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

Gabh mo leithscéal. Tá sé ag teacht. Tá sé an-tábhachtach go mbeidh díospóireacht oscailte againn agus go mbeidh seans ag gach éinne a gcuid tuairimí a nochtadh.

This Bill is the second legislative milestone in the Government's strategy for the reform of water services provision in Ireland. The Water Services Act 2013 provided for the establishment of Uisce Éireann as a subsidiary of Bord Gáis.

This legislation represents fulfilment of our programme for Government commitments to introduce a fair funding model to deliver clean and reliable water; to establish a new State-owned utility to take responsibility for water infrastructure; and to advance our commitment to implement a charging system based on usage above a free allowance and a programme of water metering of all households, a programme that has seen approximately 50,000 households metered and that will reduce leakage and demand, cutting production by at least 15%.

The challenges facing Ireland's water sector are not unique. Water demand is rising, supply becoming less secure. Our water bodies need greater protection. By 2030, the world is expected to need 40% more water than will be available. We are distinct from most countries by the level of fresh water available, yet we must turn this benefit to our advantage by creating a world class water sector that can and will attract water intensive industries such as ICT and pharma-chem to Ireland as water stress becomes common elsewhere. In the competitive market for inward investment, we would be well placed as one of the top countries, not only in Europe but in the world, for investment where high water intensive industries are being established. By 2030, our river basin management plans will have been reviewed a further three times and the quality of our water bodies will have to have improved. Environmental and economic regulation of water services must be inter-linked. This Bill plans for the future.

I have read the excellent and well-compiled summary of the Bill by the Oireachtas Library and Research Service. It makes the point that the anticipated increase in our population of 1.5 million by 2030 will have to be planned for and the water supplies will have to be in the right places to meet those demands.

The delivery of water services and new infrastructure through Uisce Éireann, working with the local authorities, which have provided water and wastewater services, will involve a new partnership. It will be a partnership combining the local authorities' expertise in operations with the considerable network and utility management experience within Uisce Éireann through the service level agreements for which this Bill provides. The establishment of a new and sustainable funding model will help to secure the level of investment required to upgrade, repair and expand our public water and wastewater infrastructure. Increased investment, as well as securing supply and protecting our water bodies, will provide thousands of additional jobs, adding to the 1,600 jobs sustained through the domestic metering programme and approximately 400 jobs at the call centre when it is up and running to full capacity.

The domestic charges element to the sector's new funding model will be based on fairness. The OECD has stated that metered charges are the fairest form of water charges. The Government agrees. Work is being progressed on the approach to the proposed free allowance and affordability measures which will be introduced by Government to ameliorate the impact of water charges on domestic customers. There will be clarity for the public on these issues well in advance of the commencement of charges and people will have an opportunity to contribute through public consultations to be undertaken by the Commission for Energy Regulator next year.

Independent economic regulation of water services is essential if we are to ensure water customers are protected and the new utility delivers value for money. I am confident the Commission for Energy Regulation will protect the interests of domestic and non-domestic customers. Its scrutiny of Uisce Éireann's budgets and capital plans and determination of water tariffs will be performed with a view to ensuring services are cost-effective and efficiently delivered. The Environmental Protection Agency's environmental regulation of Uisce Éireann will mark continuity with its existing role in monitoring water quality.

The impact of the reforms on the local authority sector and in particular on local authority employees is an important issue for everybody, not least those who work in the sector. It is a very important issue for public representatives on both sides of the House. Given the scale and complexity of the changes involved, engagement with staff and their trade unions has been critical, and the Irish Water Consultative Group, which was put in place to facilitate this interaction, has played a vital role in moving the reform process forward and in helping to shape key aspects of this Bill.

Uisce Eireann and each local authority will be entering into a service level agreement to provide for the delivery of water services. The initial agreement will be of 12 years duration, and once the first agreement comes to a conclusion, the option of entering into subsequent agreements is provided for. Where it is decided not to enter into a subsequent agreement, the Bill provides for the transfer of staff involved in the delivery of the service level agreement from the local authority to Uisce Éireann.

