Joe Costello (Dublin Central, Labour) | Oireachtas source

I welcome the opportunity to speak on the Water Services (No. 2) Bill. I am very disappointed by the grandstanding and childish behaviour we have just seen in seeking attention at the end of term. A grand coalition of opposites is opposed to reforming our outdated water services system. If a protest was to be made, it might have been made on something more appropriate.

I am delighted to speak on the Bill. In combination with the Water Services Act 2013, it will implement the Government's policy on the reform of water services and is part of the programme for Government; therefore, we are committed to delivering on it and are doing so, as we have done in so many other areas. The Bill provides for the transfer of water service functions to Irish Water from the 34 water service authorities. Water infrastructure is, clearly, a natural monopoly and of great strategic importance; therefore it must, as the Government has indicated, remain in public ownership. That is an important characteristic of the legislation.

The organisation of water services in Ireland does not use the natural monopoly and the 34 separate authorities that operate water services are unable to exploit the economies of scale available. The creation of a unified public utility should result in significant efficiencies. The creation of Scottish Water as a unified public utility resulted in efficiencies that brought about a reduction in operating costs of almost 40%. Clearly, there is an imperative for us to make the appropriate savings, especially in these difficult times. There is a precedent. This legislation is very much based on the precedent in Scottish Water - a 40% reduction in cost is extraordinary, substantial and significant. It would be criminal not to consolidate the provision of water services and water functions when we see a gap of €1 billion in the cost for the provision of water services which is not recouped. If we can reduce that figure by 40%, it would be very significant. The fact that the infrastructure is being kept in State ownership is something I would have thought some Opposition Members would have welcomed, rather than walking out.

Irish Water will have an important role to play in water conservation. Water conservation enhances the environment, protects drinking water resources and saves money. While nobody wants extra costs to be imposed on households, the introduction of water charges will result in improved water conservation. However, it is important that safeguards are in place to protect consumers. Work is under way on the structure of the proposed free allowance or allocation and affordability measures that will be introduced by the Government to mitigate the impact of water charges on domestic customers.

It is welcome that the Bill includes a prohibition on the disconnection of domestic customers. It is very important that the word go out that this is not per se a fundraising exercise in terms of the imposition on domestic households but a conservation measure. Much work should go into the determination of the free allocation that will be granted to households. It is welcome that it will be introduced and it should be available to the maximum and be weighted in favour of those who are less well off. Households, particularly larger ones, in areas of disadvantage should have a larger free allowance than in other areas. We would welcome this. I am pleased that the CER will operate to approve what is proposed by Irish Water; therefore, it will not be a single division but one that will be approved by the regulatory process. I would like to hear the Minister's views on how this might operate and how the Department of the Environment, Community and Local Government envisages it operating.

The creation of Irish water has had the additional benefit of creating jobs through the metering programme which is well under way. The programme has created more than 600 jobs, 60% of which have gone to people on the live register, local SMEs, graduates or apprentices. There is a clear boost to the economy and there will be considerable employment in the course of the process once the functions are taken over by Irish Water. The Bill also provides for both the economic and environmental regulation of Irish Water. The CER will work to protect the interests of customers andl approve codes of practice to be adopted by Irish Water, an important requirement. The EPA will be responsible for the environmental regulation of Irish Water and ensure Irish Water will maintain the required standards of drinking water quality and the treatment of wastewater. The CER and the EPA will work together to ensure as much consistency as possible between the decisions and measures taken by each agency.

The Bill will help to transform water supply and wastewater treatment in Ireland. Unfortunately, previous Governments under-invested in water infrastructure. It is essential we deliver the level of infrastructure we need to meet demographic, economic and environmental requirements in the future. The development of a unified, publicly owned water utility in the shape of Irish Water will help to secure our long-term economic development and enhanced water conservation. In my portfolio, dealing with trade, businesses are always extremely concerned about the level of water that is treated and that there is a regular supply. Consolidating the functions, treatment and supply of water is extremely important to ensure the economy, coming out of the bailout programme, can move forward in a way that will enhance our attractiveness to businesses we are seeking to attract to the country and increase the ability of existing small and medium enterprises to expand.

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