Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Is mór an onóir dom a bheith anseo arís don díospóireacht ar an ábhar tábhachtach seo - uisce agus soláthar uisce don tír go léir. Tá rud speisialta ag gabháil leis an Bille seo agus tá súil agam go mbeidh díospóireacht iomlán againn agus go mbeidh gach éinne in ann dóthain cainte a dhéanamh agus dóthain ceisteanna a chur orm ag Céim an Choiste.

This is an important Bill. I emphasise that notwithstanding the timeframe within which the Bill will be moving, I assure the House that as far as I am concerned Committee Stage should proceed for as long and in as much detail as people wish to examine every aspect of the Bill. If the Committee Stage time is abridged we would be happy to accept amendments with the co-operation and assistance of the administration of the Houses of the Oireachtas Commission to ensure that any point, issue or argument that people wish to make will be fully and properly debated, discussed and voted on, if necessary.

I am pleased to bring the Water Services Bill 2013 before the Seanad today. It is the first legislative milestone in the Government's strategy for the reform of water services provision in Ireland. It provides for the establishment of Irish Water or Uisce Éireann as a subsidiary of Bord Gáis under the Companies Acts. The two organisation names will be interchangeable.

The programme for Government provides for progressive and considerable structural reforms of the water services sector. There are three interrelated components to the Government's proposed reforms for the water services sector and to date the following key decisions have been taken by Government: to establish Irish Water as an independent State-owned company within the Bord Gáis group, based on a public utility model; to introduce a sustainable funding model to support much needed investment in this sector, to include the introduction of water charges for domestic users; and to establish an independent economic regulator for water services, a function being assigned to the Commission for Energy Regulation, CER.

Our water resources are a significant national asset and there have been significant improvements in the quality and capacity of our water and wastewater infrastructure during the past decade. This has been achieved on foot of substantial Exchequer investment through successive water services investment programmes. The Environmental Protection Agency noted in its publication, Ireland's Environment 2012: An Assessment, that our water quality is good relative to other EU countries. A decade earlier the EPA Environment in Focus 2002 report noted that the quality of our rivers was "unacceptably poor" while our groundwater had "unacceptably high levels of contamination". Maintaining these improvements in quality and standards will be a considerable challenge in the coming years against the backdrop of severe restrictions on the public finances, which have seriously impacted on the Government's ability to maintain the previous levels of capital investment. Our valuable water resources also serve to support the success of many water-dependent sectors of the economy, most notably the pharma-chemical, information and communications technology and food and drink sectors.

The key objective of the Government's water reform programme is to put in place structures and funding arrangements to ensure that we have a world-class water and wastewater infrastructure which meets all environmental and public health standards and which is well positioned to attract new foreign direct investment and to support job creation in indigenous companies as well.

The EU-IMF programme of financial support for Ireland includes commitments to introduce domestic water charges and to establish a national water utility. While the Government is committed to introducing water charges, it considers that volumetric-based charging is the fairest approach to charging. The annual cost of water services in Ireland is ¤1.2 billion. Ireland is the only country in the OECD that does not charge for domestic water. The OECD stated in its review of our environmental performance in 2010 that the absence of volumetric charging gives domestic users no incentive to save water and that it perpetuates a low awareness of the real cost of water services.

The Government has decided that Irish Water should be responsible for the installation of water meters for households connected to public water supplies and the Bill provides the company with the necessary powers to achieve this. The metering programme will commence later this year and it will be accompanied by a comprehensive public information campaign.

There is considerable public dissatisfaction with the levels of unaccounted-for water, including leakage from water distribution mains. Investment in recent years has been prioritised on mains rehabilitation and leakage reduction. The metering programme will assist greatly in improving the management of water supply networks and will assist in targeting investment. Experience internationally and in Ireland with the non-domestic sector and private group water schemes indicates that metering will promote water efficiency and conservation by users. The Government is keen to ensure that the interests of consumers will be protected when domestic water charges commence. We intend to provide the Commission for Energy Regulation with the necessary powers to regulate the water sector and to determine the appropriate level of charges.

The Bill provides the commission with the power to advise the Government on the development of policy regarding the regulation of water services.

The intention is that the new policy will be given legislative effect later this year when the Commission will be given full regulatory powers, including the authority to set water tariffs.

