Terence Flanagan (Dublin North East, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this debate and thank the Minister of State at the Department of the Environment, Community and Local Government, Deputy O'Dowd, for being in the Chamber to listen to my contribution. As the line manager with responsibility for water services, he is working extremely hard in this area. I wish him well in his efforts.

This Bill provides for the establishment of Irish Water, a new State service that will help to ensure water is delivered more effectively. There are significant problems with the current water delivery system in Ireland, with 40% of water going to waste. The objective of establishing Irish Water and the water metering programme is to install water meters in all homes that are connected to the public mains in order to put in place a charging system based on usage above a free allowance. It is important that large families get a large free allowance so that they are not penalised. If people use large volumes of water, however, they should be charged accordingly.

According to a report on Irish water produced by PricewaterhouseCoopers, there is under investment in water infrastructure in this country and poor quality facilities still exist in some areas.

In addition, our EU obligations under the water framework directive, a continued projected increase in population and an increase in demand for water services mean a proper framework for the provision of water must be established in the State.

Ireland clearly needs a Iong-term plan for the management and provision of water to ensure a steady and clean supply for future generations. Failure to act on this will have substantial consequences for the future supply. As Deputies, we are all aware of areas in our constituencies where there are difficulties with supply from time to time, particularly during hot weather. We must take this into account when projecting demand for the years ahead.

Water services cost over €1.2 billion to operate in 2010. We use the same quality water to flush our toilets as we use to clean our teeth. This is wrong and wasteful in this day and age, the economic situation being as it is. Approximately €1 billion of the cost of water services is provided by the State. Therefore, the introduction of water charges will help to reduce the burden on the Exchequer and local authorities, which are cash starved at this time. It must be acknowledged that the ability to fund and maintain water services at the current level is growing increasingly more difficult. A new cash flow stream is required, hence the introduction of water charges.

It is a concern that there is currently no economic regulation of the Irish water sector and that it operates at a loss. The introduction of water charges will bring us in line with other countries in Europe and with OECD countries, which charge households for water consumed. The programme of financial support with the troika included a commitment to undertake an independent assessment of the transfer of responsibility for water services provision from the current 34 local authorities to one main authority. This is important in the context of economy of scale and will make it easier for us to manage and regulate the system.

It is welcome that any revenue generated by Irish Water will be reinvested in infrastructure, which is significantly dated, in our cities, in particular where the pipework is Victorian and needs updating and repair on an ongoing basis. The extra cashflow will ensure there is faster upgrading of our leaky infrastructure and will help provide new infrastructure and treatment plants in the future. Irish Water will manage the provision of drinking water, the treatment of wastewater and sludge disposal. It will be responsible for sourcing private finance for investment in capital projects, the roll-out of the national water metering programme, customer service and billing, conservation of water supplies and water resource management.

The Bill also provides for the Commission for Energy Regulation to determine the cost of water services for the consumer. It is crucial the regulator tries to keep the cost low because of the economic demands being made on the people at the current time. The metering system will ensure that people do not unnecessarily waste water and that consumers will be more careful in ensuring that taps and pipes are not leaking water. We have often heard of taps being left running, particularly during cold spells. This is a shocking waste of water. It is terrible that people think it is necessary to act in this manner at such times.

As a result of water metering, people will become more aware of the need to conserve water, as there will be a financial impact on them the less they conserve. The system will also have positive knock-on effects for the environment and will cause consumers to become more environmentally aware. The metering system is also useful for showing the demand for water in certain areas. It will help Irish Water to determine future needs and to pinpoint where there are leaks and ensure repairs are carried out. In the UK, metered households have steadily used less water per person than those that are unmetered and since 1998 the amount has decreased from 8.1% less to 15.3% less in 2009. International figures indicate the introduction of water meters can lead to a reduction in water consumption of at least 10%. This is welcome.

Local authorities will continue to manage water services until 2014 when the three year transition phase will take place and Irish Water will take over full responsibility for the system. By 2017 it is hoped that Irish Water will be up and running and the full transfer of responsibilities will have taken place.

John Tierney, who until recently was the Dublin City Council manager, which manages a large part of my constituency, has been appointed as managing director of the Irish Water company and I have every faith in him doing a good job in that role. Dublin City Council is the largest council in the country and the experience that Mr. Tierney has gained in managing a large part of the capital city means he will bring valuable expertise to his role. The fact that the company will be set up under the established company Bord Gáis will also be beneficial, as there is existing management experience and expertise to ensure the smooth operating of the company. A substantial number of jobs will be created, with an estimated up to 2000 jobs being provided as a result of the metering programme, including much needed employment generation in the construction sector. This is welcome.

I fully support this Bill and its purpose, which is to support the centralisation of the provision of water services in Ireland. This new system will not only be more efficient, it will ensure that more water is conserved and it will address the current funding gap, largely met by the Exchequer, which currently exists. I also welcome that the utility will be established under Bord Gáis Éireann, which has an excellent track record, and I have confidence that company will fully meet its responsibilities in this regard.

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