Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Tá an Bille seo faoi bhráid na Dála inniu agus bhí díospóireacht an-mhaith sa Seanad coicís ó shin. Bhí tuairimí ag gach taobh den Teach agus d'éisteamar leo, agus táimid ag díriú ar cuid de na rudaí a dúireadh ag an am sin.

This Bill is the second legislative milestone in the Government's strategy for the reform of water services provision in Ireland. The Water Services Act 2013, enacted last March, provided for the establishment of Uisce Éireann as a subsidiary of Bord Gáis under the Companies Acts. This Bill represents fulfilment of our programme for Government commitments to introduce a fair funding model to deliver clean and reliable water, to establish a new State-owned utility to take responsibility for water infrastructure, and to advance our commitment to implement a charging system based on usage above a free allowance and a programme of water metering of all households. International evidence clearly indicates that the metering programme will help reduce leakage and demand, cutting production by at least 15%. That statistic is found in all the relevant literature.

The challenges facing Ireland's water sector are not unique. Water demand is rising, with supply becoming less secure. Our water bodies need greater protection. By 2030, the world is expected to need 40% more water than will be available. We are distinct from most countries by the level of freshwater we have available. We must turn this to our advantage by creating a world class water sector that can continue to attract water-intensive industries such as ICT and pharmaceutical and chemical industries to Ireland, as water stress becomes increasingly common elsewhere. By 2030, our river basin management plans will have been reviewed a further three times and the quality of our water bodies will have further improved. Environmental and economic regulation of water services must be inter-linked. This Bill plans for the future.

We are advancing a reform programme based on three pillars: the establishment of a public utility, Irish Water; the creation of a more sustainable funding model based on usage, including domestic charges, and the utility's access to commercial lending; and independent, economic regulation of the sector by the Commission for Economic Regulation. The delivery of water services and new infrastructure through Irish Water, working with the local authorities, which have provided water and wastewater services with great care and dedication for over 100 years, will involve a new partnership. It will be a partnership combining the local authorities' expertise in assets management and operations with the considerable network and utility management experience within the Bord Gáis group through the service level agreements which this Bill provides for. The establishment of a new and sustainable funding model will help to secure the level of investment required to upgrade, repair and expand our public water and wastewater infrastructure. Increased investment, as well as securing supply and protecting our water bodies, will provide thousands of additional jobs, adding to the 1,600 jobs which are being created by the investment in the domestic metering programme.

The Government's objective in creating the sector's new funding model is very clear; the domestic charges element will be based on fairness. The OECD has stated that metered charges are the fairest form of water charges. The Government agrees. We will provide a free allowance, as well as supports for those willing to pay but unable to do so, and for those with high water usage necessitated by medical conditions.

Independent, economic regulation of water services is critically important if we are to ensure that all water customers are protected and that the new utility delivers value for money. I am confident that the Commission for Energy Regulation, with its reputation for independence and rigorous oversight of utilities, will protect the interests of domestic and non-domestic customers. Its scrutiny of Irish Water's budgets and capital plans, and determination of water tariffs, will ensure that water services are cost effective and efficiently delivered. The EPA has a proven track record of environmental regulation and its role in the oversight of Irish Water will mark continuity with its existing role in monitoring and maintaining water quality.

I would also like to address the impact of the reforms on the local authority sector and in particular, on local authority employees. Given the scale and complexity of change involved in this reform process, engagement with staff and their trade unions has been critically important and the Irish Water consultative group, which was put in place to facilitate this interaction, has played a vital role in moving the reform process forward and also in helping to shape key aspects of this Bill. It is also important to acknowledge the significant achievements of the local authorities and their dedicated staff in the delivery of water services, often in very challenging circumstances. The structures we are proposing to introduce with this Bill will ensure that their experience, expertise and knowledge will be at the heart of the new water services model.

Irish Water and each local authority will be entering into a service level agreement. The Bill provides that the initial agreement will be of 12 years duration, and once the first agreement comes to a conclusion, the option of entering into subsequent agreements is also provided for. Where it is decided not to enter into a subsequent agreement, the Bill provides for the transfer of staff involved in the delivery of the service level agreement from the local authority to Irish Water.

I would like to address briefly the reports of a special meeting of Dublin City Council which took place earlier this week. First, it is important to acknowledge the prominent role the city council has played, in collaboration with the other councils, in providing quality water services to the greater Dublin region. This has been critical in supporting the development of the region as a place in which to live, invest and work. It was reported at the meeting this week that the city council would be left with substantial pension liabilities arising from the establishment of Irish Water and the transfer of water services infrastructure. I want to put on the record of the House that this is not the case.

Local authorities operate a public sector defined benefit "pay as you go" pension scheme, so as pension liabilities fall due at the point of retirement, payments are made from annual current expenditure and contributions made by staff. The water services employees that currently work in local authorities have accrued pension entitlements already and these would be a future liability of the authorities if things remained the same.

This Bill provides that the payment of accrued pension benefits to local authority staff who transfer to Irish Water, either now or following the termination of a service level agreement, will not be imposed on the county and city councils. The service level agreements will provide for the payment by Irish Water of existing water services pensioners for the duration of the agreements. I want to confirm that the County and City Managers Association, which has been centrally involved in the oversight of the reform programme, has also been given very clear commitments by the Department. These commitments address any other pension liabilities in respect of water services employees who, on the termination of a service level agreement, opt to remain in employment with a council rather than transfer to Irish Water.

It was also reported that valuable water service assets would be transferred to Irish Water without compensation to councils. This is an unbalanced presentation of the situation. There has been very substantial Exchequer capital investment in water infrastructure. The Bill provides that Irish Water and the water services infrastructure will remain in public ownership; therefore, it is transferring from one publicly owned authority to another. The Bill also provides that liabilities and loans associated with infrastructure that is transferred will also be taken on by Irish Water.

