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. My Department is currently preparing a strategy to implement these proposals, which will include consideration of the impacts on those categories of households referred to in the question.

The programme for Government also proposes the establishment of a new State-owned water company, Irish Water. The memorandum of understanding between Ireland, the European Union and the International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility. Work on the independent assessment is under way. The assessment will examine the optimal organisational structures for Irish Water, consider the associated legal, financial and organisational issues, and recommend an implementation timetable. The outcome of the assessment will be considered by the Government together with proposals for the establishment of Irish Water before the end of 2011.

Thomas Pringle (Donegal South West, Independent)
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I thank the Minister of State for his response. Unfortunately, it is practically the same response he gave last March to similar questions that were asked then. Householders are preparing for 2012 so they should be given some clarity as to what water charges they can expect. The issue of waivers for those on social welfare and other low incomes should also be addressed. In that way, householders can have clarity and see what is coming down the tracks. This has been flagged so well in the programme for Government and it was also flagged by the previous Government. The same questions were posed in March, yet we basically received the same responses. Will the Minister of State provide some clarity in response to these questions?

Fergus O'Dowd (Louth, Fine Gael)
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The Deputy referred to the answer provided in March and will know that the report was commissioned at the end of July. A draft report will be before us shortly, so the Government will be examining all the issues he raised. When that report is to hand we will make decisions that will bring into effect what is in the programme for Government. There is no doubt about what we will do and the issues are clear. The report will outline the type of structure to be in place when Irish Water is established. All the issues mentioned by the Deputy will be dealt with.

The programme for Government states that there will be an allowance for every household and that charges will be for usage in excess of that allowance. People will have discretion as to how they use their water allowance. When the report is published we will be examining all the issues the Deputy raised in his question.

Thomas Pringle (Donegal South West, Independent)
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I presume the report will examine what the standing charge will be for households, which will make the free allowance moot. I believe the standing charge will be significant and will raise the cost of water charges significantly for householders. Are there any current discussions to indicate what the standing charge will be for householders?

Fergus O'Dowd (Louth, Fine Gael)
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The Deputy is trying to raise hares that do not exist. The programme for Government states that "to achieve a better quality water and environment we will introduce a fair funding model to deliver clean and reliable water". So the objective is to install water meters in every household in Ireland and move to a charging system that is based on use above the free allowance. That is what we are talking about, but the Deputy is raising hares that are not running in this race.

Thomas Pringle (Donegal South West, Independent)
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Standing charges already exist for industrial users.

Fergus O'Dowd (Louth, Fine Gael)
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We want to improve water services and funding is badly needed. There is an inadequate water supply in Dublin, so water will have to be pumped from the Shannon to protect the city's supplies in future. There are various issues concerning climate change also. While water does come out of the sky it must be purified to make it potable. Creating any other scenario does not make sense if the water is not safe to drink. In addition, as a result of climate change, it may not be available to those living in the greater Dublin area. Counties from Donegal to Dublin will not be able to attract industry without an adequate water supply. Some 44% of water produced currently never reaches the taps because it is wasted.

Clare Daly (Dublin North, Socialist Party)
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Exactly.

Fergus O'Dowd (Louth, Fine Gael)
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All those issues must dealt with and that is what the report will deal with.

Thomas Pringle (Donegal South West, Independent)
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Will the Minister of State confirm what the standing charge will be for households?

Fergus O'Dowd (Louth, Fine Gael)
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There has been no decision.

Thomas Pringle (Donegal South West, Independent)
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So will there not be a standing charge?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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No decision. When we have a decision we will let the Deputy know.

Joan Collins (Dublin South Central, People Before Profit Alliance)
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People are waiting for that information.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy should have a bit of patience.