Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I thank the Ceann Comhairle for selecting this item. I want to bring it to the attention of the Minister of State and the House as a whole that the process of transferring non-domestic water billing from local authorities to the entity known as Irish Water will commence by the end of next week. It has chosen counties Monaghan and Meath as the first counties to participate in the transfer process from local authorities. Irish Water will write directly to all non-domestic water customers in counties Monaghan and Meath shortly, after their account information has been transferred, to inform them of these changes.

It beggars belief not only that it has been decided to proceed with the transfer of responsibility from local authorities to the entity known as Irish Water now, but also that this change is coming into effect while the newly appointed water charges commission is readying itself to commence its work, which includes addressing the future of domestic water charges and the future of Irish Water itself. While some people would argue the toss on this decision and suggest it relates merely to the funding of Irish Water, I would contend that funding is the critical element of this entire issue. The question of whether to give Irish Water the oxygen of funding will determine whether it will continue to breathe as a structure into the future. The policy of proceeding in this manner at this point, thereby giving Irish Water what seems to be a lifeline, has not received any public attention of which I am personally conscious. I suggest that in light of this approach, it is no wonder that so many people have lost faith in politics and the political process. The process of allocating funding directly to Irish Water from the local authorities, which is getting under way, will be viewed by many people as a very inappropriate and underhanded move at this time, especially in light of the Government's decision to suspend the accruing charges for domestic water provision.

We have to recognise that the water charges commission is getting down to its work under its new chairperson, Kevin Duffy, who has replaced Joe O'Toole after his recent decision to stand down from that position. I agree with the views of those who have expressed understandable annoyance because they believe the so-called expert commission is structured to give a specific result. When the Minister, Deputy Coveney, commented on the appointment of Kevin Duffy, he said that the new commission will have "a wealth of experience in addressing complex, intractable issues". I suggest there is nothing complex or intractable about the issue of domestic water charges or the future of Irish Water. The people made their decision patently clear in February. I ask the Minister not to allow the transfer of the billing and accounting process to proceed at this point. We should await the outcome of the commission's deliberations and make an informed decision in the full light of what it may have to say.

Damien English (Meath West, Fine Gael)
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I thank Deputy Ó Caoláin for raising this issue and giving me a chance to bring some clarity to it. This process will affect his county and my county in the first instance. As it is rolled out, it will affect other counties as well. Irish Water has been responsible for public water services with effect from 1 January 2014. The Water Services (No. 2) Act 2013 provides that Irish Water shall collect charges from its customers in receipt of water services provided by it. Accordingly, the collection of water charges is now the statutory responsibility of Irish Water. Local authorities continue to bill for non-domestic water services as agents of Irish Water under service level agreements. Irish Water has recently begun the migration of account administration for non-domestic services on a phased basis from local authorities to its internal customer systems. Counties Meath and Monaghan are the first to migrate, with all others to follow on a phased basis.

The Water Services (Amendment) Bill 2016, which is currently before the Oireachtas, has been drawn up to legislate for water elements of the confidence and supply arrangement that was agreed with Fianna Fáil in the context of its decision to support a minority Government. It is clear from the arrangement document that Irish Water will be retained as a single national utility in public ownership for the delivery of water and wastewater services. It is very clear that Irish Water is here to stay. The Bill before the Oireachtas provides for a straightforward suspension of domestic water charges.

There is no question over how public water and wastewater services are to be delivered into the future. The approach is accepted and Irish Water will remain our national water utility. The Bill before the Oireachtas simply provides for the necessary space to allow an informed, balanced and rational debate on the funding of domestic water services to be undertaken, which is respectful of all positions. It does not have a predetermined outcome. The expert commission is there to examine international best practice and to advise members of a committee of this House on what is the best way to approach the delivery of water services and the costs involved in that. The Bill does not provide for any changes to the current water charging regime for non-domestic customers. Since 2001 national water pricing policy has required local authorities to recover the costs of providing water services from all non-domestic users of those services. This policy provided for charges based on actual metered consumption and is consistent with the requirements of the Water Framework Directive. Local authorities currently bill non-domestic customers on behalf of Irish Water and charges recovery rates are low.

