Brian Stanley (Laois-Offaly, Sinn Fein)
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Question 2: To ask the Minister for the Environment; Community and Local Government if he will give a guarantee that private companies will not be charged with the installation and control of water meters. [15916/11]

Fergus O'Dowd (Louth, Fine Gael)
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The programme for Government provides for the introduction of a fair funding model to deliver clean and reliable water. The objective is to install water meters in households and move to a charging system based on usage above a free allowance. The Department of the Environment, Community and Local Government is currently preparing a strategy to implement these proposals, including the funding of the metering programme, the approach to be taken for the procurement of the water meters and for their installation. Further details will be made available when the Government has considered the proposals.

The programme for Government also proposes the establishment of a new State-owned water company to be called Irish Water. The memorandum of understanding between Ireland and the European Union and International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility. Consultants are currently being appointed and will shortly commence work on this assessment, which will examine the optimum role of the new company and will assist in defining the functions to be assigned to it. The assessment is to be completed by the end of October this year and the Government will then consider proposals on the establishment of Irish Water before the end of 2011.

It is intended that Irish Water will be responsible for the management of the water metering programme. Achieving value for money will be critical and it is likely that the installation of water meters will involve an open procurement process where contractors will be invited to submit tenders for various elements of the meter installation programme. However, while it would be impractical to rule out private sector involvement in the installation of water meters, the intention is that the meters and related equipment will remain in public ownership.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I refer to the proposal to set up a single water authority in the State. Currently, that is the situation in the Six Counties. The Minister of State will be aware of the difficulties faced by elected representatives in the North when trying to deal with the problems during the big freeze last winter. We made cheap jibes about this in an earlier debate but despite the best efforts of all elected representatives in the North, a single body at arm's length from government and local and national elected representatives can cause problems.

Michael Kitt (Galway East, Fianna Fail)
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A question please.

Brian Stanley (Laois-Offaly, Sinn Fein)
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Will the Minister of State give a cast iron guarantee that private companies will not be involved in disconnecting water supplies to domestic households?

Fergus O'Dowd (Louth, Fine Gael)
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Irish Water will not be a private company but a State-owned operation. The Government and the Dáil will be informed of the powers and responsibilities it will have. There is a tender out currently. I hope we will have an interim report by the end of July and a full report in October. The Minister will then go to Cabinet with proposals which we will discuss openly in the House. It is not the intention that Irish Water will be a private company.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I have heard different things about the water charge and the utility charge and there have been various reports in the media. Will the Minister of State clarify when the utility charge and the water charge will come in?

Fergus O'Dowd (Louth, Fine Gael)
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The programme for Government provides for an allowance and after that there will be a charge. Up to 2,000 people will work on installing the meters in homes. That is a large number of jobs, which will be important to local communities.

Brian Stanley (Laois-Offaly, Sinn Fein)
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When will the charge be introduced? I did not get an answer.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy knows the answer.