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

I read the newspapers this morning as well. I understand that the Dublin City Manager said the Minister or his Department refused to come. As I understand it, he was advised that the date of the meeting was one where we would be here in the Seanad. Certainly, I and my officials were unable to attend because we had to be here but we have no problem meeting with and listening to him. That is not an issue.

I will read from the note I have here. It may not necessarily be in the order in which the issues were raised but I think they are answered properly. The local authorities operate a public sector defined benefit pay-as-you-go pension scheme. For most of its staff, under the local government superannuation scheme, new entrants go on to the new single public service pension scheme. Therefore, as pension liabilities fall due at the point of retirement, payments are made from annual current expenditure and contributions made by staff averaging about 6%. The staff that currently work in water services in local authorities obviously already have pension entitlements. These are a future liability on the authorities as things stand. However, the Water Services Bill provides a mechanism for the payment to Irish Water by the Minister with the agreement of the Minister for Public Expenditure and Reform of pension benefits to local authority staff who transfer to Irish Water either now or following the termination of a service level agreement. The service level agreement also provides for the payment by Irish Water of pensions to existing water services pensioners. The only issues arise in the event that a service level agreement comes to an end and the local authority staff working under the agreement do not transfer to Irish Water. In these cases, the liability would rest with the local authority. I stress the next point - the Department has given a commitment to the County and City Managers' Association to keep this under review.

It has given a commitment that individual authorities who do not have the capacity to meet those liabilities will be addressed by an appropriate State subvention. In any case, this will not materialise until the termination of the first service level agreement in 2025.

The Bill provides for the transfer of water service assets to Irish Water. It also provides for the transfer of any loans and liabilities associated with those assets. Since 2009, the Exchequer has provided funding of more than €225 million to Dublin City Council for investment in water services infrastructure in the Dublin region. The Senator commented on the cost of water being higher in Dublin than elsewhere. The Bill provides for the 2013 non-domestic charges in individual local authorities to continue to apply from 1 January 2014 and, as has been agreed by Irish Water and the City and County Managers' Association, to continue to be collected by the local authorities on behalf of Irish Water for the first half of 2014, at which stage Irish Water will assume responsibility for collection.

As we have discussed, the Commission for Energy Regulation will approve the new charges to be levied by Irish Water. It is intended that standardised national charges will be in place for domestic consumers when charges commence from quarter four of 2014. I will include provisions for the Government commitment on the free allowance and any other measures to deal with affordable charges which the Government may decide are necessary.

It is intended that the CER will phase in the consolidation of the non-domestic charges currently being charged by the 34 county and city councils. There will not be an immediate change and they will continue to pay the same next year. The phasing in of charges is the fairest approach as some customers will pay reduced rates while others will pay more. It would not be desirable to upset viable businesses. The Government is very conscious of this issue.

The Bill also provides that the CER must perform its functions in a manner that best serves the interests of the customers of Irish Water. Dublin City Council has not seen the final draft of the service level agreement which will be required. The County and City Managers' Association, of which Dublin City Council is a member, has negotiated the text of the draft service level agreement with Irish Water.

Dublin City Council's legal advice is that the Bill does not prohibit the sale of Irish Water or its assets. The Bill has now been amended by Government amendment No. 78, which was introduced last night, to ensure that neither the Minister for the Environment, Community and Local Government nor the Minister for Finance can alienate the shares issues to them. The 2013 Act already provides that Bord Gáis Energy cannot alienate its share. The Water Services Act 2007 which will apply to Irish Water once the Bill is enacted, already precludes the transfer of water service assets by Irish Water.

I hope I have clarified the issue for Members.