Currently, there is variance across the country in how non-domestic customers are billed, both in tariff type and level of tariff. There are 44 tariff structures, with more than 500 tariff points in place for non-domestic water and wastewater services. The harmonisation of non-domestic tariffs should lead to greater certainty and simplicity for businesses and other non-domestic customers about the structure and level of charges. This will also help to make our economy more competitive. Harmonising tariffs should also ensure that businesses pay their fair share of the costs of providing water services in a fair manner across the country, not based necessarily on their address. However, it is a complex issue which requires considerable analysis and consultation. The Commission for Energy Regulation, CER, the economic regulator of Irish Water, will commence a public consultation on this matter in due course.

As I stated earlier, local authorities have continued to bill non-domestic customers for water services as agents of Irish Water under service level agreements. Irish Water is now commencing the process of migrating the responsibility for account administration for existing business customers from local authorities to the utility. This was always envisaged under the implementation strategy for reform of the water sector and having regard to Irish Water's statutory responsibility. Irish Water has engaged with relevant stakeholders and business representatives groups in advance of the migration and will continue to do so as the nationwide roll-out progresses. I also wish to reiterate that the draft legislation currently before the Oireachtas provides for a straightforward suspension of domestic water charges to allow time and space for informed discussion and deliberation on the future funding of domestic water services only. There is no question over the position of Irish Water as the national water utility, nor does the Bill propose any changes to the system of non-domestic water charging and billing.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Minister's response is not only disappointing but also revealing in some respects. He made it patently clear that the Water Services (Amendment) Bill currently before the Houses is indeed a product of the Fine Gael and Fianna Fáil Government arrangement.

Damien English (Meath West, Fine Gael)
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There is no secret about that.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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What we are seeing now is the outworking of this in terms of the transfer of non-domestic water provision and billing from local authorities to Irish Water. It is no wonder it is happening now when one considers the figures for payments to Irish Water for the first quarter of 2016, which show a reduction of 45% on the previous quarter of paid accounts for domestic usage. In fact, in the first quarter of 2016, it only managed to secure a 27% payment rate. In other words, 73% of domestic users across the State have withheld payment. It is a very loud statement to the Fine Gael Government supported by Independents and, as the Minister confirmed in his reply, by Fianna Fáil, which campaigned clearly and unequivocally in the general election campaign in February for the abolition of water charges and Irish Water. Fianna Fáil has clearly rolled back on its position and the Minister is clearly indicating that the future of the Irish Water entity is guaranteed into perpetuity. However, it is not guaranteed. One of the responsibilities of the commission is to consider the funding of Irish Water. That is the oxygen for whether it survives. It should not, and I again call on the Minister not to allow this process to proceed.

Damien English (Meath West, Fine Gael)
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To be clear, the Bill before the House relates to water, not to the Irish Water utility. The single water utility remains, and the Government has no intention of changing that. We strongly believe in the concept of a single water utility delivering the service and infrastructure requirements throughout the country, for both the domestic and non-domestic sectors. I have no doubt that in time, when people review this, they will see it was the right decision to establish a single water utility such as Irish Water to deliver best practice, efficiencies and effectiveness in this area and to bring the infrastructure in the country for water and wastewater up to the high standard required to facilitate growth in business, jobs and housing supply. I wish the Deputy would not try to confuse the matter because there is no doubt. The Bill before the Oireachtas does not relate to the future of Irish Water, the single water utility.

It is quite correct to continue the process of collecting the non-domestic charges. The Deputy is trying to suggest that this is being done to improve its funds. The non-domestic water charges were being collected on behalf of Irish Water under a service level agreement with local authorities. The money was still coming in but now Irish Water will be billing directly for that service. That transfer begins with Meath and Monaghan.