Mick Wallace (Wexford, Independent)
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12. To ask the Minister for Environment, Community and Local Government if he has received correspondence from the European Commission regarding the privatisation of water services here; if he will publish any such correspondence; and if he will make a statement on the matter. [19460/14]

Mick Wallace (Wexford, Independent)
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Given that the Government is due to finalise water charges soon, will the Minister confirm whether he or any other member of the Cabinet has received correspondence from the European Commission regarding the privatisation of water services? The Minister may recall that in late 2012, the office of Commissioner Olli Rehn acknowledged in a letter to civil society groups that the Commission is promoting water privatisation as a condition of bailout programmes.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The programme of financial support with the EU, IMF and ECB provided for the establishment of a national water utility and the introduction of domestic charges. In this regard, the programme partners were kept informed of progress towards the achievement of these objectives. My Department has not received any correspondence from the European Commission on the privatisation of water services.

In a communication issued by the European Commission earlier this year on the European citizens’ initiative, the Commission confirmed that the decision on how best to operate water services is firmly in the hands of the public authorities in the member states, and treaty rules require the European Union to remain neutral regarding national decisions governing the ownership regime for water undertakings.

Section 5 of the Water Services Act 2013 provides that one share in Irish Water is held by Bord Gáis, with the remaining shares held by the Ministers for the Environment, Community and Local Government and Finance. An amendment to this section, introduced by section 46 of the Water Services (No. 2) Act 2013, provides that the three shareholders in Irish Water are prohibited from alienating the shares issued to them. Accordingly, the privatisation of Irish Water is barred by statute.

Mick Wallace (Wexford, Independent)
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I was referring to a letter to which the Corporate Europe Observatory body gained access. It was from Olli Rehn's office to the Greek Minister for the Environment, Energy and Climate Change.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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To whom is the Deputy referring?

Mick Wallace (Wexford, Independent)
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Olli Rehn's office in the European Commission wrote to the Greek Minister. He stated:

As you know, privatisation of public companies contributes to the reduction of public debt, as well as to the reduction of subsidies, other transfers or state guarantees to state-owned enterprises. It also has the potential of increasing the efficiency of companies and, by extension, the competitiveness of the economy as a whole, while attracting foreign direct investment.

Barry Cowen (Laois-Offaly, Fianna Fail)
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He needs no encouragement.

Mick Wallace (Wexford, Independent)
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What is the Minister's personal position regarding the idea of privatising Irish Water? Does he believe it would be a good or a bad idea?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Deputy Wallace can go to Kilmore Quay and fish for that red herring which he has tried to introduce today. I brought in the Irish Water legislation, which was approved on the basis that the Government will not privatise Irish Water. The Government is trying to keep track of its own correspondence and, in the Republic of Ireland, we do not follow or track correspondence between Olli Rehn and other member states.

Mick Wallace (Wexford, Independent)
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In his initial reply, the Minister stated it is illegal for the European Commission to take a position on this matter but it has done so. In addition, it has put pressure on both the Italians and the Portuguese to do this. While the Minister has stated it would be illegal to privatise Irish Water at present, he is aware that the rules introduced under the Lisbon and Nice treaties dictate that no state in Europe can stop privatisation if it chooses to get involved in it.

Jan O'Sullivan (Limerick City, Labour)
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We are a sovereign nation.

Mick Wallace (Wexford, Independent)
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Part of the treaty was designed to facilitate the privatisation of public services. The Minister probably can tell me that it will not be privatised during his time-----

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Correct.

Mick Wallace (Wexford, Independent)
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-----because he probably will be going to sunnier climates soon-----

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Is the Deputy asking my opinion? I do not know where he will be.

Mick Wallace (Wexford, Independent)
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-----but I find it hard to credit. I refer to the entire idea behind not giving the local authorities the money to improve the water infrastructure but instead parcelling it all up into a nice little bundle that can be saleable at a later date.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Deputy.

Mick Wallace (Wexford, Independent)
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The dogs in the street suspect that the next Government will privatise Irish Water.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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While Deputy Wallace may kick any dog he wishes in respect of this issue, he is not getting anywhere with it. The position of the Government is that there will be no privatisation of Irish Water. Perhaps the Deputy may support a Government in the future that may wish to do so or do certain things, but as far as I am concerned and as far as the Government is concerned, correspondence of the European Commission is a complete red herring and I wish the Deputy well with it.