Seanad debates

Wednesday, 16 November 2022

Water Services (Amendment) (No. 2) Bill 2022: Second Stage

 

10:30 am

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I will try to address the points raised and I thank the Senators for their positive comments and support for this very important Bill. Senators Boyhan, Moynihan and a number of others raised the issue around workforces in local authorities. Assurances are there for the protection of staff in transition with regard to compulsory transfer. Although this Bill does not deal with that, assurances are given. A referendum was sought by the unions and we will work with the Opposition to bring about such a referendum. It is critically important for all of us that the referendum is brought forward in line and in conjunction with the referendum on housing. The Minister, Deputy Darragh O'Brien, has given a commitment that the memo on the referendum will be brought forward shortly.

Information transfer was raised by Senators Boyhan and Fitzpatrick with regard to the skills we are transferring from local authorities. It is very important to be able to keep and harness local knowledge that has been brought down through decades of involvement of local authority staff. Acknowledgement of the local authority's role was raised by Senator Cummins and others. It is critically important. Senator Fitzpatrick raised the issue of Dublin City Council staff. I know from experience with our own local authority, with which I have always had a fantastic relationship, that there could be a call-out on Christmas Day for an incident and the authority would be there. Local authorities since the foundation of the State have been very thorough in their work.

What we are trying to do in the Bill is support the transition and make sure it happens in a way that is customer focused. That is why the Bill is before us. It is about customer and user focus. Senator Cummins raised issues around transformation. I note the points with regard to small schemes which this Bill does not deal with. Such points have been raised in both Houses and at local council level. There is no doubt a challenge with regard to flexibility and local knowledge. The Senator also mentioned the issue around the delivery of the aspirations in Housing for All and the lag in provision of services and the self-lay programme. The local infrastructure housing activation fund, LIHAF, was a very good scheme by local authorities with regard to front-loading a provision in advance of phased development. That is the way it should be. I take on board the Senator's points. He also mentioned the positive move with regard to the opportunities that this provides for staff. All of that is to be welcomed.

I note Senator Warfield's comments on the impacts of the volume of rainfall, the challenge of which we have faced in the past number of weeks in particular. The matter will impact on water service provision as well. I again give a commitment with regard to the referendum and accountability with appointments through the Public Appointments Service and the accountability of Uisce Éireann to the Oireachtas Joint Committee on Housing, Local Government and Heritage and the Committee of Public Accounts.

At the beginning, I outlined the provisions of this Bill which is focused on separating Irish Water or Uisce Éireann from Ervia and its establishment as the standalone national authority for water services. The Bill provides that Irish Water will be known only by its Irish name, "Uisce Éireann", and will cease to be a subsidiary of Ervia. The Bill acknowledges the character of Uisce Éireann as a national authority of water services with responsibility for the functions assigned to it or under the Water Services Acts 2007 to 2022.

The Bill amends the current shareholder arrangements and enhances its governance arrangements. Significantly, the Bill provides for Uisce Éireann's accountability to the Committee of Public Accounts. This Bill is solely concerned with the legal separation of a parent company and its subsidiary and the setting up of that subsidiary as a standalone company in its own right. The Bill does not in any way deal with the transformation process and the movement to Irish Water of local authority staff who are currently carrying out water services under the service level agreement with Irish Water. This is a separate matter.

The framework for future delivery of water services identified through the engagement in the Workplace Relations Commission, which concluded on 24 June 2022, will impact on approximately 3,200 staff currently serving in the local government service. It is important to note that any transfers of staff to become permanent employees of Irish Water will be on a voluntary basis, as pointed out by Senator Moynihan, and will have no implications for the security of tenure of the staff concerned.Water services staff who choose not to transfer to Irish Water will remain in the direct employment of their current local authority. Their terms and conditions of employment will remain unchanged. These staff may continue to work in water services under the management and direction of Irish Water until 31 December 2026. Local authorities will no longer have any involvement in the direct provision of water services to the public beyond that date. Further opportunities for staff who do not seek to transfer to Irish Water will be identified during the transition period, including reassignment or redeployment within the wider service, where feasible, and upskilling and training programmes.

Regarding the referendum, the Government's vision for a world-class public water system in Ireland based on the full integration of water services in a national water services authority is set out in the policy paper on water sector transformation published in February 2021. Public ownership is central to the vision and is already legally guaranteed. No change to State ownership of Irish Water is currently possible without majority support in a plebiscite of the people in line with the Water Services Act 2014. I reiterate that the Minister, Deputy Darragh O'Brien, expects to be in a position to bring forward definitive proposals on a referendum on water ownership for consideration by the Government in the near future.

The removal of the Water Advisory Body will not give rise to any shortcomings on transparency and accountability in the oversight of Uisce Éireann. The five-member body includes a member from each of the statutory agencies, that is, the CRU, the EPA and An Fóram Uisce, and two external members appointed through the Public Appointments Service, PAS. The statutory agencies will continue to have specific functions in respect of Uisce Éireann's performance. The CRU will continue to be statutorily responsible for ensuring Uisce Éireann performs its functions in an open and transparent manner. Both the CRU and An Fóram Uisce will have statutory functions relating to Uisce Éireann's customers and the quality of services provided to them. The Water Advisory Body currently provides its reports to the Oireachtas Joint Committee on Housing, Local Government and Heritage. On dissolution of the body, the committee will continue to have a role with respect to Uisce Éireann. Indeed, the committee will continue to consider reports or otherwise of all the agencies tasked with oversight and regulation of Uisce Éireann.

As mentioned, due to the introduction of new and complex accountability and auditing arrangements, it is in the best interests of both Irish Water and the Oireachtas that legal separation take effect on 1 January 2023. It is simpler and more straightforward from an accounting perspective that the Comptroller and Auditor General be allowed to start his financial auditing of Irish Water from the start of next year. The Committee of Public Accounts will then be in a position to examine such accounts following the audit of a full year's accounts.

I hope the Bill will continue to receive the support of the House. It delivers on the commitment in the programme for Government to retain Irish Water in public ownership as a national, stand-alone regulated utility. I thank Senators for their contributions and input, the Oireachtas committee and all other participants in the debate. I look forward to further consideration of the Bill's provisions on Committee Stage. I commend it to the House.

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