I wish to address some matters which are not provided for as yet in this Bill but which may be introduced as amendments on Committee Stage. The Department is working with the Departments of Finance and Public Expenditure and Reform and with the Office of the Attorney General on the optimal approach to targeting financial support for the much-needed capital investment, and while the Bill provides that the Minister can make grants to Uisce Éireann, consideration is being given to alternative approaches and an amendment may be required. The Departments and the Office of the Attorney General are also scrutinising the sections of the Bill relating to staffing and superannuation to ensure the interests of staff transferring to Uisce Éireann are adequately protected. If any issues are identified arising from this scrutiny, amendments will be brought forward on Committee Stage. A small number of technical amendments may also be required in Parts 1, 3 and 4 to address drafting issues.

The Department is also considering the requirement for further primary legislation to complete the water services reform programme. In particular it is examining how Irish Water will interact with the local authorities in their role as planning authorities, it is considering how the relationship between the Environmental Protection Agency and Uisce Éireann will develop, and it will be monitoring closely how the new economic regulatory system for water services evolves. If further legislation is required to address any of these matters, proposals will be brought forward for consideration by the Government.

I will outline the purpose and operation of each section of the Bill. Sections 1 and 2 set out the Title of the Bill, its commencement provisions and the 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 for the repeal of certain sections of the Water Services Acts 2007 and 2013 arising from the transfer of functions to Uisce Éireann. It also provides for the repeal of the Local Government (Delimitation of Water Supply Disconnection Powers) Act 1995. The repeal of this Act, together with the provision in Section 15(8) of the Bill, will ensure households cannot have their water supply disconnected. This an important feature of the legislation. We must be very clear that there has to be due process. If people do not pay, there will have to be clear protocols in place to ensure that at the end of the process, people pay for what they use. A jurisdiction in England had people who cannot pay and people who will not pay and it treated customers differently. If a person had what was called "a water property", that was dealt with in a particular way. If one could pay but did not, there was a civil bill system which worked extremely well. At the end of that stage, if further protocols are needed they will have to be put in place. That is a matter for us all to debate and agree on, if we can. The process must be clear, transparent and fair.

Section 5 defines the terms used in Part 2. Section 6 provides that the transfer day may be appointed by order by the Minister for the Environment, Community and Local Government. Section 7 provides for the transfer of functions conferred by the Water Services Act 2007 to Uisce Éireann on the transfer day provided for in section 6. It also provides that water services functions in Part 4A of the Water Services Act 2007 and Part 6 of the same Act, which relate to rural water services, will not transfer to Uisce Éireann. That is an important assurance that group water schemes will remain in the group water sector. Septic tanks and other domestic treatments are not part of the Uisce Éireann focus.

Section 8 provides Uisce Éireann with the power to charge non-domestic customers with effect from the transfer day on the same basis as the local authorities had charged those non-domestic customers prior to the transfer day. This section will only have effect up to the date of the commencement of section 16 which requires Uisce Éireann to charge customers in accordance with the water charges plan, which will be subject to the approval of the Commission for Energy Regulation. The section effectively provides for the roll-over of the non-domestic water charges currently levied by the local authorities until such time as the commission approves Uisce Éireann's charges next year. The commission will consult publicly on the approach to non-domestic tariffs.

Section 9 provides that the provisions of section 29 of the Water Services Act 2007 shall apply to Uisce Éireann. It confers immunity to Uisce Éireann and its employees from prosecutions arising from carrying out their functions under the Bill.

Section 10 provides that the local authorities will continue to have powers, which transfer to Uisce Éireann under section 7, which are necessary for the performance of local authority functions under the 2007 Act. These functions relate to septic tanks and rural water services.

Section 11 provides that actions of a water services authority which commenced before the transfer day but not completed may be carried on and completed by Irish Water, where this action relates to a function transferred under section 7. This would include matters such as planning applications or an Environmental Impact Assessment.

