Dáil debates

Wednesday, 6 April 2011

1:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Question 4: To ask the Minister for the Environment; Heritage and Local Government the timeline for the setting up of a new water company, the installation of water meters in domestic households and the introduction of water charges [6937/11]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The memorandum of understanding between Ireland and the European Union and the International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility with a view to commencing charges for water services in 2012 or 2013. The programme for Government includes a proposal to create Irish Water, a new State company which will take over the water investment maintenance programmes of the 34 existing local authorities.

It is my intention that the assessment of the establishment of a water utility should proceed as a matter of priority. The transfer of functions from local authorities to the new State-owned water utility, as set out in the programme for Government, will require significant legal and administrative changes. The independent assessment will make recommendations for the establishment of the new organisational structure. It is envisaged that the independent assessment will be completed by October this year. With the Minister, Deputy Phil Hogan, I will be preparing proposals for Government consideration. I will provide further information on a timescale for the establishment of the utility following that Government consideration.

The programme for Government also proposes the installation of water meters in individual households and the introduction of water charges based on usage above a free allowance, which is an important point. My Department is preparing a strategy to implement these proposals, including a strategy for the procurement and installation of meters. It is envisaged that the installation of meters will commence in 2012 to be managed by the new State-owned water utility.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I congratulate the Minister, Deputy Phil Hogan, and the Ministers of State, Deputies Willie Penrose and Fergus O'Dowd, on their appointments and wish them the very best. I take the Minister of State, Deputy O'Dowd's point on the assessment and moving as quickly as possible. What I first want to ascertain is when approximately he envisages the new water company will come into existence. Second, if I understood him correctly, the roll-out of the water meter installation programme will commence in 2012. Approximately how long will it take to complete? Third, when can we expect to see water charges introduced? I note the Minister of State says a certain amount of water will be provided free and that people will be charged for usage in excess of that amount. Am I correct in stating it will not be possible to introduce water charges until such time as the full meter installation programme has been rolled out?

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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First, we want to set up the water authority, Irish Water, as soon as possible. The independent assessment will be completed before October, but I understand there will be an interim report before then. I hope, therefore, the legislation will be ready before January next year.

Second, I understand it could take up to three years in total to install water meters in every household. There are difficulties in certain areas and with certain housing types; for example, it can be very expensive to install meters where people are living in blocks of apartments. When metering will commence is a matter for the Ministers involved.

The only reason this is happening is that the memorandum of understanding signed by the previous Government with the IMF and the European Union forces it upon this and succeeding Governments - it is the origin of the charges.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Was it not included in the Fine Gael Party manifesto? It was a commitment given by Fine Gael also in the manifesto it launched to the people.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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We had no choice.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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No, Fine Gael indicated in advance of publication of the IMF deal that it intended to do something along these lines. In fact, at Question Time in October last Deputy Hogan, the new Minister, said he agreed with the idea of controlling the use of water because it was a finite resource. Therefore, let us dispel that notion.

The Minister of State has said it will take three years from the beginning of 2012 when the Government intends to begin rolling out the water metering programme, but he was not able to tell me when we could expect to see water charges introduced. If a certain amount of water will be provided free and use of water beyond that amount will incur a charge, how can charges be introduced before a system has been rolled out?

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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When the last Government signed up to have charges-----

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I want my questions answered. Many are interested in the answers.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I will answer the questions put. The years 2012 and 2013 were mentioned in the deal agreed by the last Government. With regard to how meters will be installed and the problems in that regard, from the briefing I have received approximately 1,800 people will be employed for a period of three years to install meters in every house in the country. I presume that when all of that has happened, there will then be a decision on charging. The whole idea in metering is to conserve water. However, the independent assessment will examine the issue of value for money under the meter installation programme, as well as other matters.