Ann Phelan (Carlow-Kilkenny, Labour)
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I thank the Leas-Cheann Comhairle for allowing me to raise this important matter on the first Topical Issue Debate on 2014. This is a very important topic, particularly in light of the negative attention Irish Water has attracted in recent days. I hope the Minister of State will be very explicit when replying to what I have to say.

Ireland is to start charging for domestic water usage and, in that context, a new system of charges is to be introduced for all homes that are connected to a public water supply. The new charge will be levied by Irish Water, which is the new national water services authority, with the first bills for domestic water usage to be issued in 2015. I am of the view that when any new national charges are levied on taxpayers, a one-size-fits-all approach cannot be adopted because we are all different and each of our personal circumstances must be taken into account, particularly during the current economic downturn. In current circumstances, there is an affordability factor which must be taken into consideration. The Minister for the Environment, Community and Local Government must impress upon Irish Water that this factor must be taken into account before the charges are calculated. There should be an investigation into the concept of affordability because the introduction of these new charges, combined with other charges and taxes, will undoubtedly give rise to problems for some people. I refer, for example, to those who are on very low incomes or who are in receipt of social welfare benefits.

I am of the view that Irish Water could introduce a free personal allowance scheme for every individual who is liable to pay water charges. Under this scheme, a ceiling level of usage would be put in place and people who do not exceed this would not be liable for any payment. Not only would this be fair and equitable, it would also promote smarter usage of water. The latter is a valuable resource that we often take for granted. A scheme such as that to which I refer would also restore a certain level of control to users. As a result, they could control the amount of water they use and they would not incur any costs until they exceeded their personal free allowances.

According to a study compiled on behalf of Irish Water, the average Irish family uses up to two full bathtubs of water - approximately 150 litres - each day. Most of this is simply wasted by being poured down the drain after use. Some 80% of the people surveyed for the study did not realise the amount of water that they use. An average shower uses approximately 50 litres of water, cleaning one's teeth wastes in the region of six litres every minute and one cycle of a washing machine involves the use of up to 65 litres. This all adds up for the average family of two adults and two children, particularly in circumstances where the children are under a certain age. Put simply, Irish Water estimates that the cost of providing and maintaining water for Ireland runs to approximately €1.2 billion per year. In view of that level of consumption and cost, large families must be granted allowances in order to assist them in meeting their obligations.

I request that the Minister for the Environment, Community and Local Government not only take the suggestions I have made on board but also that he take steps to include an amendment to the Act in respect of this matter in order that what I am recommending be enshrined in law. It is not good enough to state that this is something we would like to include; it must be enshrined in legislation in order that it will work. The only way it will work will be if it is written into law. I look forward to the Minister of State's reply.

Fergus O'Dowd (Louth, Fine Gael)
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Ba mhaith liom athbhliain faoi shonas a ghuí ar gach duine sa Teach.

I am replying on behalf of the Minister, Deputy Phil Hogan, who is currently dealing with legislation in the Seanad. I convey his apologies to the House.

The programme for Government contains a commitment to the introduction of water charges based on usage above a free allowance. The Government considers that charging based on usage is the fairest way to charge for water and it has decided that water meters should be installed in households connected to public water supplies. The introduction of water charges for all users will create a sustainable funding model for the delivery of water services.

The Government has decided to assign responsibility for the economic regulation of the water sector, including the setting of water charges, to the Commission for Energy Regulation. The primary role of the regulator will be to protect the interests of customers and to ensure a consistent and appropriate level of service is provided to them.

I am confident the Commission for Energy Regulation, with its reputation for independence and rigorous oversight of utilities, will protect the interests of domestic and non-domestic customers. An appropriate approach to charging customers will be put in place by the regulator and a public consultation will take place later this year as part of the regulatory process. Households will be informed of the level of charges well in advance of their introduction. No decision has been taken yet on the free allowance. This will be a matter for consideration by the Government and will be reflected in the charging structure put in place by the regulator.

An interdepartmental working group has been established to advise the Government on the appropriate method for addressing water poverty and water affordability issues which, as Deputy Phelan pointed out, may arise with the introduction of domestic water charges. The group will examine the issues arising with regard to the free allowance, affordability issues and specific medical conditions which require high water usage. Supported by the ESRI, the group is seeking to identify the key groups which may be significantly impacted upon by the introduction of water charges.

The group comprises officials from the Department of the Environment, Community and Local Government, the Department of the Taoiseach and the Departments of Social Protection, Finance and Public Expenditure and Reform. The group is to prepare a report for consideration by the Government to enable decisions on the proposed approach to be taken in advance of proposed public consultation by the Commission for Energy Regulation during 2014 on the design of domestic water tariffs.

Ann Phelan (Carlow-Kilkenny, Labour)
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I thank the Minister of State for the comprehensive reply. As public representatives we must be included in the consultation process and lay people must also be included so their voices are heard. Most in this House will be able to afford the water charges better than many people. However, I am very conscious that households must be listened to, in particular those households with elderly people and young children.

Irish Water should take responsibility for setting up an education programme to encourage people not to waste water in the way that I have outlined and which has been the practice in this country for many years. Only now we are beginning to appreciate that water is a vital resource and to appreciate its importance for our health and well-being.

We should encourage water harvesting and the retention of water for secondary uses. Opportunities were missed during the Celtic tiger years when the planning guidelines should have included the provision that every house should have its own water harvesting mechanism. This missed opportunity is another lesson we have learned from the past. I have taken note of the Minister's reply and I hope to be able to contribute to the consultation process.

Fergus O'Dowd (Louth, Fine Gael)
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I thank Deputy Phelan for her comments which are very important. She is absolutely correct that a consultation process which includes listening to people and making them aware of the issues, is the only way forward. This is our job for the next year. The Commission for Energy Regulation will undertake the consultation process but Members will be fully engaged in the process. I can assure the Deputy that we will debate the proposed regimes in the House and people will be able to contribute to the process.

I fully support the Deputy's comments about a campaign to educate and inform the public on how water usage can be reduced and water used more efficiently in households. I have raised the issue of a campaign with Irish Water on many occasions. The benchmark for such a campaign is the Government's Race Against Waste campaign which transformed the way people dealt with their domestic waste. That campaign was extremely important in informing and educating people and it helped to change attitudes. I am assured that the scale and the import of the communication campaign will be at that level and that every household will be supported in this regard. The Deputy is correct that simple actions make the difference.

I refer to the point about the inclusion in the planning guidelines of water harvesting facilities being installed in new houses. I believe it can be difficult to retrofit some existing houses. I will discuss this matter with the Deputy at the committee. I agree that people must be given the information so they understand what is being proposed.