Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

-----and the start date for domestic water charging is being deferred until 1 January 2015, with the first bills to issue from April 2015. The restructured water charges system retains one of the reform programme's principal objectives, which is water conservation. As outlined earlier, in addition to the water conservation grant, metered households will be able to pay less than the capped charge if their metered usage is lower than the relevant capped charge level. Households that do not have a meter installed on 1 January 2015 will commence paying the relevant capped charge. If, after moving to a meter, their usage for the first year is less than the relevant capped charge level, the household will be due a one-off rebate on the amount it paid before moving to a meter. This will be automatically calculated by Irish Water and normally applied as a one-off credit to the customer's account.
The revised package of measures will provide households with certainty about charges until the end of 2018. The system is now a simple one, with only three important numbers that are relevant, the two capped charge rates and the conservation grant. What is more, the system is affordable for all. The absolute maximum net cost is just over €3 per week and for single households it will be approximately €1.15 per week. Water charges in Ireland are among the lowest in Europe.
The Government has made a number of important additional changes to earn greater public confidence in the water sector reform programme. To enhance its commitment to public ownership of Irish Water, which is already enshrined in the Water Services (No. 2) Act 2013, the Government will legislate to ensure that if any future Government sought to change this position it would be required to put the matter to a special referendum of the people. Having a strong governance structure for Irish Water is essential to building confidence in the new utility. The Government will shortly move to put in place a unitary board combining Irish Water with its parent company, Ervia. The new board will provide for stronger governance and improved setting of strategic objectives. Advertisements are already in place on the new public appointments website stateboards.ie. The Government will also establish a new public bill-payers' forum to advise Irish Water on service expectations and provide valuable feedback on investment priorities.
I welcome the decision of the board of Ervia not to proceed with its performance-related award mechanism for 2013 and 2014. I commend my colleague, the Minister for the Environment, Community and Local Government, Deputy Alan Kelly, on establishing the review of the pay model as the number one priority for the new board when it is constituted.
According to the UK's energy regulator, the average notional cost of providing water and sewerage services to each domestic household in Northern Ireland is £412 in 2013 to 2014,which equates to approximately £1.13 per day. I state this to draw comparisons. Although the Northern Ireland Executive has delayed the introduction of water charges, it must be pointed out that the Executive's 2011 to 2015 budget states:

[I]n Northern Ireland [water] services are currently primarily funded from public expenditure. This creates pressures in other areas ... for example [funding for] health and education ... need to be diverted to cover the associated water service costs.

That is an important point, as this Government has been criticised for establishing the Irish Water model, as proposed. The Government has been at pains to explain that if it is not done this way, it will give rise to more pressure on the health, education and social welfare budgets. What is happening in the North of Ireland is an admission that water services there are competing for the same funding as all other Departments in the North. This is leading to a distinct lack of funding for water services in Northern Ireland, something that the Government cannot allow to happen in the Republic. However, those who say that households in Northern Ireland do not pay for water are incorrect.

The independent water review panel estimated back in 2006 and 2007 that the average domestic property contributed approximately £160 from its annual rates bill towards the cost of providing water and sewerage services in Northern Ireland. That is more than any household in the Republic of Ireland will have to pay for its water. This analysis was accepted by the Northern Ireland Executive, of which Sinn Féin is now a member.

In conclusion, the public water system in this country is in need of radical change. This can only be achieved through a new sustainable funding structure which requires those who use the services to make a contribution. Despite all the debate and discussion we have had on Irish Water in recent weeks and months, we are not hearing one credible alternative being put forward by the Opposition. We have had calls from all Opposition parties to scrap Irish Water and water charges as well. The question needs to be asked, however: where would that lead us? It is quite obvious that it would lead us back to the old, broken system run by over 30 local authorities around the country, with almost 50% of treated water leaking into the ground before it reaches people's taps. This is totally unsustainable.

The Government has listened to the people and understands their concerns. The new reformed system has addressed people's concerns. I have no doubt that in years to come Irish Water will become a trusted and well-respected national utility, much like the ESB. We must remember that the ESB experienced similar opposition when it was being established back in the 1920s.

I will be happy to listen to statements from Senators on all sides. It is important to do so. The Government has shown that it is listening. I will respond to the debate at a later stage.