Catherine Murphy (Kildare North, Independent)
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5. To ask the Minister for Environment, Community and Local Government in relation to a letter sent from a multinational company to his Department in February 2012 regarding proposals to install water meters, as released to this Deputy under the Freedom of Information Act 2014 (details supplied), if he will indicate the context and assumptions under which the company made its key proposals; if it was assumed at the time that the soon to be established water utility would be made available for sale eventually, either in part or entirely; the initial contact the letter was responding to; and if he will make a statement on the matter. [22636/15]

Catherine Murphy (Kildare North, Independent)
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I tabled this question on foot of a letter I requested under the Freedom of Information Act 2014. I am seeking clarity on the assumptions behind the departmental position paper to which the letter refers.

Alan Kelly (Tipperary North, Labour)
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The programme for Government included a proposal to establish Irish Water, a State-owned water company that would take over the water investment and maintenance programmes of the 34 city and county councils who acted as water services authorities. The programme of financial support for Ireland with the EU, IMF and ECB also required the preparation of proposals for implementation of the recommendations for an independent assessment of the transfer of responsibility for water service provision to a water utility and the introduction of water charges.

A team led by PricewaterhouseCoopers was appointed through an open competition to conduct the independent assessment.  The first part of this study, the Irish Water phase one report, was published for public consultation in January 2012 along with a departmental position paper setting out the overall approach to reforms in the water sector. This six week public consultation lasted from 16 January 2012 to 24 February 2012 and covered a range of water sector reforms, including the establishment of a new public utility, Irish Water, to take over the responsibility for the delivery of water services from local authorities; the introduction of water charges based on metered usage, with the metering programme to commence later in 2012; and the introduction of independent economic regulation of the water sector under the Commission for Energy Regulation.  The aim in conducting this public consultation was to facilitate a more informed and inclusive debate on the fundamental reforms proposed for the water sector.  These reforms sought to ensure that the appropriate organisation and funding models were in place to deliver water services to existing and future users, while also providing the volume and quality of water and waste water services required to protect public health and support employment. 

The Deputy's question pertains to a letter which was one of the 270 submissions made to my Department in response to this public consultation. All of the submissions, of which 32 were from companies, were published on the Department’s website, together with the implementation strategy for the water sector reform programme in December 2012. I cannot speculate on the assumptions made by the company in question when it was formulating its response to the public consultation. The Government is committed to maintaining Irish Water in public ownership.

Catherine Murphy (Kildare North, Independent)
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I accept that the company is making the assumptions to which I refer but its letter states:

There should however be an exit/separation strategy in the event that the Water utility needed to be in a stand alone position at some time in the future. A key consideration for this approach is the method of providing funding during the start up phase and the impact of the eventual sale.

Alan Kelly (Tipperary North, Labour)
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I appreciate the reasons for the Deputy's questions but I cannot make assumptions on what Siemens was thinking. It is a private company. Similarly, I cannot make assumptions about any of the other submissions made during the public consultation. The letter from Siemens, which I have read, was received during the public consultation phase and raises a number of issues and recommendations on how the establishment of the entity should proceed and how the metering programme should be implemented. I genuinely do not know the assumptions behind its participation in the consultation, nor does my Department. It made its own assumptions and it wrote the letter on that basis. It was a matter for those participating in the public consultation to offer ideas or raise concerns based on their own assumptions. Those assumptions were the company's business, although I do not agree with many of them.

Catherine Murphy (Kildare North, Independent)
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I take it that the assumption that there was ever any intention to sell the utility off is completely its own and had nothing to do with the political approach that was being taken.

Alan Kelly (Tipperary North, Labour)
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Absolutely. I cannot speak on behalf of Siemens which made its own assumptions, and in this case I would say wrongly. I do not know; that is just my opinion. I do not know on what it based its assumptions. I have no idea. As part of an early round of public consultation, it made its decision to submit its letter, offering ideas and concepts. It made assumptions for that. I have no idea on what it based those assumptions. I have no information to suggest it based its assumptions on anything except itself and possibly another party with which it may have discussed putting forward this submission. In many cases I think its assumptions are wrong obviously. As the Deputy knows, I feel very strongly on the whole issue of public ownership. That is the bottom line.