Caít Keane (Fine Gael)

We all know the importance of water and the requirement to support economic growth. In Ireland, water is a valuable resource and we have the capacity, if we use it and do not abuse it, to position Ireland well in terms of competitiveness. We should never lose sight of that. We all know the €1.2 billion cost of water and ask whether it is being spent in the best possible way.

I examined the various reports, in particular the independent Mackenzie report on water. The Minister of State referred to desalination on "The Frontline" in recent days but it was not mentioned in the report and I would like to hear some form of recommendation on that. I understand the energy required to use desalination has resulted in two different scientific views, one being that it would heat household water for €60 a year. In Perth, Australia, a desalination plant is being worked from wind farms. If we look forward to having 100% renewable energy in Ireland, we would be able to use a desalination plant to provide all the water we wanted at night and store the electricity to use later. I want to examine that side of the issue.

Today, we are discussing the setting up of the new water authority. I would recommend it is termed in the Irish language rather than the English language, and I ask the Minister of State to consider that. Senator Mulcahy has spoken on the issue of jobs, so I will skip that issue. On administration, the position of the 34 local authorities hinders the development of a co-ordinated approach to the infrastructure. This is one of the main reasons we must consider having a water authority. The quality of water in Ireland is generally high and it would be remiss of me not to compliment the various local authorities which, over the years, have provided us with good quality water. There has been the odd glitch, as in Galway in 2007, a point missed by another Senator. The new septic tank regulation will ensure we have even better quality water.

As to the setting up of Irish Water, will the Minister of State ensure we do not throw out the baby with the bathwater? The assessment which has been done shows that the experienced workforce in place knows the assets, is close to the customers and is accountable for quality. The Minister of State should write accountability to customers into the contract. In the transfer of waste management, we have seen that accountability to customers is not good. I would not like to see the same happening with water.

There are weaknesses in the current system and inconsistencies and variabilities throughout the country. The economies of scale simply are not there to deliver. There has been underinvestment but if the business is undertaken in a central manner, there will be more investment. Local authority boundaries do not reflect the riverine bays and districts that are so integrated in river basin management. I was a member of a local council when it passed the river basin management plans to upgrade the water system. Given there are seven river basins in the Republic, three of which are shared with Northern Ireland, will the new water authority work with the North? The report recommends that the river basin district is the recommended catchment area, rather than the local authority boundary.

If we look at the international experience as part of this work, and compare, even if only with our nearest neighbours in the United Kingdom, Northern Ireland Water and Scottish Water, operating expenditure in Ireland per connection is more expensive at present, by 50% to 100%. Collection rates are much poorer for industrial entities. The number of employees per water connection and per customer are significantly higher than internationally. We must look at this.

Many speakers have mentioned quangos and I will, too, although I hope not to term this new semi-State water body as such. Senator Crown mentioned the number of different bureaucracies and I agree with him. In countries around Europe this is being addressed by amalgamation of municipal water services, the creation of utilities or the use of intercommunal structures. Creation of larger bodies for the provision of water service, often outside municipal control, is a key trend in most European countries in the past 20 years. Has the Minister of State considered the intercommunal model, where several municipalities join together and set up a company to which they delegate the provision of water services? I realise this is not the type proposed by Irish Water but I ask him to consider it.

Self-funding is a priority and most of the companies that have been set up in the past five years in other countries have become self-funding. It is a very attractive option. Consumption of and charging for water are other points. I will not blame the IMF, the EU or anybody else for this because it should have been done long ago. Ireland is the only country in Europe that does not have what is called the "polluter pays" principle. In Denmark, a reduction of 12.6% in household consumption was achieved when that country introduced charges. The average consumption per person per day in Denmark now stands at 114 litres, which is roughly 25% lower than consumption here. That figure refers to a conservatively consuming household.

We will introduce, in effect, a polluter pays charge when the Minister of State introduces this system, with the free allowance, However, in the UK, for example, for households with large families or sick members who may use a great deal of water, there is a support service called a water-share tariff. I ask the Minister to give consideration to that because it is an important part of metering. A person who is sick uses much more water during an illness than another person.