Section 12 provides for the transfer of the property of the water services authorities to Irish Water on a designated property vesting day or vesting days, in other words, they will not all transfer on the same day. The power to transfer is contained in the Bill. The transfers will be facilitated through ministerial orders under this section. Property will include assets such as land, buildings, water services infrastructure, vehicles, pipes, sewers and moneys. A provision is included for the Minister to request any information required from a local authority to enable him decide upon the making of a transfer order. I am aware that Senator Brennan raised an issue with Louth County Council about community facilities attached to a water services facility, such as sports fields or playgrounds. I understand that if there are social activities on properties that will be respected. A Fianna Fáil Member of the Oireachtas raised the question of the use of water by Tidy Towns committees. We will seek clarity on these issues.

Section 13 provides for the transfer of rights and certain liabilities, associated with the property transferred from the water services authorities to Uisce Éireann. Examples of the type of rights and liabilities referred to would be leases, licences and wayleaves. Senator Landy raised that point during the discussion on the earlier Bill.

Section 14 provides for the transfer of other liabilities of a water services authority, namely, those not provided for under section 13, to transfer from the water services authorities to Uisce Éireann . Liabilities transferred under this section shall be designated in a ministerial order.

Section 15 provides for the transfer of staff from local authorities to Irish Water. Such transfers would take place following consultations between each individual local authority and Irish Water. The intention is that this section will only apply to local authority staff involved in the delivery of water services as part of an agreement made between the local authority and Irish Water under section 24, and would only be applied following the termination of such an agreement, that is, after the first 12-year period. There is also a period of consultation. The people concerned must be notified six months in advance and the Bill provides for representations to be made and for discussions to take place with the appropriate personnel.

Section 16 provides that Uisce Éireann shall charge each customer in receipt of water services. The charges to be levied under this section shall be calculated in accordance with a water charges plan which will be published. Uisce Éireann will be prohibited from cutting off a water supply to a dwelling arising from non-payment of water charges. Irish Water will be empowered to disconnect a non-domestic user where water charges remain unpaid and will also have the power to reduce the supply of water to all customers where charges remain unpaid. The power to disconnect a customer from a water supply or to reduce a water supply to a customer will be subject to the approval of the water charges plan under section 17. The section provides that charges will not apply for water supplied to a fire authority for the performance of its functions. It also provides that for the purpose of charging, the owner of a premises will be presumed to be the occupier of that premises unless it is proved to the contrary. I am sure that Irish Water will be reasonable and fair if a business is in difficulties. Irish Water must get the money, but the local authorities use discretion.

Section 17 provides that Uisce Éireann is to prepare a water charges plan setting out the manner and method for the water charges to be applied under section 16. This water charges plan must be submitted to the Commission for Energy Regulator by Uisce Éireann and the commission will have the power to approve or reject the water charges plan. The water charges plan will contain the charges to apply where the charges are based on the quantity of water as measured by a meter or where the charges are assessed based on a formula to be set out in the plan. The plan must specify the charges to apply to different classes of customers and the different methods of payments for customers. Uisce Éireann will, in common with other utility service providers, put in a place a wide range of payment methods and options to facilitate its customers. I think it is very important to have that level of engagement, and have the capacity to meet the needs of consumers. The section provides that water charges will apply to water supplied to a premises and waste water discharged from a premises. The section specifies that unless agreed otherwise between Uisce Éireann and a customer, the amount of waste-water discharged from a premises will be deemed to be equal to the amount of water supplied to the premises. An example of the type of households that would need to differentiate would be those that are in receipt of a water supply from Irish Water but are discharging wastewater to their own septic tanks or similar systems.

Section 18 is a standard provision to define terms used in Part 4 of the Bill. Section 19 provides that Uisce Éireann shall take the necessary steps to amend its memorandum and articles of association to ensure that they are consistent with this Bill. The Water Services Act 2013 set out conditions in relation to the memorandum and articles of association of Irish Water and provided that they must be approved by the Minister for the Environment, Community and Local Government, with the consent of the relevant Ministers. The 2013 Act and this Bill provide that any alterations to the memorandum and articles of association require prior ministerial approval and consent.

