Fergus O'Dowd (Louth, Fine Gael)

I propose to take Questions Nos. 10, 11, 16 and 20 together.

The programme for Government proposes the establishment of a new State-owned water utility company to take over responsibility for managing and supervising investment in water services infrastructure and to manage the domestic water metering programme. The memorandum of understanding between Ireland, the EU and the International Monetary Fund, IMF, commits Ireland to undertaking an independent assessment of the establishment of a water utility. I intend to proceed with carrying out this study as a matter of priority.

The transfer of functions from local authorities to a new water utility will require significant legal and administrative changes. The independent assessment will examine the proposed role and functions of Irish Water, the approach to assigning these functions to the company from the 34 local authorities and the optimal organisational structures for the company. Critical issues such as governance, value for money, financial viability and customer service will be key factors in determining the company's structure. It is envisaged that the independent assessment will be completed by October. I will prepare proposals for Government consideration toward the end of this year and I will provide further information as soon as I can.

Irish Water will be a State–owned company and there are no plans for its privatisation. The structures and indicative staffing complement required for Irish Water and the consequential effects on staffing at local authority level will be considered by the independent assessment and will be influenced by decisions on the functions to be assigned to Irish Water. The Public Service Agreement 2010-2014contains specific provision for redeployment arrangements for local authorities within the local authorities and to other public sector organisations.

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