Seanad debates

Thursday, 20 September 2012

Irish Water and Related Reforms: Statements (Resumed)

 

12:20 pm

Photo of Caít KeaneCaít Keane (Fine Gael) | Oireachtas source

Cuirim fíor-fháilte roimh an Aire Stáit. Ba mhaith liom fáilte a chur roimh an ráiteas faoi Uisce Éireann. Tá mé an-sásta go bhfuil an tAire ag éisteacht linn. Tá sé ráite aige go bhfuil féiniúlacht an-tábhachtach, maidir leis an ainm Uisce Éireann a thabhairt don chomhlacht. Úsáidfidh mé an t-ainm Uisce Éireann in ionad Irish Water. Beidh mé á dhéanamh sin i rith na díospóireachta inniu. Ba mhaith liom go n-úsáidfeadh gach duine an t-ainm Uisce Éireann as seo amach. B'fhéidir nár mhaith leis an Seanadóir Ó Clochartaigh é sin a dhéanamh ach iarraim air é a chur isteach in áit éigin.

I welcome the díospóireacht mar gheall ar Uisce Éireann. One of the most significant issues facing the Government is the provision of good quality water. It is not just about meeting household requirements but about the environment, jobs and attracting the much-coveted foreign direct investors who have an insatiable demand for assured high quality and sustainable water services. Earlier this year the Government proposed to transfer water provision responsibility from the 34 local authorities to a new regulator, Uisce Éireann. I will have a bit to say about the role of the regulator, like Senator Barrett, because on this morning?s Order of Business I raised a matter concerning another regulator. Regulators nearly need to have a regulator watching over them.

The first phase of the work ? an independent assessment of the establishment of the authority ? has been completed by the Department. When does the Minister anticipate the full roll-out of the authority? Does he have a timescale for this process? It is estimated that, on average, ¤600 million a year will be needed to comply with the EU water framework directive. We are not on our own on this as we have to comply with EU regulations. This is good for consumers and the environment. However, as there is no money in the kitty for the vital infrastructure upgrades involved, the funds will have to come from somewhere. Accordingly, water charges and some private investment will be a necessary feature in water provision.

In a submission last April to the Oireachtas Joint Committee on the Environment, Culture and the Gaeltacht, I proposed that any future water facility should remain a public utility. I am delighted the Minister of State, Deputy O?Dowd, reiterated today it would remain in public ownership under Bord Gáis. Clearly reforms are needed and the Government has taken on a radical reform agenda in many areas, water being only one of them.

A recent study carried out by PricewaterhouseCoopers on behalf of the Government found that the current water sector had no consistent policies. We all know some good local authorities and other poor performers in this area. Neither has there been any standardisation of water provision, monitoring, consumer protection, economic regulation or cost effectiveness of provision, as Senator Barrett pointed out. This has to be written into the new arrangement for Uisce Éireann. Water provision has suffered fragmented leadership, poor co-ordination and a duplication of management. There was only a 52% collection rate for non-domestic charges. The PricewaterhouseCoopers report noted operational expenditure was unusually high by UK benchmark standards, particularly in leakage areas.

On the positive side, the study found the current system has some very good strengths. It is important, therefore, we note these so as not to throw the baby out with the bath water. The report noted local authorities are close to the consumer, locally accountable and can mobilise resources in time of need. It needs to be ensured that this local authority expertise is not thrown away. The workforce is experienced and familiar with resources. If a local authority is doing a good and cost effective job in water provision, will the Minister ensure these strengths are not lost?

I am in favour of paying for usage of water. It is common in all EU countries. However, as all new charges are difficult to implement, it will be necessary to have a clear education programme that outlines the benefits that a certain amount will be available free.

Senator Barrett remarked on the cost of meters but let us suppose there is a poor family of six and a rich family of six who have six cars and go out splashing water about. The number of people in a house is not really a factor in the conservation of water. Conservation of water is absolutely important to Ireland because it is finite and, crucially, it is worth paying for.

In a city in the Czech Republic demand for water plummeted by 40% following the introduction of meters. This has been the case in other European countries. We have plenty of rain in Ireland but we lack storage. Sydney has three years of storage. The River Liffey, which currently supplies 83% of water to seven local authorities in the greater Dublin area, is almost at capacity supply for the population. The trend is upwards and the population is growing. When the Leixlip plant will be ready in 2014 the Liffey will be at its maximum deliverable capacity and supply will have maxed out.

Will the Minister indicate whether storage provision will be factored into it when the Minister is making the deal with Uisce Éireann? It is a significant issue further down the line. What we have will suffice until 2022 but we must source water from other facilities and the sourcing issue is another matter.

It should be up to Uisce Éireann to ensure that when sourcing we include scientific information on the type of sourcing we want and up-to-date information on desalination as well. We are an island surrounded by salty water and desalination has always been put down as an expensive commodity. New research is available which has demonstrated that the desalination process has now gone down considerably in cost terms. I hesitate to mention fracking but there are new methodologies for desalination that were not available some years ago. This should be factored into the Uisce Éireann contract and any new research available on cost competitiveness relating to the provision of water and sourcing should be made available.

Water metering has been much speculated upon and discussed. Senator Mulcahy referred to the types of meters and the need for co-ordination and I agree totally. I would go one step further and suggest that we should integrate the energy smart meters with the water meters. We should get the two together and have co-ordination in these areas. I am referring to co-ordination of large-scale meters and getting co-ordination perhaps not in the type of meter but the people who provide the jobs in the area of metering. The Minister of State at the Department of Public Expenditure and Reform, Deputy Hayes, and his Department are doing great work to ensure that local companies and small companies can contract for jobs. We should stipulate the type of meter but spread the provision of services. The Minister for the Environment, Community and Local Government, Deputy Hogan, and the Minister of State, Deputy O'Dowd, have stated they are considering allowing for small contractors to be able to provide services and there are many efficient small contractors who can do this.

I do not have time to go into the health benefits but fluoride was mentioned. The environment committee referred the matter to the health committee in order that we might get a report on the issue. As the regulator has been mentioned, I will not elaborate on that issue. Transparency is all important. In the case of any public contract given out the accounts and annual reports of those involved should be published. I know of a contract given by a local authority to a waste company. Up to then it had been publishing its accounts. Then, in early January this year the company decided that it would not publish its accounts any more but this requirement should be a part of the contract. This relates to waste and it is a matter for the Department of the Environment, Community and Local Government. The company was within its legal entitlements not to publish its accounts but if we are looking for transparency we should seek it in the case of water. Uisce Éireann should be obliged to be transparent; it should be a part of the contract. We should delve further and ensure that all contracts and anyone delivering a service-based State contract are subject to the utmost transparency and all accounts and annual reports are published.

I agree with the comments on Northern Ireland. We have an all-island water wide resource and we should be doing this with North-South co-operation in the basins to which Senator Ó Clochartaigh referred. I am pleased he suggested that we should follow the example of what they are doing in Northern Ireland. I would not follow the example of Sinn Féin on everything it has done or what it is doing in Northern Ireland but the party agrees to charges for water there. What is good for the goose is good for the gander down South. Senator Ó Clochartaigh suggested we should follow Sinn Féin's record in the North. I will take it on water but on nothing else.

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