Seanad debates

Wednesday, 16 November 2022

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

 

Question proposed: "That the Bill be now read a Second Time."

10:30 am

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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On behalf of the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, I am happy to have the opportunity to outline before the Seanad the Water Services (Amendment) (No. 2) Bill 2022. The purpose of the Bill is to separate Irish Water, otherwise Uisce Éireann, from its parent company, Ervia, and to establish it as the stand-alone national authority for water services. The Bill delivers on the programme for Government commitment to retain Irish Water in public ownership as a national stand-alone regulated utility.

The Minister for Housing, Local Government and Heritage is the majority shareholding Minister for Ervia, which delivers strategic national infrastructure in the areas of gas and water through its subsidiaries, namely, Gas Networks Ireland and Irish Water. The establishment of two separate State companies to operate the gas network and develop our water services provides the optimal solution to meet the future challenges of decarbonising our energy supply and modernising our water services. The decision to separate Irish Water from the Ervia group is in the best strategic interests of the water services and gas networks businesses.

Following legal separation, the remaining Ervia-Gas Networks Ireland business will predominantly, both in terms of activities and revenue, be the operation, maintenance and development of the gas networks and interconnectors that are in its ownership. Separately, my colleague, the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, is developing legislation to provide for the integration of Ervia with its subsidiary Gas Networks Ireland to become a single entity, Gas Networks Ireland. That legislation will be presented to the Houses of the Oireachtas in due course. The Bill is about separating Irish Water, the subsidiary, from its parent, Ervia. It does not deal with the transformation process and the movement of local authority services staff to Irish Water. That is a separate and distinct policy process being progressed in parallel.

The 2021 policy paper on water sector transformation charts the course for completing the institutional reform programme by fully integrating water operations within the organisational structure of Irish Water. The transformation of Irish Water into the publicly owned national water services authority has the potential to create new jobs and training programmes. The framework for future delivery of water services, identified through engagement at the Workplace Relations Commission, WRC, which concluded on 24 June 2022, will now enable Irish Water to work in conjunction with local authorities and current water services staff to complete the integration of public water services into its own organisational structures by 2026. A paper entitled "Irish Water Transformation - the Wider Policy Context" was shared with unions on 18 July 2022 to reflect the engagement outcomes, and is available to Senators in the Oireachtas Library.

The Bill concerns itself with the technical aspects of separating Irish Water from its parent. As such, it makes no provision for a referendum on water. The wording of a referendum is focused on ensuring that the entity tasked with operating the public water system, that is, Irish Water, must always remain in State ownership. The Government will consider a referendum proposal on water ownership in conjunction with the anticipated recommendation of a proposed referendum on housing from the commission on housing. The Minister, Deputy Darragh O'Brien, intends to bring forward proposals on both referendums to the Government for consideration in the near future.

This is a relatively short Bill, comprising four Parts, 31 sections and one Schedule. It is largely a technical Bill. Part 1, covering sections 1 to 4, inclusive, addresses preliminary and general matters. Part 2, which takes in sections 5 to 26, inclusive, provides for the reorganisation of Uisce Éireann and provides that Uisce Éireann will no longer be a subsidiary of Ervia. The Bill provides that Irish Water will be known only as Uisce Éireann and it outlines the character of Uisce Éireann - the national authority for water services. The Bill provides for a change in the share ownership arrangements such that the shares in Uisce Éireann are held by both the Minister for Public Expenditure and Reform and the Minister for Housing, Local Government and Heritage, similar to the approach for other State-owned bodies.

A new non-executive board of Uisce Éireann and its chief executive are now being prescribed in primary legislation rather than in Uisce Éireann's constitution. One of the new directors will be nominated by the Irish Congress of Trade Unions. The Minister, Deputy Darragh O'Brien, intends to appoint Mr. Tony Keohane as the chairperson of the board of Uisce Éireann. Mr. Keohane is currently the chairperson of the Ervia board. On separation, he will cease to be chairperson of Ervia and will be appointed as chairperson of the enduring Uisce Éireann board. This appointment is critical as the new Uisce Éireann Board transitions from being governed by its parent, the Ervia board, to being a fully independent board. Mr. Keohane's experience will be essential in ensuring continuity at a time when Uisce Éireann is undergoing significant changes, including the separation and transformation processes. Similar to the chairperson, the Minister intends to appoint some other existing Ervia board members to the enduring Uisce Éireann board on separation. A public appointments process was recently undertaken to identify candidates to fill vacancies on both the Uisce Éireann and Ervia boards. It is intended that both boards will include members with the appropriate skills and competencies necessary, as well as overall compliance with the code of practice for the governance of State bodies and its annex on gender balance, diversity and inclusion. This will ensure a smooth transition for the new board of Uisce Éireann.

