Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit agus a chuid feidhmeannaigh atá anseo le haghaidh na díospóireachta ar an mBille seo, a bhaineann leis an táille a bheidh á ghearradh ar chustaiméirí agus ar thithe ar fud na tíre i dtaca le cúrsaí uisce. Tá a fhios againn go léir go bhfabhraíonn costais nuair a chuireann na húdaráis áitiúla uisce ar fáil. Cosnaíonn sé thart ar €1.2 billiún an uisce sin a chur ar fáil. Tagann thart ar €200 milliún ar ais ó thaobh na táillí uisce a ghearrtar ar lucht gnó na tíre seo. Tá a fhios againn le cois sin go bhfuil fadhbanna ollmhóra i dtaca leis an uisce a chailltear. I accept that certain costs are associated with the provision of water. All consumers want to get top quality water on demand when it is required. They expect the European safety legislation that governs this area to be adhered to. There is no question that providing this service costs money. Before now, that cost was met through the local government fund or through the general taxation mechanism. The legislation that governs this area and allows the Government to charge for water is section 65A(1) of the Public Health Ireland (Act) 1878, which allows sanitary authorities to charge for water. We are seeing the reintroduction of water charges, which were introduced in 1983 and abolished in 1997.

I have a couple of general queries. According to library and research service documentation which has been mentioned by other speakers, 77% of households are connected to the public mains, 9% are connected to group water schemes which are connected to public supplies, 3% are connected to private group water schemes and 10% are connected to other schemes. A small number of units - 2,908 - are not connected to any facility. Can the Minister of State outline whether houses connected to public or private group water schemes will be charged under this legislation? Obviously, charges cannot be imposed on houses that are connected to other private sources, such as wells and rivers. I contend that in the same way, charges should not be imposed on private group water schemes or on those who do not have any connection. I understand the legislation provides that people can be charged for wastewater as well. Perhaps the Minister of State will provide some clarification in that regard. How can charges be imposed on houses without any public drinking water supplies? Maybe it is my reading of it, but I do not think the legislation is clear on the question of wastewater. Will the Minister of State clarify that further? No provision is made in this Bill for exemptions in the cases of people who cannot afford to pay. Regardless of whether we like it, some people will not be able to afford to pay for water.

I would like to move on to speak about charging. The Commission for Energy Regulation has been mentioned. The library and research service has done some work on the position across Europe. The average price of water across many European cities ranges from 40 cent to €5.75 per 1,000 litres. There are huge variations within countries. In Sweden, for example, people in Malmö pay just €1.03 per 1,000 litres whereas people in Gothenburg pay €4.19. What is the Government's policy on pricing throughout the country? Will there be a universal price? According to an estimate that has been provided by the library and research unit, the average level of water consumption in Ireland is approximately 150 litres per person per day. International experience tells us that consumption is likely to decrease by approximately 15% if this change is introduced. That is what happened in England. If a similar decrease takes place here, average water consumption will fall to approximately 127.5 litres per day, or 3,825 litres per person per month. According to the most recent census, some 1.39 million households are connected to the public mains. There are four people living in most of those households. The cost of providing the water is €1.2 billion. The average price across Europe is €1.93 per 1,000 litres per month. This would mean that Irish consumers would pay €7.30 a month, or €87.67 per year. The average household has 2.78 people living in it.

According to the figures I have cited, this measure is likely to take in €339 million per annum. The Government is seeking to generate €500 million per annum, however. If that objective is to be achieved, an average cost of €129.31 per person will have to be imposed for the use of water. If the €500 million target is to be achieved, that theoretically means the average cost per household would be approximately €360. That estimate is based on the figures from the library and research service. I join the Minister of State in praising the thorough work of that service. If we take the figure of €360 per household per annum as an average, we must bear in mind that it will be imposed on top of the property tax and other charges. I have no faith in the Commission for Energy Regulation, by the way. We are living in an era in which the cost of living should come down. Why has the commission allowed the price of electricity to increase by 15% per annum in that context? What will happen if its form to date is encapsulated in what is coming down the tracks with Irish Water? If we assume that Irish Water is to be allowed to do the same thing, I suggest that the average base charge will start from €300 or €360 per household - this is based on the census figure of 2.78 people per household - and will escalate from there. That is all I have to say about pricing.

We are fundamentally opposed to this measure. I accept it was included in the EU-troika programme. Nothing in that programme has prevented the Government from renegotiating part of the Irish Water proposal, especially in light of the constraints households are under at present. Nothing in the troika programme requires the establishment of a quango like Irish Water. The Government is removing democratic accountability. At present, local authority members are able to hold council officials to account. If there is a water burst in a local village, one can contact the local councillor or engineer with knowledge in this regard. Under the new system, one will have to ring a call centre in Cork to report a local burst up the road. That is exactly what is going to happen. When the transfer of responsibilities takes place, there will still be people working in the local authority sector. Between 4,000 and 4,500 people work in the water directorates of local authorities. Can the Minister clarify what will happen when the transfer of responsibilities takes place? Will there be redundancy obligations when people leave local authorities and get 12 year contracts? Who will pay those redundancy obligations? If so, where will that money come from? What will be the cost of those redundancies across the sector?

I ask the Minister of State about section 6 of the Local Government Act 1998, which is being amended in the new local government legislation to allow the Minister for the Environment, Community and Local Government to transfer up to €600 million. I understand from an Oireachtas committee meeting that took place yesterday that €500 million from that fund will be transferred to Irish Water. Can that be clarified? What will that money be used for? How will the shortfall in the local government fund, which is established on the basis of people paying their motor tax, be made up?