Part 1 of the Bill, comprising sections 1 to 4, inclusive, deals with standard provisions in primary legislation regarding the Title of the Bill, commencement provisions, expenses incurred by the Minister in the administration of the legislation and the definitions of terms used in the Bill. Part 2 provides for the transfer of functions, property and staff.

Section 6 provides that transfer day may be appointed by order by the Minister for the Environment, Community and Local Government. Section 7 provides for the transfer of functions conferred by the Water Services Act 2007 to Irish Water on transfer day provided for in section 6. It also provides that water service functions in Parts 4A and 6 of the Water Services Act 2007 will not transfer to Uisce Éireann.

Section 8 provides Uisce Éireann with the power to charge non-domestic customers with effect from transfer day on the same basis the local authorities had charged these non-domestic customers before that day. This section will have effect only up to the date of commencement of section 16 which requires Uisce Éireann to charge customers in accordance with the water charges plan which will be subject to the approval of the Commission for Energy Regulation, CER. The section effectively provides for the roll-over of the non-domestic water charges levied by the local authorities until such time as the CER approves Uisce Éireann's charges next year.

Section 9 provides that the provisions of section 29 of the Water Services Act 2007 shall apply to Uisce Éireann. This section confers immunity on Irish Water and its employees from prosecutions arising from carrying out their functions under the Bill.

Section 10 provides that the local authorities will continue to have powers which transfer to Uisce Éireann under section 7 which are necessary for the performance of local authority functions under the 2007 Act. These functions relate to septic tanks and rural water services.

Section 11 provides that actions of a water services authority which commenced before transfer day but which are not completed may be carried on and completed by Uisce Éireann, where this action relates to a function transferred under section 7. This would include matters such as planning applications or environmental impact assessments, EIAs.

Section 12 provides for the transfer of the property of the water service authorities to Uisce Éireann on a designated property vesting day or days. These transfers will be facilitated through ministerial orders. Property will include assets such as land, buildings, water services infrastructure, vehicles, pipes, sewers and moneys. A provision is included for the Minister to request any information required from a local authority to enable him to decide on the making of a transfer order.

Section 13 provides for the transfer of rights and certain liabilities, associated with the property transferred under section 12, from the water service authorities to Uisce Éireann. Examples of the rights and liabilities referred to would be leases, licences and wayleaves.

Section 14 provides for the transfer of other liabilities of a water services authority to Uisce Éireann. Liabilities transferred under this section shall be designated in a ministerial order.

Section 15, a Government amendment in Seanad Éireann, provides for the transfer of liabilities for losses before transfer day. Liabilities arising in respect of civil liabilities or the recovery of damages will not be transferred.

Sections 16 to 18, inclusive, were Government amendments approved by Seanad Éireann. They provide for the transfer of licences, certificates, authorisations and permits, including, inter alia, water pollution licences, foreshore licences and wastewater discharge authorisations.

Section 19 provides for the transfer of staff from local authorities to Uisce Éireann. Such transfers would take place following consultations between each individual local authority and Uisce Éireann. This section will apply only to local authority staff involved in the delivery of water services as part of an SLA made between the local authority and Uisce Éireann under section 31 and will be applied only following the termination of such an agreement.

Part 3 deals with water charges. Section 21 provides that Uisce Éireann shall charge each customer in receipt of water services. The charges to be levied by it shall be calculated in accordance with a water charges plan as set out in section 22. Uisce Éireann will be prohibited from cutting off a water supply to a dwelling arising from non-payment of water charges. Irish Water will be empowered to disconnect a non-domestic user where water charges remain unpaid and it will also have the power to reduce the supply of water to all customers where charges remain unpaid. The power to disconnect a customer from a water supply or reduce a water supply to a customer will be subject to the approval of the water charges plan under section 22. The section provides that charges will not apply for water supplied to a fire authority for the performance of its functions. It also provides that for the purpose of charging, the owner of a premises will be presumed to be the occupier of that premises unless it is proved to the contrary.

Section 22 provides that Uisce Éireann is to prepare a water charges plan setting out the manner and method for the water charges to be applied under section 21. This water charges plan must be submitted to the CER by Uisce Éireann and the CER will have the power to approve or reject the plan. The plan will contain the charges to apply where the charges are based on the quantity of water as measured by a meter or where the charges are assessed based on a formula to be set out in the plan. The plan must specify the charges to apply to different classes of customer and the different methods of payment for customers. Uisce Éireann will, in common with other utility service providers, put in a place a wide range of payment methods and options to facilitate its customers. The section provides that water charges will apply to water supplied to a premises and wastewater discharged from a premises. Unless agreed otherwise between Irish Water and a customer, the amount of wastewater discharged from a premises will be deemed to be equal to the amount of water supplied to the premises. An example of the households that this approach would need to differentiate would be those in receipt of a water supply from Irish Water but which are discharging wastewater to their own septic tanks or similar systems.

Section 23 provides that Irish Water may enter into agreements with a customer for charges for the provision water services that are different from the water charges provided for under section 21. Such agreements which will require the approval of the CER would typically apply to large industrial and commercial customers.

Part 4 of the Bill deals with provisions relating to the governance of Uisce Éireann and related matters. Section 25 provides that Uisce Éireann shall take the necessary steps to amend its memorandum and articles of association to ensure they are consistent with the Bill. The Water Services Act 2013 set out conditions in relation to the memorandum and articles of association of Irish Water and provided that they be approved by the Minister for the Environment, Community and Local Government, with the consent of relevant Ministers. The 2013 Act and this Bill provide that any alteration to the memorandum and articles of association requires prior ministerial approval and consent.

A copy of this speech has been circulated and if any issue arises in the debate, I will stand over it.

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