The Bill provides for enhanced accountability and auditing arrangements such that Uisce Éireann will be subject to a dual audit by both the Comptroller and Auditor General and its commercial statutory auditor under the Companies Acts. It also provides that Uisce Éireann will be accountable to the Committee of Public Accounts. This dual role arises out of the provisions of the companies legislation, Irish Water's governing legislation and the Comptroller and Auditor General's legislation. The heightened levels of accountability and transparency applying to Uisce Éireann are commensurate with the level of Exchequer funding of the company. As a consequence of this policy change and the overlap in functions, the Bill provides for the dissolution of the Water Advisory Body. The Committee of Public Accounts is best placed to hold Uisce Éireann to account and to consider the transparency and accountability of Uisce Éireann and its performance. Uisce Éireann's chief executive and its chairperson will be nominated persons to give evidence before the committee. In view of the introduction of complex accountability and auditing arrangements for Irish Water, the Minister, Deputy Darragh O'Brien, is anxious to ensure that legal separation takes effect from 1 January 2023.

The Bill removes Ervia's functions in respect of water services. Provisions for the transfer from Ervia to Uisce Éireann of those staff, rights and liabilities, contracts and records which relate to functions of Uisce Eireann are also included.

Part 3, which takes in sections 27 and 28, deals with the dissolution of the Water Advisory Body, which will cease to have advisory and reporting functions on 1 January 2023 when Uisce Eireann becomes accountable to the Committee of Public Accounts. From a governance and transparency perspective, the Water Advisory Body will complete its work in respect of 2022 while statutorily in existence. An appropriate period is being given to the advisory body to complete its outstanding reports prior to its formal dissolution, which is expected to take place on 28 February 2023.

Part 4 takes in sections 29 to 31, inclusive. The Schedule is the final Part of the Bill and deals with consequential amendments to other legislation.

In conclusion, I am thankful to the Joint Committee on Housing, Local Government and Heritage for the detailed pre-legislative scrutiny that was afforded to the general scheme of the Bill in September 2021. I am glad to say that the Bill reflects the committee's recommendations. Since 2013, Irish Water has carried out its water services functions under the umbrella of its parent company, Ervia. This Bill allows Irish Water - Uisce Éireann - to function as the stand-alone national authority for water services. I look forward to Senators' contributions as we progress the Bill through the House.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I will be brief. I thank the Minister of State for coming and setting out all aspects of the Bill. We discussed this Bill in great detail in the Joint Committee on Housing, Local Government and Heritage. I see Senators Cummins and Fitzpatrick here and we have had a lot of engagement on the Bill.

I confirm my full support for the Bill. It makes sense. As the Minister of State said at the outset, it is a technical Bill. Much of it follows through in terms of the governance issues around water and, as we now will call it, "Uisce Éireann". It is a nice, appropriate name for it.

There are two issues I want to flag to the Minister of State that he touch on briefly. These are perhaps take-home messages for the Department. I am concerned that there has not been a final resolution to issues around the workforce in the 31 local authorities. I am aware it is ongoing. It is being dealt with through the unions and through arbitration and various other means. I would like that to be resolved. There is an issue there.

Historically, these would have been employees of the 31 local authorities. I am supportive and I understand, but I am also conscious that as part of any reform we have to move forward. I would just like it to be known. I do not doubt that the Minister of State is committed like everybody else in this Chamber but it is important that we include them and try and resolve those issues because it is about information transfer. The workers have considerable knowledge of the water systems and the flaws and the faults and all the deviations in terms of water. I would be keen that that progresses as much as possible. That is the really important issue that I want to bring to the debate.

I wish the legislation well and it has my full support.

Photo of Mary FitzpatrickMary Fitzpatrick (Fianna Fail)
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Cuirim fáilte roimh an Aire Stáit. Tá an-áthas orm tacú leis on mBille seo. On behalf of the Fianna Fáil group in the Seanad, I am pleased to welcome and support this Bill. It is an important piece of legislation.

The Bill provides for Irish Water to be separated from Ervia and to allow it to act as a stand-alone national authority for water services. This develops on the commitment in the programme for Government to retain Irish Water in public ownership - something that my party has campaigned for and is committed to - and to retain it as a national stand-alone regulated public utility. The Bill ensures that any acts carried out will be in the best public interest.

We all recognise that water is an essential public service and, as such, retaining it within public control is of the utmost importance, not only to my party but to all parties in the House and to the general public. From my party's perspective, this builds on our commitment as a party to improve water services. We, obviously, supported the €6 billion in funding that has been committed to in the national development plan for water services.

