Jim Walsh (Fianna Fail) | Oireachtas source

On that point, which goes to the core of this amendment, owning the shares in a company is only as valuable as the company itself. A company owns assets consisting of fixed assets, goodwill and revenue stream, which is probably classified under goodwill. I notice the Minister did not answer my questions so I will ask them for the third time and will continue to do so until I receive answers. Does the Minister accept, in this scenario, that the company can dispose of any of its assets that could realise shareholder value? For example, the company could sell goodwill or sell off some assets and retain others. We have seen what other public utilities, such as EirGrid, have done with assets, such as distribution. My point is that models exist so we do not have to reinvent the wheel. Nothing in this legislation prevents such a disposal of assets and the shareholder, the State, could benefit from the capital sum accruing from the revenue stream. We are merely asking the Minister to acknowledge that this is the case.

My other point must be of concern to the Minister and the Department. Investment in infrastructure is required and this will be secured on something; I do not believe Irish Water will obtain unsecured loans of the hundreds of millions of euro necessary to improve infrastructure. This brings the revenue stream into play as I do not see any other valuable assets from a lender's point of view. In a default situation, a lender could gain control of the revenue stream and charges. Given its management system and financial structure, Irish Water faces issues relating to its future viability. This all arises due to the changes that have been made to the original proposal, although I agree with those changes. Charges can change and that can affect viability.

On Second Stage, I asked whether an exercise was carried out in the Department prior to the establishment of Uisce Éireann but this was not answered. If such an exercise was carried out, what internal rate of return was predicted? What internal rate of return is now predicted, based on the changes to the revenue stream?