Cyprian Brady (Fianna Fail)

I welcome the Minister of State, Deputy Pat The Cope Gallagher, to the House. It is good to see him again as he always pays close attention to what goes on here. I also thank the Minister, Deputy Cullen, for his contribution, which gave a clear indication of where we are going with the Bill.

I do not have much experience of the rural aspect of this issue, but in Dublin and other major urban areas the provision of water on tap is taken for granted. Nobody gives any thought to where the water comes from, how it gets there or what is in it. The Bill is replacing a raft of legislation and regulations which date not only from the last century, but from the previous one. It is interesting to read the Bills cited in the Schedule to the Bill, such as the Dublin Corporation Waterworks Acts 1861, 1874 and 1878. That is the legislation we are working on. The Waterworks Clauses 1847 and 1863 and the Water Supplies Act 1942, which dealt with the abstraction of water from a supply source, also jumped out at me. We go right through to the Environmental Protection Agency Act 1992 and regulations from Europe. EU directives cover a wide range of areas, from the quality of water for human consumption to the issue of waste management and the use of sludge in agriculture. The Bill deals comprehensively with these directives.

After many years of neglect in this area, investment in water services has grown enormously. The unprecedented growth in the economy has resulted in a corresponding growth in consumption. Investment in the Water Services Investment Programme 2000-2006 will increase from €1.24 billion in the previous programme to a planned expenditure of €4.4 billion in the coming years.

The programme consists of three main elements — the provision of major public water and sewage schemes, an upgrading of rural and group schemes and the provision of assistance to local authorities to assist them to meet the requirements of all EU directives, including the waste water treatment and drinking water directives. The previous speaker referred to the role of local authorities in this regard. When it suits, a distinction is made between the input of officials and that of councillors who are elected to represent the people and have an input into the councils' operations and policies.

I am a member of the Joint Oireachtas Committee on the Environment and Local Government. The scrutiny of EU legislation is an important aspect of our work and these detailed documents require close attention.

It is interesting to examine where the money comes from for investment in this area. In the previous programme which covered the period 1994 to 1999, some €712 million was provided by the Cohesion Fund; another €77 million came from the European Regional Development Fund and a further €425 million came from the Exchequer. The position is considerably different this time around. A projected €285 million of the planned €4.4 billion will come from the Cohesion Fund and €71 million from Structural Funds. This is a huge reduction in EU-sourced funding and the shortfall must be taken up by the Exchequer. A number of speakers referred to the improvements that have taken place in recent years. In 1997, Exchequer funding was €206.637 million. By 2002, this had risen to €492.55 million.

A distinction must be drawn between domestic and non-domestic or commercial users. I speak from a Dublin perspective. The polluter pays principle must apply. Under the legislation, local authorities will have wider powers to monitor, inspect and charge non-domestic users, as well as having the power to fine abusers of the system. An example was given where abuse of the system resulted in an individual having to subsidise the supply to others. This is a serious problem in many of the industrial estates in Dublin and it needs to be tackled urgently.

A comprehensive programme of training and technical assistance will be available as well as support services for rural water schemes and the development of IT systems. Technology was also referred to earlier. There has been an impetus towards having more serviced land banks around the country. It is essential that we use whatever technology is available to enhance and improve services nationwide.

Water conservation, an issue in which we all have a role, is also addressed in the Bill. A comprehensive national water survey in 1996 found that up to 47% of water was unaccounted for, in the sense of its being lost to the system. A great deal of investment has been made in repairing systems and conserving existing supplies around the country.

The Minister, Deputy Cullen, referred in particular to Dublin. Increased supply and a comprehensive leakage control campaign have counteracted the shortages that were heretofore a regular feature of life. It was a standing joke in Dublin that in a country with so much rain, the officials in the then Dublin Corporation invariably signalled water conservation measures due to drought conditions between May and September. The solution proved to be to reduce wastage in the system. Wastage in Dublin has been reduced from 47% to 29%. The reduction in Donegal has been from 59% from 39%. In Kilkenny, wastage has been reduced from 45% to 29%. The Bill underpins the powers to take action against consumers, especially non-domestic consumers, and to enforce the conservation of water, which is in everybody's interest.

I recently visited the new water treatment plant in Ringsend, which is a wonderful project. While it was very expensive, it will definitely pay dividends. It is an investment on which we are certain to get a return. This project increased the capacity for treatment of waste water to a population equivalent to 1.7 million making it the largest plant in Europe. It treats all waste water, both domestic and commercial, for the entire Dublin region. This will improve the water quality in the bay which may result in Dublin becoming the only EU capital with a blue flag. This state-of-the-art plant is well worth a visit.

I visited a number of waste treatment plants in Switzerland last year. This is a country with a large chemical industry which treats all its water. As Senator McCarthy pointed out, a huge cost is incurred by citizens as it is an expensive process. The manner in which Dublin City Council has tackled this issue is a prime example of how it can be done efficiently and cost effectively and the council is to be commended on this.

The quality of drinking water is also referred to in the Bill. The 2001 Environmental Protection Agency report concluded that the overall quality of drinking water had a compliance rate of 94%. Both capacity and supply have increased since then. We cannot become complacent on this important matter. A link is evident between the pressure on demand and the quality of water. The Bill puts in place a comprehensive framework to deal with unaccounted for water caused by leakage. There has been a notable increase in treatment and storage capacity around the country between 1997 and 2002.

I particularly welcome the Minister of State's comments on privatisation and charges. He has made it clear that this Bill does not make any attempt to address either of those possibilities. Had he listened to the Minister of State, Senator McCarthy would have realised the intention is to continue improving the service to the population at large. I commend the Minister of State and his officials on the production of the Bill.