It is important to note as well and to pay tribute to all those who are delivering water services that the lowest level of vulnerable water supply connections was recorded in February of this year. That is some achievement. All those involved in the delivery of water services are to be commended, particularly if one considers we are coming out of two years of a pandemic.

Separating Irish Water from Ervia is in the best strategic interests of both water services and gas networks businesses. It should allow for full transparency and accountability of our water services. I welcome the indication from the Minister of State that the separation will be achieved early next year and that the Government is working to achieve that. I hope the House can facilitate the passing of the legislation. I also acknowledge the strong co-operation that was provided in the Joint Committee on Housing, Local Government and Heritage for the scrutiny of the legislation and the work that was done by that committee, by the Chair and all of the secretariat - it provides an invaluable service to us.

Uisce Éireann will stand accountable and will take full responsibility for the delivery of public water services. I particularly like the fact that we will have one accountable public utility and Uisce Éireann is a very appropriate name for it. Uisce Éireann, in turn, will be accountable to the Oireachtas. It will be accountable to the Committee of Public Accounts. The Oireachtas will ensure, through the Committee of Public Accounts, that Uisce Éireann delivers customer-centred and user-focused services and will also ensure that there is value for money for taxpayers. As such, Uisce Éireann will be subject to parliamentary scrutiny and it will have to present its accounts to the Minister, who will lay them before both Houses of the Oireachtas. This gives both Houses of the Oireachtas the opportunity to scrutinise the performance of Uisce Éireann and to hold it to account. These are welcome developments, and absolutely appropriate for a public utility.

Government will appoint, through the Minister, the board and directors. That will be done through the Minister for Housing, Local Government and Heritage but there will also be consent required from the Minister for Public Expenditure and Reform. The Minister will have the ability to remove a director if that director is either incapable due to ill-health or engages in behaviour which is inappropriate for a director of such an important public utility.

The directors will have a limit of two years. That is a good idea. It promotes fresh ideas. It promotes enthusiasm and energy around the role of being a director.

Given that there will be a transfer of staff, it is important that we do not lose that institutional experience and knowledge. When I talk about staff, I want to acknowledge, from the city of Dublin, Dublin City Council's staff. I was a city councillor when Irish Water was set up. I must admit in this House that I opposed it vehemently. I had very serious questions about the transfer of the assets from the local authority. There have been issues around the delivery and quality of waters services. Places come to mind for me, such as Cabra, and the water pressure within my own constituency but I would not let today's debate go by without giving credit to all of the staff, not only of my own local authority in Dublin but of all local authorities who have provided excellent service down through the decades.

An important aspect of the Bill that others may not have noticed is that the Bill is quite progressive in that it requires gender parity in terms of the make-up of the organisation and the board. It is welcome that the Minister under this legislation, in so far as is practicable, will endeavour to ensure that among the directors of Uisce Éireann there is an equitable balance between men and women. That is a welcome development. It is one that I would like to see replicated in any future public bodies being established by either this Government or other Governments.

This Bill sets out a path of accountability and transparency for Uisce Éireann. Critically, it keeps it in public ownership. The Minister of State, Deputy Noonan, mentioned in his speech that the Minister for Housing, Local Government and Heritage intends bringing a memorandum to Government with recommendations around a referendum on water and also a referendum on the right to housing. The Minister of State has been in the House when we debated the referendum on housing and it is a matter that I and my party are committed to. I am delighted to hear that the Minister feels he will be in a position to bring memorandums to Government on both of these issues before the end of this year. That is welcome. We, at least my party, look forward to the Government approving those memorandums, moving forward and bringing these two important questions to the people of Ireland.

Photo of John CumminsJohn Cummins (Fine Gael)
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I thank the Minister of State for bringing this important legislation before us. It is relatively straightforward in what it is seeking to achieve.It seeks to separate Irish Water from Ervia and to establish it as its own stand-alone utility, Uisce Éireann. Despite it being a relatively straight-forward piece of legislation it is obviously lengthy given the amount of transfers involved in the process. In regard to the pre-legislative scrutiny which was carried out by the Oireachtas joint committee, I thank the members for taking on board the suggestions we made, mainly that the CEO would be appointed through the public appointments process, that the new organisation would be subject to the Comptroller and Auditor General and would come before Oireachtas committees to account for itself on which in fairness it has to be said Irish Water has been forthcoming. It has been before our Oireachtas joint committee on a number of occasions and has been more than willing to engage with us on issues that have arisen and also in terms of its ambitious infrastructure plans such as leakage reduction programmes and so on. It is important to state that. It has also engaged personally with me and my colleagues also. I thank Irish Water for its engagement with Members of the Oireachtas on issues. I have always found it to be proactive in trying to resolve issues as they have arisen.