Section 20 provides that the Minister for the Environment, Community and Local Government may issue a direction to Uisce Éireann, requiring it to comply with Government policy or policies as specified in the direction. Directions shall only be issued by the Minister after first consulting with the Minister for Communications, Energy and Natural Resources.

Section 21 is a standard provision providing for the recruitment of staff by Irish Water, on terms and conditions to be determined by Uisce Éireann. It provides that Uisce Éireann shall have regard to Government policy in relation to the remuneration and conditions of employment of its staff. In light of the current controversy in the health institutions, that is an important point.

Section 22 provides that Uisce Éireann shall prepare a scheme or schemes for the granting of superannuation benefits to staff recruited by Irish Water from a local authority. I stated earlier that the Department and the Office of the Attorney General are examining this section to ensure that the interests of staff transferring to Irish Water are adequately protected.

Section 23 provides that the Minister may make payments to Uisce Éireann in relation to the superannuation costs of members of staff of a local authority accepted into the employment of Uisce Éireann. This funding will cover the financial liability in relation to the service of such staff with local authorities, ensuring that it does not fall to local authorities, given that the functions and assets have transferred to Uisce Éireann and does not fall to Uisce Éireann to fund, which would restrict its capacity to fund necessary investment in infrastructure.

Section 24 provides that Uisce Éireann may enter into service level agreements with the local authorities in order that a local authority can provide services on behalf of Uisce Éireann. The Minister is given the power to direct Uisce Éireann and the local authority to enter into such an agreement and to specify the functions to be included in an agreement in relation to such a direction. An agreement under this section may include provision for the standards to be met by a local authority in the delivery of services on behalf of Uisce Éireann and the provision of payment by Uisce Éireann to a local authority for these services.

The initial agreement between Uisce Éireann and a local authority will be subject to reviews after two years and seven years, respectively. It is intended that the initial agreement will be of 12 years duration unless there is significant failure on the part of the local authority to provide the services under the agreement.

Section 25 provides for the preparation of codes of practice by Uisce Éireann which will be subject to the approval of the Commission for Energy Regulation. The codes of practice shall make provision for customer service standards, billing, methods of payment of water charges, the provision of information to customers of Uisce Éireann and any other matters deemed necessary by the commission. I have looked at websites of water supply companies in the United Kingdom, in particular Anglian Water. They help to get the message out to consumer on how they can reduce their water usage. Hints and aids to reduce water consumption is a key issue. Tools such as social media are very important for engaging with people. There must be proper engagement, not just through the traditional way of engaging, but through websites and social media so that people get the message and best possible information on how to reduce their bills.

Section 26 provides that Uisce Éireann shall, on or before a date to be directed by the Minister for the Environment, Community and Local Government, prepare a water services strategic plan which it must submit to the Minister for his approval. The water services strategic plan will set out the objectives of Uisce Éireann in respect of the 25-year period following the approval of the plan and the means by which it proposes to achieve those objectives, including in relation to the following: drinking water quality; prevention of risk to public health and the environment; existing and projected demand for water services; and conservation measures.

In preparing a water services strategic plan, Uisce Éireann will have to ensure, as far as practicable, that the plan is consistent with the national spatial strategy, regional planning guidelines and river basin management plans. The water services strategic plans must also have regard to a range of other policy considerations including proper planning and sustainable development, housing strategies, strategic development zones and water quality plans.

The section provides that the strategic plans should be laid before each House of the Oireachtas and published on the Internet. It also requires that the implementation and operation of the plan be kept under review at least every five years.

Section 27 provides that Uisce Éireann shall prepare investment plans setting out where it considers investment in infrastructure is necessary for the effective performance of its functions. In developing the investment plans, Irish Water shall take account of the water services strategic plan prepared under section 26 and a range of other policy considerations including local area plans, regional planning guidelines and strategic development zones. Before preparing an investment plan, Uisce Éireann will be required to consult with the Environmental Protection Agency, regional bodies in respect of whose functional area the investment plan is likely to apply and each planning authority in respect of whose functional area the investment plan is likely to apply. Copies of the investment plan must be submitted by Uisce Éireann to the regional and planning authorities. The first investment plan shall be prepared for the two-year period after the transfer date. Future investment plans shall be for durations to be determined by the Commission for Energy Regulation.