I would also like to address the impact of the reforms on the local authority sector and, in particular, on local authority employees. Given the scale and complexity of change involved in this reform process, engagement with staff and unions is critically important and a specific structure, the Irish Water consultative group, has been put in place to facilitate this. Good progress is being made on clarifying issues for staff. During the period to the end of 2017, other than situations where existing staff are recruited to new positions in Irish Water, existing staff will remain employees of local authorities working either under service-level agreements or working on a secondment basis to Irish Water. Where employees are working under a service-level agreement they will carry out their existing role and this arrangement will continue until at least 2017 unless otherwise agreed at the Irish Water consultative group.

Some existing water functions are likely to transfer to Irish Water on establishment or on a phased basis in the period 2014 to 2017. These largely relate to management roles and roles associated with the delivery of the capital programme. It is envisaged that the staff currently carrying out these functions would move to Irish Water on secondment in the period to 2017 and would, therefore, remain as employees of the relevant local authority. During this period, some staff could transfer to Irish Water by agreement. The framework for such secondments or transfers would be considered at the Irish Water consultative group.

Before I set out the provisions of the Bill I would like to address some of the matters which are not specifically provided for in this Bill but which will, subject to Government approval, be comprehensively addressed in more detailed legislation which is under development and which will be brought forward in a separate Bill in the second half of this year. As I said earlier, the Commission for Energy Regulation will be given full regulatory powers later this year. These powers will include the power to examine all costs incurred by Irish Water in the delivery of water services and to determine what levels of tariffs are appropriate for Irish Water to charge for the services. The regulator will be responsible for setting standards of performance for Irish Water and for ensuring that appropriate customer protection measures are in place.

The next Bill will confer powers on Irish Water for the provision of water services which are currently the responsibility of the county and city councils. This would include, inter alia, power to provide water and wastewater services directly, responsibility for strategic planning and delivering investment programmes and powers of examination and survey. It will also provide for the transfer of local authority water assets and associated liabilities to Irish Water. The establishment of an asset base will be an important step in ensuring that Irish Water will, in the future, be able to access financial markets to secure funds for capital investment. The accountability of the company to the Oireachtas will also be addressed in more detail, as well as its interaction with local government and the functions that local government discharges in respect of planning, economic development and emergency management. I know from speaking to members from all sides of both Houses of the Oireachtas that these are critical issues which I assure members will be addressed in the next phase of the legislative programme.

I will now outline the purpose and operation of each section of the Bill. Sections 1 and 2 set out the Title of the Bill and commencement provisions and definitions of terms used in the Bill. Section 3 is a standard provision enabling the expenses incurred by the Minister for the Environment, Community and Local Government for the administration of this legislation to be paid out of moneys provided by the Oireachtas. Section 4 provides that Bord Gáis shall establish a subsidiary company, Irish Water, under the Companies Acts, following consultation with the relevant Ministers. Section 5 outlines that the subsidiary will be known as Uisce Éireann in Irish and Irish Water in English. The shares in the company are to be distributed between Bord Gáis, the Minister for the Environment, Community and Local Government and the Minister for Finance. Bord Gáis will be allocated the only voting share which it will not be allowed to alter without the consent of the two Ministers. The two Ministers will share the remaining shares between them. This share structure will ensure that Irish Water remains in full public State ownership.

Section 6 sets out conditions relating to the memorandum and articles of association of the company and provides that they must be approved by the Minister for the Environment, Community and Local Government, with the consent of the relevant Ministers. Any amendment to the memorandum or articles of association can only be made with ministerial approval. Section 7 is a standard provision and sets out the circumstances in which a director of Irish Water will no longer be qualified and must cease to be a director. Section 8 outlines the standard prohibitions on directors or members of staff of Irish Water holding political office, either at national or European level. Sections 9 and 10 are also standard provisions setting out the requirements for the disclosure of interests by directors or staff of Irish Water of any material interest, in the case of directors, in any arrangement or agreement for consideration of Irish Water and in the case of staff, in their capacity as employees.

Section 11 prohibits the unauthorised disclosure of confidential information by a director, member of staff, consultant or adviser to Irish Water, unless authorised to do so. This prohibition will not apply to the disclosure of confidential information to Bord Gáis however. Confidential information for the purposes of this section includes information expressed by Irish Water to be confidential either as regards particular information or a particular class of information or description and proposals of a commercial nature or any tenders submitted to Irish Water.

