Dáil debates

Thursday, 20 November 2014

Water Sector Reforms: Motion (Resumed)

 

1:45 pm

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael) | Oireachtas source

I criticised the three hours provided for a debate in the Chamber when the legislation to establish Irish Water was introduced almost 12 months ago. It is welcome that approximately 15 hours have been provided to debate the relaunch of Irish Water. I have also been critical of the general lack of reform of the way the Oireachtas does its business. The Irish Water debacle offers a good example of the importance of reform. A small group of people meeting privately and making major decisions that have a significant impact on the country shows disrespect for the Dáil and Cabinet. The result was a bad decision. It was not a tough decision, because the Government has made many tough decisions, which I have supported, in a short period.

We have seen how the difficulties arising from this bad decision and the refusal by the Economic Management Council to listen to others for a period of more than eight months have disrupted the work Deputies are trying to do and worn the patience of people outside the House. The Dáil is not in good shape if it can be treated in this manner, which damages individuals and the social contract. We need to properly understand the connection between this House and the outside world. The decisions taken in the Chamber are important and have an impact on people's lives. Our work does not involve theory but taking decisions that have consequences. The Oireachtas must be treated much more seriously than is currently the case. I wonder, given everything that has taken place and the role this Parliament has played in the recent economic collapse, why more has not changed.

While the Government says it is listening and reacting, as it has done in this case, there is more to the issue than the manner in which Irish Water was established. The issue is the way in which the political system operates. If the Government were listening, the Economic Management Council would not have driven the re-launch of Irish Water and the Minister would not have left the Chamber yesterday shortly after completing his speech to make appearances in the media. While I understand that things were done in that manner in the past, it is not how things should be done now. It is not good enough to argue that at least the decision was announced in the Dáil and that the previous Government under the Fianna Fáil Party would not even have done that. The previous Government is a low benchmark by which to measure our standards. We can and should do better.

Yesterday's announcement is welcome, and I support it because we need a single utility company. We must pay for water because collecting and treating water to make it clean and safe to drink costs money. Government backbench Deputies are waiting for more, however - a major follow-through measure that will either reform or abolish the Economic Management Council and give greater respect and power to the Dáil.

Viewed from a different perspective, how does yesterday's decision on Irish Water change the budget that the House adopted only one month ago and on which legislation is still before the House? Is it appropriate to make such significant decisions and major changes within one month of passing the budget? Is this the proper way to manage the national finances? Where is the new budgetary process we were promised? Where is the new independent budget oversight office for parliamentarians or the budgetary scrutiny committee that exists in other Parliaments? Where is the detailed examination of budget forecasts, all of which turn out to be wrong? Why are budget figures and the manner in which measures are implemented not examined throughout the year? Why did an Oireachtas committee not crunch the numbers before the decision was taken to make a major change to Irish Water? Why will this be done after the event, as has been the practice in the Oireachtas for far too long?

As to the announcement yesterday, it is important to continue to install meters and invest in the network over the next four years in order that we can move towards introducing a proper utility charge. Such a charge is necessary for the purpose of harvesting and distributing water. Residents in Dublin know full well the problems caused by under-investment in water infrastructure over a long period. The capital experiences water shortages because the facilities in place to treat and deliver water are inadequate, old pipes have broken in cold weather and 40% of the water we pay for through general taxation is wasted because a similar percentage of treated water leaks into the ground. A single utility raising money specifically for investment where none was available previously will improve our water infrastructure and make the provision of water cheaper and more efficient. These are positive developments.

What of the utility established to achieve these objectives? How does it stand in light of the decisions announced yesterday? People have tried to scapegoat the chief executive officer and board of Irish Water. While I would not have chosen the current CEO if I had been in a position to do so, we must recognise that the fault lies with the Government. It signed off on the plans for Irish Water and set the parameters under which it must work. It tried to do in two years what should take least five years, and it should have known better. Irish Water was established as a subsidiary of Bord Gáis against advice to establish it as a stand-alone utility. The consequences of this decision are evident in the problems we are experiencing. A form of protectionism was applied in the 12-year service level agreements reached with each of the local authorities. This approach meant none of the staff or resource efficiencies envisaged as a result of the creation of a single utility was achieved.

We now have a scenario in which we will not meet the legitimate pay expectations of people who signed contracts with Irish Water. The unilateral decision taken on this issue is dangerous. In addition, we have the expenditure on consultancy. The lack of detail provided on this matter to Deputies is indicative of the lack of respect shown to the Oireachtas. I tabled a parliamentary question recently asking the Minister to provide a breakdown of the €17.2 million fee charged by Accenture. In his response, the Minister stated that the fee was for work "in respect of Integrated Programme Management of Business Capability Establishment projects and management of specialist vendors contracted by Bord Gáis Eireann." This is the rubbish that I, as a Member of the Dáil, received when I asked the Department for a detailed breakdown of how €17.2 million was spent. This reply shows a lack of respect for the House. While this issue was discussed at a committee, the Department must have a more detailed breakdown of the costs because it would not stand over an entity such as Irish Water signing a blank cheque for €17.2 million on the basis of the sentence I cited. While the expenditure may have been legitimate, if people are unable to obtain transparency with regard to how their money is being spent, it undermines the case for spending this money, just as Irish Water has been undermined from day one. I hope the breathing room the company has been given will allow it to get up and running properly over the next four years and help it to build credibility. It has some distance to travel in this regard and I am not sure the announcement yesterday will be sufficient.

In my view, we should consider establishing a new entity, taking what investment can be salvaged and starting again. A new stand-alone utility with a new mandate and vision for the company is needed. The danger is that ten years from now we will have to deal with another quango or super-structure similar to the Health Service Executive and it will be too difficult to reform it because it will have become a Goliath.

I have other concerns, but my time is brief. The obligation on landlords to make deductions from the deposits of tenants who do not pay water charges is unfair. This requirement will have to be changed in the coming weeks, which will reflect negatively on this second attempt to deal with Irish Water. The payment system could be much simpler. While the lower charges are welcome, we should charge the lower fee rather than requiring customers to apply to another Department for a payment. People could have been incentivised to sign up for the installation of a water meter in a more efficient manner that would have worked for the utility, saved customers money and delivered the re-investment in infrastructure that we require. The new procedure creates the potential scenario of paying people to use water. This consequences of setting such a precedent have not been properly considered and it, too, will reflect negatively on the process.

The bullying and intimidation of workers, gardaí and politicians by protestors and public representatives is disgraceful. If this is the type of leadership Independent Deputies offer the people they represent, it is not welcome. Democracy is important. The Deputies opposite argue that the Government must show greater respect to the Dáil. They are correct, but they too must show the House greater respect. They are fooling themselves and lying to people when they stand with them with a megaphone and pretend to be powerless. They occupy the privileged position of being able to speak and make decisions on behalf of people and speak truth to power. They were elected for these reasons and they should respect that mandate.

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