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Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Okay, that is fine. This is my last question. Mr. Tierney mentioned the possibility of €2 billion in savings in the coming years. Could he elaborate on that? How does he see that being achieved? I do not wish to get into the debate begun by Deputy O’Donnell, but at the moment, when local authorities fix pipes or take up a water main-----

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: -----or a section of pipe, the expenditure is met from current costs. In the new arrangement, if 20 m of pipe needs to be replaced, will Irish Water take the view that the pipe is good for 20 years and that the expenditure should be capitalised and not be part of current costs? Will Irish Water say how wonderful it is and say it has cut 50% off its current costs because, in effect, the cost...

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: It is good to hear that. I will ask the regulator for his view on what is a capital cost versus what is a current cost that has to be met from current billings.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Mr. McGowan has just contradicted Mr. Dempsey.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Mr. Dempsey has given me the impression that if he lays a new pipe, it will be a current cost.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: If Irish Water goes out to fix a broken pipe and it is decided to replace 30 m of the pipe, it is easier to do that-----

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: What is the threshold? Mr. Dempsey must have an accounting policy.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: That is fine.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: What is the figure?

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Therefore, any job that costs more than €1,500 will go on the balance sheet-----

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: That is why-----

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Yes. This is my final question. Mr. Dempsey knows where I am coming from. If there is a burst pipe and it is replaced, then there is a new pipe. Is that an asset?

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: I thank Mr. Dempsey.

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: This is the last question. Bord Gáis has a difficult history of disconnecting customers. Will Irish Water be as ruthless as Bord Gáis in disconnecting customers? People are disconnected from their gas or electricity supply. Every Deputy in the country has been contacted by distressed people who have been cut off. Will Irish Water do the same to its customers?

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: Does it provide for what some counties call a restrictor on the pipe or what others call a limiter?

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: It allows one to get a drop of water every second but it might take two days to fill an electric kettle. Mr. Tierney could say a customer has not been disconnected. I wish to make the situation clear. It is established local authority practice that water cannot be cut off. When people do not pay their bills the local authorities put a restrictor on the pipe. Mr. Tierney knows that very...

Public Accounts Committee: Oversight of Irish Water: Discussion (15 Jan 2014)

Seán Fleming: I compliment Mr. Tierney on a very good answer to that question. That is it.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 11 - Department of Public Expenditure and Reform (Revised)
Vote 12 - Superannuation and Retired Allowances (Revised)
Vote 14 - State Laboratory (Revised)
Vote 16 - Valuation Office (Revised)
Vote 17 - Public Appointments Service (Revised)
Vote 18 - Shared Services (Revised)
Vote 19 - Office of the Ombudsman (Revised)
Vote 41 - Office of Government Procurement (Revised) (15 Jan 2014)

Seán Fleming: Perhaps we will group our questions within the time limit.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 11 - Department of Public Expenditure and Reform (Revised)
Vote 12 - Superannuation and Retired Allowances (Revised)
Vote 14 - State Laboratory (Revised)
Vote 16 - Valuation Office (Revised)
Vote 17 - Public Appointments Service (Revised)
Vote 18 - Shared Services (Revised)
Vote 19 - Office of the Ombudsman (Revised)
Vote 41 - Office of Government Procurement (Revised) (15 Jan 2014)

Seán Fleming: I will make all my remarks in a single intervention. Perhaps Deputy Mary Lou McDonald would be able to ask all her questions together. I note in his opening address the Minister stated the Government has indicated that in the course of 2014 it will undertake comprehensive reviews of both current and capital expenditure.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 11 - Department of Public Expenditure and Reform (Revised)
Vote 12 - Superannuation and Retired Allowances (Revised)
Vote 14 - State Laboratory (Revised)
Vote 16 - Valuation Office (Revised)
Vote 17 - Public Appointments Service (Revised)
Vote 18 - Shared Services (Revised)
Vote 19 - Office of the Ombudsman (Revised)
Vote 41 - Office of Government Procurement (Revised) (15 Jan 2014)

Seán Fleming: That will be done in advance of the budget. I presume that will allow increases in expenditure ceiling. Will the deficit targets still remain the same? I have a number of specific questions on the Estimates, which flow from the Department's briefing document. The Minister has tried to create the impression that things are at the same level, but the provisional outturn last year was...