Section 12 provides that Bord Gáis and Irish Water may borrow money, subject to the consent of the Minister for the Environment, Community and Local Government, the Minister for Communications, Energy and Natural Resources, the Minister for Finance and the Minister for Public Expenditure and Reform. The aggregate borrowings of Bord Gáis and Irish Water for the purpose of this legislation must not exceed ¤500 million. The section specifies that the borrowing limit is additional to the limits for Bord Gáis set out in section 23 of the Gas Act 1976. Money borrowed in currencies other than the euro will be deemed equivalent subject to the rate of exchange at the time of the borrowing. Money borrowed by Bord Gáis under this section may subsequently be lent to Irish Water.

Section 13 provides that the Minister for the Environment, Community and Local Government may, for the purposes of this legislation, make grants out of money provided by the Oireachtas to Irish Water, Bord Gáis or the Commission for Energy Regulation. Section 14 provides that subsections (1) and (2) of section 21 of the Gas Act shall apply to Bord Gáis, such that the approval of the Minister for the Environment, Community and Local Government and the Minister for Public Expenditure and Reform will be required for capital expenditure by Irish Water above a level to be specified.

Section 15 relates to the accounts of Irish Water. It contains standard provisions on the maintenance by and audit of the accounts of Irish Water and the submission of audited accounts and any other accounts to the Minister for the Environment, Community and Local Government. The accounts must then be laid before each House of the Oireachtas. The section also sets out the arrangements for the appointment by Irish Water of an auditor to audit the accounts and for the ministerial approval of the fees of the auditor. Section 16 provides that by 30 June each year, Irish Water will prepare and submit to the Minister for the Environment, Community and Local Government and the Minister for Communications, Energy and Natural Resources, a report on the performance of its activities in the area of water services in the preceding year. The report must then be laid before each House of the Oireachtas.

Sections 17 to 21 deal with the water metering programme and confers powers on Bord Gáis and the new company as metering authorities. I referred earlier to the Government's position regarding the fairness of volumetric-based charging. In addition to this, the domestic water metering programme will have significant economic and employment benefits. The programme, which is the largest and most ambitious programme of its kind that we are aware of, will commence later this year. It will be preceded by the surveying of domestic water connections at the external boundary of households connected to public water supplies. This work will be undertaken by the local authorities. This surveying work will commence across all local authorities shortly. On the issue of the meter installation works, the Department of the Environment, Community and Local Government and Bord Gáis have already commenced the procurement procedures for the sub-contractors, regional management contractors and equipment for the metering programme, which will be rolled out over a three-year period. Section 17 provides that a reference to a metering authority in sections 17 to 21 means Bord Gáis or Irish Water.

Section 18 provides that the functions of a water services authority with regard to the installation of water meters for dwellings may be carried out by a metering authority in addition to a water services authority. It also provides that other functions of a water services authority may also be carried out by Bord Gáis and Irish Water to the extent that their performance is necessary for the installation of water meters for dwellings. These would include, for example, the power to lay pipes and the power to interrupt water supplies at sections 41 and 51 of the 2007 Act, respectively.

Section 19 provides that the provisions in section 41 of the Water Services Act 2007 relating to the installation of pipes shall apply to a metering authority, subject to the removal of a requirement to obtain the consent of a road authority, which applies when the water services authority is not the road authority. The water services authorities are the 34 city and county councils which are also road authorities. The installation of pipes by Bord Gáis and Irish Water will be exempt from the need to obtain planning permission. This is necessary to avoid causing delays to the metering programme and, having regard to the level of excavation work required to install a meter, planning permission is unnecessary. The Department and Bord Gáis will agree a protocol with the Department of Transport, Tourism and Sport and the local authorities which will specify the standards for the installation works nationwide. This protocol will ensure the highest standards will be applied and will address issues such as traffic management, the quality required for footpath and road reinstatement and health and safety requirements. We all know from our local authority experiences the appalling mess occasionally made in footpath and road reinstatements and the disgraceful way in which some roads were left. This is a key issue.

Section 20 specifies that water meters will remain in the ownership of Irish Water and that Irish Water may not dispose of any property vested in it without ministerial consent. Section 21 states the provisions of section 29 of the Water Services Act of 2007 shall apply to Bord Gáis and Irish Water in the same way as they apply to a water services authority. This provides for the immunity of these bodies and their employees from prosecution arising from carrying out their functions. Section 22 is a standard provision and provides that Bord Gáis and Irish Water will have all the powers necessary or expedient for the performance of their functions.

