Dáil debates

Tuesday, 28 January 2014

3:45 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

Deputy Martin has raised several issues, if I may say so. Clearly, last year it was perfectly obvious from Government that the cost of the establishment of Irish Water would have a headline figure of €180 million.

PricewaterhouseCoopers carried out an analysis and recommended that there be a greenfield operation. The Government is about making decisions. Since the setting up of a new utility involved 34 different local authorities, Bord na Móna and Bord Gáis submitted tenders for the setting up of the utility. The tenders were evaluated by NewERA and the Government made its decision to set up a new utility called Uisce Éireann or Irish Water, on the basis that it would have costs somewhere in excess of €80 million to €85 million extra were we to set it up as an individual new utility on a greenfield site.

The service level agreements are on the website of Irish Water and there is nothing secret about that. The comments made yesterday by the eminent economist, John FitzGerald, received a good deal of attention. He also said that there would be considerable savings through what was envisaged with Irish Water with the capacity to reduce the national debt significantly. I differ with the respected economist on the basis that he seems to assume Irish Water would have the same number of employees at the end of 2025 as it has taken on board along with the contract agreements with the councils.

The point is where we should have a real discussion. When the financial and business model for Irish Water is published in the coming weeks, it will indicate that the costs set out to be incurred by Irish Water will only be incurred as a consequence of serving the customers' needs, not the needs of the staff of Irish Water or Irish Water itself. It is about the needs of its customers. The financial and business plan will also demonstrate how it is expected to reduce the headcount by approximately 50% within ten years. That is where the real discussion will take place, on the basis of actual propositions for the setting up of the financial and business model for Irish Water.

In respect of Deputy Martin's question last week, as I understand it, three persons who retired from county councils and received lump sums and pensions were recruited under open competition for Irish Water. Deputy Martin is aware of the position in so far as the public service is concerned and the capacity of people who get further jobs in the public service and the limitations on what they can earn. Irish Water is not part of the public service, as such, in that it is to be a commercial semi-State body. There are views that the Minister for the Environment, Community and Local Government has an authority under section 27 of the Act, and he will look at that.

Far from Deputy Martin's assertion that this is some sort of secret organisation that has nothing to do with the public-----

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