Section 28 provides that Uisce Éireann may borrow money for the purposes of the Act. Such borrowings are subject to the consent of the Minister of 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 of moneys borrowed under the section is limited at €2 billion. The existing borrowing limit for Irish Water is €500 million which was set in the Water Services Act 2013 that conferred responsibility on Uisce Éireann to undertake the domestic metering programme.
NewERA has advised the Government on the funding requirements for Uisce Éireann. It recommended that the revised limit is appropriate having regard to level of loans and liabilities that will be transferred from the local authorities to Uisce Éireann, the loan arrangement between Irish Water and the National Pensions Reserve Fund in respect of the domestic metering programme and NewERA's projections of other capital investment requirements that Uisce Éireann will have to provide for over the next few years.

Section 29 provides that the Minister of the Environment, Community and Local Government may, for the purposes of the Act, make grants to Irish Water or to the Commission for Energy Regulation. In determining the provision of any grant under the section, the Minister shall take into account the capital investment plan provided to him under section 27.

Section 30 provides that the CER shall, in the first instance, perform its functions in a manner that best serves the interests of the customers. The commission will be required to have regard to the need for Uisce Éireann to be able to finance its activities, to ensure the continuity, safety and sustainability of water services and to ensure that costs are recovered from the users of water services in accordance with the EU Water Framework Directive.

Section 31 provides that the CER shall advise the Minister on the development and delivery of water services. Section 32 provides for the preparation of strategy statements by the commission and the submission of revised strategy statements to the Minister every three years.

Section 33 provides that the Minister for the Environment, Community and Local Government may issue a policy direction to the Commission for Energy Regulation. This is based on a similar provision in the Gas Regulation Act 1999. Before the Minister issues any direction, a draft of the proposed direction must be given to the commission and the Oireachtas joint committee. A direction issued under the section shall also be published by the Minister in Iris Oifigiúil.

Section 34 provides that the commission may request information from Uisce Éireann that it requires to perform its functions under the Act and that Uisce Éireann must comply with any such request. It also provides that the commission enter into an arrangement with the Environmental Protection Agency for the purposes of administrative co-operation.

Section 35 provides for amendments to the Electricity Regulation Act 1999 arising from the assignment of water services functions to the CER. Sections 36 and 37 provide for amendments to the Water Services Act 2007 and the Water Services Act 2013, respectively. Section 38 provides that Irish Water is required to prepare an annual report on the performance of its functions in the 2013 Act and this Bill. The annual report is required to be laid before the Houses of the Oireachtas.
Last year the OECD published its report on water reform. It stated that sustainable funding, effective governance and coherence between water and sectoral policies are the building blocks of successful reform for getting the basics of water policy right. With the Bill we are putting building blocks in place and introducing a funding model to secure the investment required for security of reliable water supply. We are creating the governance structures that will enable partnership, efficiency, as well as customer and environmental protection. By bringing greater co-ordination between water policies and other policies across local, regional and national levels we can plan for a more sustainable future.

There are few things more fundamental to any society or economy than water. Táimid ag déanamh ár ndícheall sa Bhille seo i dtreo is go mbeidh go leor uisce á sholáthar do theaghlaigh, do chomhlachtaí agus do fheirmeoirí na tíre seo, go dtiocfaidh an t-uisce sin chucu chomh luath agus chomh maith agus is féidir, go mbeidh an tseirbhís nua féaráilte do gach duine agus go mbeidh an córas measartha ó thaobh cúrsaí sláinte phoiblí agus an timpeallacht.

I look forward to the debate. I am happy to consider all issues that are raised here and to have an open debate. At Committee Stage we will have an open and full discussion on all issues of concern to everybody. I look forward to the contributions that will be made by the Senators. Go raibh maith agat.