Fergus O'Dowd (Louth, Fine Gael)

The memorandum of understanding between Ireland and the European Union and the International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility with a view to commencing charges for water services in 2012 or 2013. The programme for Government includes a proposal to create Irish Water, a new State company which will take over the water investment maintenance programmes of the 34 existing local authorities.

It is my intention that the assessment of the establishment of a water utility should proceed as a matter of priority. The transfer of functions from local authorities to the new State-owned water utility, as set out in the programme for Government, will require significant legal and administrative changes. The independent assessment will make recommendations for the establishment of the new organisational structure. It is envisaged that the independent assessment will be completed by October this year. With the Minister, Deputy Phil Hogan, I will be preparing proposals for Government consideration. I will provide further information on a timescale for the establishment of the utility following that Government consideration.

The programme for Government also proposes the installation of water meters in individual households and the introduction of water charges based on usage above a free allowance, which is an important point. My Department is preparing a strategy to implement these proposals, including a strategy for the procurement and installation of meters. It is envisaged that the installation of meters will commence in 2012 to be managed by the new State-owned water utility.

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