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

To take the last point first, it is the duty of the Oireachtas to ensure that due process is carried out with regard to all annual reports brought before it. I appreciate that the Senator is talking about day-to-day expenditure, but the accountability of Irish Water under the legislation is to the Oireachtas in terms of its annual report. I have no doubt the report will be subject to annual, if not more frequent, debates. I also expect that Members of the Oireachtas will insist on the representatives of Irish Water appearing before the Oireachtas on a regular basis so Parliament can carry out due diligence on all the issues.

The regulator is the Commission for Energy Regulation, CER, and it will carry out the function of regulating water. On Senator Barrett's point, there will have to be transparency and accountability from the regulator and to the regulator. In terms of the development plans, what must be improved and what will be allowed in the budget, Irish Water will present a budget for the operating costs and the plan for reducing the amount of unaccounted for water, which is very important. All of that will be put before the regulator. The regulator will have to give an indicative decision on how it proposes to deal with it and on what it thinks. Senator Barrett's point is germane. The regulator will carry out due diligence on what the costs are and will hold Irish Water accountable for all of those. There cannot be any hidden costs and the regulator's job will be to ensure that this would be the case.

The third point is that the guarantee is not automatic. In other words, if funds must be guaranteed, the Department of Finance and the Department of the Environment, Community and Local Government will carry out their due diligence on them as well. There is the regulator, the Oireachtas and the Departments to ensure that the process is accountable and transparent and that there are no hidden costs.

Senator Reilly asked about meters. We did a cost benefit analysis and an indicative cost when we put the process out to tender. It is currently out to tender so it is not possible to say now what the actual cost is, because that could lead to increases rather than reductions in expenses for the taxpayer. However, when the decision is made and the meters are costed there is no reason that there should not be full accountability and transparency. Obviously, the Department did a cost benefit analysis and that would be available, as well as everything relating to that. This will only work on the basis that it is transparent and accountable, and that there is full and proper vigilance on the cost of Irish Water.