Seanad debates

Wednesday, 4 December 2013

Water Services (No. 2) Bill 2013: Second Stage

 

1:35 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Cé go gcuirim fáilte roimh an Aire, ní chuirim aon fháilte roimh an mBille atá os ár gcomhair inniu, mar sílim go bhfuil sé éagórach ar an dream sa sochaí nach bhfuil an oiread sin acmhainní acu agus go bhfuil muid ag dul i dtreo príobháidiú na seirbhísí uisce.

The Water Services Bill (No. 2) is like its predecessor, an inherently flawed and draconian document. The Water Services (No.1) Bill established Uisce Éireann as a subsidiary of An Bord Gáis Éireann, a company which this Government said it intends to sell off. This new company will be given power to install water meters and to charge families for the water they use. In Denmark, with a population similar to our own, water metering is in place and in 2007, the average cost per household was €715. The water services Bills do not take into account people on low incomes or even those currently living in poverty. Under this legislation, poor households will be charged the same for their water as An Taoiseach, Enda Kenny or, as the Minister of State said, the chief executive officer of the company who earns €200,000 a year. This is shameful and it betrays a complete and utter lack of consciousness about issues to do with environmental justice. Any development - including that of our water system - which ignores the essential needs of the poorest people, whether in this country or abroad, is not sustainable.

According to a major report by the British Chartered Institute of Environmental Health, a household spending of over 3% of income on water charges is at risk of water poverty. The report, Water Poverty in Wales and England, found that UK households in the lowest three income deciles spend on average 3% of their net income on water bills whereas the average spend for all households is just 1%. The report states that large water bills have the potential for causing significant deprivation. However, despite international evidence, this Bill does not even attempt to protect low income families and those who are regarded as vulnerable.

Sinn Féin is against the privatisation of water and against the introduction of charging for water. The establishment of Irish Water, along with the imposition of water meters and water charges, is, at best, ill thought-out. It transpires that meters cannot be installed in one third of households in Dublin. This will also be the case in many parts of the country. If water meters equal water conservation, then the Government has a serious problem.

The Water Services (No. 2) Bill sets out the legal basis for domestic charges, thereby facilitating the Government in the introduction of water charges and water metering. However, we need to see the Government-sponsored drive towards water metering in the context of overall Government policy. Sinn Féin condemns the wave of cuts of water investment planned from 2012 onwards, as outlined in the Government's plan for capital investment for the period 2012 to 2016. Capital investment in water services is being cut from almost €435 million in 2011 to €331 million in 2012. This is a cut of €100 million or almost 25% and a cut of nearly €200 million on the 2010 allocation, with more cuts planned until the budget is just €266 million.

The budgets of consecutive Governments have brought extreme financial pressure to bear on families. Water metering has an immediate and negative impact on low income families. When taking the poverty levels and income distribution in Ireland into account, it is obvious that water charges will have a significant impact on households and their income. Sinn Féin agrees that we need a co-ordinated approach on the island of Ireland towards ensuring that water is brought to where it is needed when it is needed. We must ensure that homes and communities are protected against the adverse effects of flooding from too much water. Currently in this State, there are 34 local authorities supplying water to nearly two million households. Sinn Féin agrees there needs to be better co-ordination but Sinn Féin is opposed to water charges on the island of Ireland. The current proposal to install water meters and charge households for water was dreamed up by Fianna Fáil, brought to life by Fine Gael and supported by the Labour Party.

Fianna Fáil stated in its National Recovery Plan 2011-14 that part of the expenditure savings package would arise from the introduction of a scheme for the metering and charging of domestic water. Overall, it is anticipated that these measures could lead to annual savings of up to €500 million per annum.

The Water Services (No. 2) Bill 2013 sets in train a process that will see 1.3 million holes drilled outside people's homes and water meters installed using money from the National Pensions Reserve Fund, NPRF. These households, which are currently paying taxes for the water they use, will have to pay again for the same water. This means that residents will be paying three times for each glass of water they drink - first through their income taxes, second through the NPRF investment and third through water rates.

The installation of water meters will prove to be costly and inefficient. Experts, including the local authority professional officers, have estimated that €1.2 billion will be needed to cover the cost. In England, private companies are still attempting to install water meters 20 years after they were first introduced. The Bill has nothing to do with water conservation and everything to do with taking more power away from local authorities and centralising it ahead of preparing for the full privatisation of our water service. The Bill is nothing more than a Trojan horse for privatisation. The Minister of State has claimed that it is not the Government's intention to privatise, but those intentions easily change when opportunities arise.

Sinn Féin has actively campaigned against water charges in the past and we will redouble our efforts to ensure that these charges end up in the rubbish bin of history. Sinn Féin fully understands the challenge that lies ahead for the water sector, but the Government has used the crisis as an opportunity to promote its right-wing agenda of charging ordinary people for the use of something they already own and pay for through their taxes. Our approach is different. It is based on ensuring that water provision remains in public ownership and is paid for through progressive taxation. Sinn Féin proposes investing money from the NPRF in creating real jobs that have a positive legacy. The money being wasted on meters should be invested in upgrading an ageing, leaking water distribution system. The €500 million referred to in the Bill would fund the water conservation strategy for six years. This would be a far more appropriate investment than meter installation.

The water sector is managed by the 34 local authorities. The move to Irish Water will not improve accountability or governance. Local authorities are accountable to their communities. They are able to meet local demands and can provide solutions to local crises and emergencies. With the establishment of Irish Water, the water sector will no longer be accountable to elected public representatives or the public they serve. To register a complaint or raise a concern, one will no longer go to a local councillor. Rather, one will telephone an 1800 number for a call centre that has no connection with local authorities.

The State's water distribution network is antiquated. A decade of underinvestment means that more than half of the water in some local authority areas is leaking away. It is not the householder, but the network that is the main culprit when it comes to water waste. It needs to be replaced.

With average leakage at a staggering 41%, we understand that there needs to be an increased level of capital spending. While the Minister of State's proposals are focused on the domestic householder, there is no mention of the debt owed by the commercial sector, where only 52% of water rates are collected.

The crisis facing water supply does not start or finish at the Border. Recognising that river basin districts cover both sides of the Border, it is essential that there be co-ordination of the water sector. We need to develop an all-Ireland strategy on water provision.

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