Pat Gallagher (Donegal South West, Fianna Fail)

Section 27 provides for the transfer of functions from a water services authority to the Minister or other prescribed body, or from the Minister to a water services authority or prescribed body as required. It anticipates, for example, possible changes as arrangements are developed for implementation of the EU water framework directive. Such provision is desirable to leave flexibility for the ongoing development of best administrative practice in the implementation of the directive.

Having said that, I confirm there is no intention that the level of democratic accountability for any transferred function will be diminished. For that reason section 27(1) provides for the authorisation of such a transfer of functions by regulations rather than, for example, by administrative order. The purpose of the Minister to authorise a transfer of functions is therefore governed by section 18(5), which provides that every regulation made by the Minister must be laid before both Houses of the Oireachtas and that either House may pass a resolution to annul it within 21 sitting days.

The Minister is accountable to the Oireachtas in the first instance for any proposal to transfer functions. It will be a matter for the Oireachtas, if it considers that democratic accountability for any function is being diminished by a regulation under section 27(1), to exercise its powers under section 18 to prevent such an occurrence.

Senators Bannon and McCarthy made reference to privatisation. It should be absolutely clear that privatisation of our water services is not being contemplated. Any involvement by the private sector other than in group water services schemes will be as appointed agents of a water services authority under contract to a public private partnership. Indeed, design, build and operate arrangements are now standard in all capital water service investment functions funded by my Department. I had the pleasure of opening a number of schemes in Monaghan recently where I was more than impressed with the success of design, build and operate procedures. It is a great tribute to all involved in group water schemes who consented to the procedures as well as to the officials of my Department and the companies that will maintain and operate schemes for a 20 year period. This does not mean any of the assets will be transferred to any private company. They will remain in our hands.

Public private partnerships will operate on the basis of a contract between a water services authority and a private operator for the provision of services or between a joint water services authority and private sector interests providing the service. In either case, the water services authority will retain overall responsibility for conformity with statutory requirements and exercise its authority through the relevant contracts or legal agreements. Public private partnerships and design, build and operate procedures play an important role and anyone who visits a scheme employing these approaches will be very envious of the quality water being provided. To allay any fears Senator McCarthy has in tabling his amendment, there is nothing in the legislation which points to privatisation nor is it a precursor to such a process.