January and we brought it to the committee’s attention. As the Chairman said, it will be made available to members. It is a short letter which follows on from the noting that the European Commission made in its submission to the expert commission. It pointed out some issues around the directive being a flexible instrument allowing member states a margin of appreciation but it also referred to cost recovery and the polluter pays principle. It stated that it is therefore important that the ongoing decision-making process leads to sound and lasting results which must bring Ireland back into compliance with the directive. It gave some views from the Commission in terms of how a fair balance might be struck. I highlighted one of them in the presentation, which was the recovery of costs and how we must ensure that Irish Water meets the infrastructure needs. The letter also talked about how consumption of water might be set at a normal use, a reasonable level and charging for excess use. It went into the components of the expert commission recommendation in that regard. That is what will be addressed at the future meeting.

The issue around investment in wastewater infrastructure is relevant. The Commission, in terms of compliance with the water framework directive and charging, has a number of open infringements with us with urban wastewater compliance. Much of the €5.5 billion in the Irish Water business plan is to address that infringement and bring us into compliance in that respect.

Similarly, regarding drinking water, we have a pilot infringement which requires investment in drinking water by both Irish Water and the rural water sector. When we talk about compliance with the directive, I take this to mean a holistic compliance. I understand that the letter will be circulated by the committee.