In order to create an accurate database of the names and addresses of domestic customers, Irish Water will be given the power to request information from other public and commercial bodies which hold similar information. Section 23, therefore, provides that Irish Water and Bord Gáis may request a relevant person to provide them with such information that they may require to perform their functions or that they could be expected to require if additional functions, similar to those vested in a water services authority, were conferred on them. A relevant person may be a local authority, the Private Residential Tenancies Board, the Property Services Regulatory Authority, the holder for the time being of a licence granted under section 14 of the Electricity Regulation Act 1999, the Local Government Management Agency, the Revenue Commissioners, the Minister for Social Protection and any other person prescribed by order made by the Minister for the Environment, Community and Local Government after consulting the Data Protection Commissioner. A relevant person must comply with a request under this section. The section amends sections 6 and 7 of the Water Services Act 2007 such that Bord Gáis and Irish Water will have the same powers to obtain information as a water services authority, as well as the same entitlement to obtain information on ownership as a water services authority. This provision will not exempt Irish Water from the requirements of data protection legislation. Irish Water will agree a protocol with the Office of the Data Protection Commissioner to address the exchange and treatment of any personal information. Discussions have been entered into with that office during the drafting of the legislation and the section includes a provision that the Data Protection Commissioner must be consulted before any proposal is made to extend the list of relevant persons.

Section 24 provides that the Commission for Energy Regulation may do all things necessary or expedient for the purpose of preparing for the performance of water regulatory functions under any future enactment. The functions include functions relating to the setting of charges for water services, the specification of minimum standards of service for the provision of water services and the protection of the interests of a person in receipt of water services. The section also states the commission may advise the Government on the development of policy for regulating the provision of water services. Under the section, the commission may consult Bord Gáis, Irish Water, the water services authorities or any person prescribed by order by the Minister for the Environment, Community and Local Government.

Following enactment of the Bill, the commission will be commencing its work. At the earliest opportunity it will undertake public consultations on a range of issues, including the development of tariff structures, and prepare guidelines on consumer protection measures.

Sections 25 and 26 remove the existing prohibition on charging households for water services as set out in section 105 of the Water Services Act 2007 and section 4 of the Local Government (Financial Provisions) (No. 2) Act 1983, as amended by section 12 of the Local Government (Financial Provisions) Act 1997. Section 105 of the 2007 Act has not been commenced and will not be commenced prior to the introduction of charges, which will not be before 1 January 2014. This amendment is only being made to enable Bord Gáis and Irish Water to undertake functions relating to domestic water charges such as the development of a customer database, the establishment of a billing system and the commencement of consultations with the public and other stakeholders. Section 25 transfers the functions of a water services authority relating to charging dwellings for water services from the water services authorities to Bord Gáis and Irish Water, while section 26 provides for the removal of the statutory prohibition by amending the Local Government (Financial Provisions) Acts.

Section 27 provides for the amendment of section 15 of the Gas Act 1976 in order that Bord Gáis shall keep accounts of moneys received or expended by it in the performance of its functions in relation to this legislation. Section 28 provides that Bord Gáis must submit a report on its activities in the area of water services to the Minister for the Environment, Community and Local Government and the Minister for Communications, Energy and Natural Resources. The report shall be submitted no later than 30 June each year and arrangements will be made as soon as possible after receipt of the report for copies to be laid before each House of the Oireachtas.

Section 29 relates to directions issued by the Minister for the Environment, Community and Local Government. Directions may be issued, subject to the approval of the Minister for Communications, Energy and Natural Resources, to Bord Gáis or Irish Water in relation to the performance of their functions and they must comply with a direction issued to them. It is not the intention that ministerial directions would be issued to the companies, or that such directions would be necessary. However, as the Bill is effectively interim legislation pending the introduction of a more comprehensive Bill later this year, the section is considered prudent to ensure Government policy is implemented appropriately by the companies.

As I stated, this is the first legislative milestone in the Government's strategy for the reform of water services provision in Ireland. It is the first step in what is undoubtedly one of the most fundamental reforms of public services provision. I look forward to engaging with Members on the provisions of the Bill. An important part of this initiative is the creation of 2,000 jobs in each of the next three years as water meters and attendant infrastructure are installed. This will give a significant boost to local economies everywhere. A call centre will also be established to offer customers a point of contact. I understand the call centre will create between 300 and 400 jobs. This investment will, therefore, offer significant benefits in terms of job creation, as well as improving water services.