Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The programme for Government made a commitment to establish Irish Water, a new State company to take over the responsibility for the delivery of water services. As the Minister of State, Deputy O'Dowd, outlined in his speech yesterday, the Government has delivered on this commitment. Within a relatively short space of time, we have moved from a fragmented system of service delivery to a unified delivery structure by a single utility, Irish Water. This has been made possible by the Government's decision to establish Irish Water within the Bord Gáis Energy group and to leverage the experience and skills of the management and staff in Bord Gáis Energy while retaining the knowledge and the expertise that exists within the local government sector.

On 1 January 2014, Irish Water assumed responsibility for the delivery of water services in Ireland from the 34 county and city councils, following the commencement of the Water Services (No. 2) Act 2013. This is a very significant milestone in the water services reform programme. The establishment of Irish Water will deliver significant benefits to the people in the years ahead. If we are to attract industry to provide jobs, we need to increase the investment in water services infrastructure. The new sustainable funding model will secure the level of investment that is needed to upgrade, repair and expand our public water and wastewater infrastructure.

The economic situation for all Irish people has been difficult in recent years and we need to create more jobs and to do so we need to make Ireland an attractive place in which to do business. Providing a world-class standard of water services is a critical component of that task and will help make the economy more competitive and will assist in promoting industrial development and investment. A greater security of supply will assist in making this country a more attractive place for water-intensive industries including pharma-chem, ICT and agrifood. The Government simply cannot continue with the current situation with over €1 billion of taxpayers' money being spent annually on water services, but with 40% leaking into the ground. Furthermore, there are significant additional requirements for capital investment in water to meet our EU water quality requirements.

Costs have, of course, been incurred in the establishment of Irish Water. However, these costs are an investment in a modern fit-for-purpose water utility which can provide a better service to the citizens of this country. The establishment of the company will deliver major savings of approximately €2 billion over the next eight years. The benefits to the people will also include the introduction of a lower operating cost model; the elimination of wastage through leaking pipes; increased investment in essential infrastructure; sustained investment in wastewater treatment to improve our water resources; and continued improvement in drinking water supplies. All of the costs will be subject to the detailed scrutiny of the Commission for Energy Regulation, which is being given responsibility for the regulation of water services.

There has been much comment on the level of expenditure to date on the development of systems by Irish Water. I accept that the sums of money involved are substantial, but they must be viewed in the context of both the overall scale of the water sector reform programme and relative investment required for systems within the regulated utility sector. Investment in ICT systems is critical for all high-performing utility companies. The level of investment incurred in establishing Irish Water to date compares favourably with investments made by similar utilities both here and in the UK.

Deputy Dooley might not realise that the ESB made an investment of almost €100 million on a new customer billing system, which was launched in January 2005, while the Single Electricity Market cost €256 million to establish in 2007. I am glad to be able to put those facts on the record for the benefit of Deputy Dooley.

Irish Water also outlined to the Oireachtas Joint Committee on Environment, Culture and the Gaeltacht this week that at least three water utility companies in the UK are each planning to spend in excess of £100 million equivalent to approximately €120 million on upgrading their IT systems for customer billing and asset management.

One of the central elements of the Private Members' motion is the call for the Freedom of Information Act to include Irish Water. The Minister for Public Expenditure and Reform gave a commitment last November that he intended including Irish Water within the remit of the Freedom of Information Act. The Private Members' motion also seems to imply that the establishment of Irish Water is a prelude to privatisation - this is simply not the case. The Government has consistently stated that the supply of water and wastewater services will remain in public ownership. The Water Services (No. 2) Act 2013 specifically provides that Irish Water cannot be privatised and will remain in public ownership.

I am not surprised by the ill-informed comment regarding the establishment costs of Irish Water to deliver a top-class water service for the Irish people in the years ahead. After all Fianna Fáil and Sinn Féin have opposed this policy from the beginning, but have failed to put forward proposals regarding the cuts in public expenditure from other programmes or the increases in taxation that would be required to increase spending on water services in order to meet future needs.

We cannot continue with the existing fragmented approach. After nine hours of committee hearings we now know that there is transparency and accountability in Irish Water at all levels and that there is a strong relationship between Irish Water and local authorities in delivering a top-class water product in the years ahead. I am particularly pleased to confirm to Deputy Gerry Adams, the leader of Sinn Féin, that there is no smoking gun arising from the recent committee hearings. Equally, I am glad to tell my colleagues in Fianna Fáil that Irish Water has learned from some of the mistakes of that party's leader when he was Minister for Health and Children regarding the ill-fated PPARS project which resulted in €131 million, including €57 million in consultancy fees, being wasted and squandered.

I assure Deputy Sean Fleming that I will not sign any blank cheque for anyone, not even the water regulator. Fianna Fáil smearing the good name of people in Bord Gáis Energy is disappointing but not surprising. I commend all the staff in Irish Water and the local authorities who are embracing change to ensure we deliver a top-class water product for people in the years ahead in the interests of public health and of jobs. The Government has nothing to hide.

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