Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The Deputy referred to the loan relating to Irish Water being decided upon by the economic management committee. The latter does not make decisions on behalf of the Cabinet, rather it makes recommendations to the Cabinet for formal decision. The National Pensions Reserve Fund, NPRF, is independent in the context of its loan-making functions. It was a matter for the NPRF to decide whether it would provide Irish Water with an initial bridging facility. Given that Irish Water was not fully established at the time, the NPRF sought a Government guarantee in respect of the loan it was making to the company. That guarantee was provided by the Minister for Finance, following consideration, agreement and decision on the part of the Government. It was not the case of the economic management committee making the decision. The possibility of a guarantee of this nature is provided for in section 13 of the Water Services Act. In that regard and following consultations with the Minister for the Environment, Community and Local Government, Deputy Hogan, the Minister for Finance may guarantee, on such terms as he thinks fit, the due repayment by Irish Water of the principal borrowed and any interest which accrues on that borrowing. On 11 June 2013, the Government agreed that the Minister for Finance would provide such a guarantee in respect of the proposed bridging facility to be provided to Irish Water by the NPRF.

On 19 June 2013 the NPRF commission decided to provide Irish Water with a bridging facility on commercial terms which would cover expenditure on the domestic water metering programme and the establishment costs of Irish Water. The provision of the loan and the guarantee allowed BGE-Irish Water to award the meter installation and equipment contracts and to commence and accelerate the metering programme work which began in July 2013.

Deputy Martin will be aware of the perception - he may have said it himself - that this is a sort of a playing out to allow this thing to happen beyond the local and European elections. The Government will introduce its business and financial model well in advance of the local and European elections-----

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