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

There is quite a spectrum of views on the issue. I can understand where different political parties are coming from and I will leave it at that, rather than go through the usual points I might make.

The reality is that our water services cost €1.2 billion annually. Therefore, it costs €1.2 billion to supply water to every house and business in the country. Some €200 million of that comes from commercial returns. In other words, commercial companies pay €200 million, which leaves us to find the remaining €1 billion. We have to do that by reducing the cost of water if we can. That is what Irish Water is about. It is setting up new synergies between local authorities and getting a better deal for the consumer.

The is a difference in this respect. One way a charge could be taken from a worker's pocket is through direct taxation, and the way charges were taken through VAT on houses in previous years was a different way of raising funds. However, we did not have a sustainable way of funding the State and that is the reason we ran into difficulties with the troika and the reason we could not borrow money to pay for our schools, hospitals and everything else. That is reason we have ended up where we are. It is fairer that people who use water pay for it - that the users pay. That is a fair deal, provided that, in line with the key point that was made, consideration is given to low-income families, the issue of affordability, people with medical problems and so on. There will be transparency in this regard.

Senator Barrett asked that the figures be provided. That process has already started and the energy regulator has just finished a consultation document, covering a process spanning a month, on how these charges will be made up and what should and should not be in them. People's views have been sought, and the regulator will advise the Government, having listened to what they had to say, by the end of January. The ball will then be back in our court. While the charges will be implemented in the last quarter of next year, the first bill will not issue until January 2015. There is plenty of time to ensure there is the transparency and accountability that everybody here wants to enable them to query and challenge matters and talk to the regulator. As Members of the Oireachtas, Senators can ask an Oireachtas committee to request that the regulator come before it to explain matters. They can also request that Irish Water come before it to explain matters. Nothing is being rushed here. There is plenty of time for accountability and transparency.

On the question Senator Cummins raised about the standing charge, all utilities have a standing charge. It is not to cover the cost of having a meter but to cover the cost of providing the services to the meter. In orders words, it is to cover the cost of having the infrastructure in place to provide the supply of water to one's house. Whether one uses it is another matter. It covers the cost of bringing the water to that point but does not include the cost of water used by a household. The standing charge would cover the cost of repairing the leaks on the public road and the administration of that process. It is a separate charge from the consumption charge.