Tony Mulcahy (Fine Gael) | Oireachtas source

That proposal was to provide a new structure for providing water. In addition, this has been EU policy since Directive 2000/60/EC, also known as the EU water framework directive, which was adopted in October 2000.

An article in the June 2012 edition of Public Affairs Ireland Journal dealt with the water framework directive and many of the issues facing Irish Water today. The article was by Alice Whittaker, head of the environment and climate group of Philip Lee Solicitors, which advises local authorities, as well as Irish and multinational companies, operating in the water and wastewater sectors. The article states that the directive

sets out a legal framework for the improvement of water quality on a ?River Basin District? basis throughout Europe. Member states are required under the Directive to carry out an economic analysis of water use for each River Basin District. This analysis is required to include all costs, not limited to the cost of supplying drinking water and providing waste water treatment services. In relation to managing the cost of water, article 9(1) of the Directive requires member states to ?take account of the principle of recovery of the costs of water services, including environmental and resource costs, having regard to the economic analysis conducted according to Annex III of the directive and in accordance in particular with the polluter pays principle."

The Directive also requires that, from 2010 onwards, water pricing policies should provide incentives to use water efficiently and ensure an adequate contribution by different water users desegregated at least into industry, agriculture and households. Ireland is the only OECD country which does not currently charge households directly for water use, save for the approximately 8% of the population comprising group water schemes. Additionally, commercial water rates have been levied for years. Since the installation of water meters in commercial premises, businesses are becoming more aware of the amount of water they consume. In April this year the Local Government Audit Service reported that ¤160 million was owed to local authorities in unpaid water charges. That is money that, if collected and ring-fenced, could have been used to repair many miles of obsolete water pipes. The relevant point is that partnering with an existing utility service provider gives us that basis. It is already collecting quite a large amount of money throughout the country. It is a shared services model that I believe will work.

When the new body has been established, the issue relating to water meters will have to be addressed. Ennis Town Council employed a contractor to install meters in recent years. Unfortunately, almost 500 of these meters had to be replaced due to problems of one kind or another. The reasons for this may relate to the two severe winters we experienced in 2009 and 2010, the depth at which the meters were laid or the fact that they were just not fit for purpose. There is a need for a national specification with regard to the type of meter and the method of installation to be used. I firmly believe that the current system whereby 34 individual local authorities and many district water schemes are installing different types of meters is not working. In Shannon, the town in which I live, meters were installed six inches below ground. When I raised this issue I was informed that meters are supposed to be installed a minimum of 1 m below ground. In some of the Nordic countries, meters are actually installed up to four or five feet underground.

I agree with certain aspects of what Senator Daly stated. In that context, it is critical that a standard type of meter should be installed throughout the country and that such meters should be installed to a standard depth. This would help us avoid the fiasco that occurred during the two bad winters we experienced in recent years when meters throughout the country failed and pipes burst. The latter resulted in massive levels of water loss.

Since the establishment of the new body was announced a number of months ago, issues have been flagged by experts in the field of engineering. For example, engineers who work for Dublin City Council indicated that up to one third of properties in the capital are not suitable for meters. This is as a result of the fact that such properties operate off shared supplies. The Government believes that the figure is more likely to be closer to 20%. Even then, it should stop the roll-out of meters. Methods will have to be devised that are fair to both consumers and the suppliers of water to the properties to which I refer. This may well be an issue that will arise in other large urban areas. If we are going to become involved in partnerships with particular companies or bodies, then the latter must identify solutions to problems such as those to which I refer. Finding such solutions is their job, not the job of Government.

There are those who are extremely opposed to the introduction of water charges. These people are entitled to their opinion. However, I have yet to hear them state how they propose we should pay for the new reservoirs, wastewater treatment plants and pipes that will be required if we are to conform to EU obligations. The Government was not responsible for breaking the country's economy. Rather, it was elected to sort out the mess that was left by others. Those who are of the view that we can simply make the billions of euro required to upgrade our water systems appear, as if by magic, are not being honest with taxpayers. As a result of the fact that the finances of the country have collapsed, we will be obliged to carry out the work to which I refer with much less. Capital investment in 2011 was ¤435 million and in the current year it will be ¤371 million. It is predicted that it will have fallen to ¤296 million by 2014. If previous Governments had implemented the provisions of the water framework directive during the boom, then many of the issues that have arisen would already have been addressed. Those who were in government previously do not want to hear that but it is the grim reality.

I firmly believe that Irish Water will, under the direction of Bord Gáis, create a water services industry of which this country will be proud. Regardless of how much we might wish it were so, this will not happen overnight. However, it will happen and we will be left with a quality water services industry. A critical matter in the context of metering relates to building code regulations. As stated, all new meters must be a standard model and they must be installed to a particular standard. Those that are already in place will have to be retrofitted because we will otherwise run into more difficulties if we experience further extremely cold winters in the future.