I will mention a couple of points. Notwithstanding that the Minister of State said that the Bill does not deal with the transformation process and the movement of local authority services to Irish Water it would be remiss of us not to highlight some concerns in that area. I appreciate that is an ongoing process that Irish Water is engaging in at the moment in conjunction with the local authorities. My concerns relate to the services that might perhaps fall between two stools for which Irish Water does not necessarily want to take responsibility and the local authorities have always managed. I am thinking of the small group schemes and services that are to the rear of properties in our inner city centre areas. Water is unlike other services such as gas and electricity where services are brought to the front door. In many cases because of historical legacy issues many of the services for water are to the rear of properties. It states that the responsibility for this lies with the homeowner but I have a fundamental issue with that because invariably the person who ends up with the issue is not the person who has contributed to it. There might be six or eight properties on a line with a manhole going into the rear of one property and ultimately the cost of fixing it falls on that individual. Since my time on a local authority in 2009 up to the present local authorities have always used their discretion in assisting such homeowners to resolve issues as they have arisen. I want that flexibility to continue when all services are transferred over to Irish Water. It could become a big issue where the black and white says it is the responsibility of the homeowner but that no flexibility has been built in because Irish Water is under the remit of the Commission for Regulation of Utilities, CRU, and there are very much black and white rules. We have to maintain that flexibility which has always been shown by local authorities.

On another point in regard to the transformation process, in sitting on the Joint Committee on Housing, Local Government and Heritage, obviously all of our focus is on trying to increase the availability of properties for individuals and families throughout the country. However there is often a lag in regard to the services that need to be provided by Irish Water in trying to catch up with zoned land and land that has been brought forward by developers. There has been an excellent programme rolled out by Irish Water in terms of the self-lay programme where Irish Water has essentially certified developers, while overseeing the work that they are carrying out, to be able to lay many of the services themselves. That oversight role is strictly adhered to. Initially an Irish Water contractor was required to carry out all the work. That was adding significant costs. We all know that when we add significant cost onto the build it ends up going on to the purchaser. There are a number of such schemes where Irish Water has taken on board the feedback from the sector and from politicians. I certainly hope that will continue into the future.

I thank the Minister of State for bringing forward this legislation. I acknowledge all the work that has been done by local authority workers throughout the country in regard to water services over the past decades. The new company will provide many opportunities for staff in terms of progression, apprenticeships and graduate programmes. It is a welcome move but it is obviously important that the company remains in public ownership and that is committed to in the programme for Government. I commend the Minister of State on bringing forward the legislation.

Photo of Fintan WarfieldFintan Warfield (Sinn Fein)
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As we debate this Bill today I am particularly mindful of both the environmental and cost-of-living crises that we currently face. The ever-increasing impact of global warming has seen water levels in rivers throughout the country fluctuate. We are now faced with a future where vulnerability to drought and water poverty are real and imminent risks for all. Furthermore the current cost-of-living crisis means the economic concerns that drove thousands to the streets in protest at Irish Water in 2013 and 2014 have only increased. It is in the context of these crises that the disproportionate impact they have on younger and lower income families and individuals that we must consider this Bill. It is therefore vital that this change to Uisce Éireann is not merely a rebranding of Irish Water but a recognition of the principle that water should be free at the point of access and that any utility must be publicly owned, publicly controlled and accountable not just to the Minister and the Government but to this House and to the Oireachtas committee.

The location of the water utility in Ervia has long been contentious. The view at the time was that as it was the most commercialised of the ten State companies it would be the ideal place to frame the development of the emerging water utility in a way that would make it most conducive to privatisation. However the separation of the water utility is therefore an important step in reforming the utility. Further steps are required if we are to ensure the development of a publicly-owned, publicly-controlled and accountable utility that will meet the needs of all.

If the Government intends to enshrine ownership, management and investment of our water system in public hands then it must hold a referendum as soon as possible. As my colleague, Deputy Ó Broin has already stated if the Government proposes such a referendum and works with us either on the wording proposed by Deputy Joan Collins and endorsed by a majority in the Dáil as far back as 2016 or indeed on an improved wording we will happily campaign alongside the Government on that.

If the Government is to ensure accountability it is vital that members of the board are appointed through the Public Appointments Service. While it has been the practice of the current Minister to use the Public Appointments Service for most board appointments to date, indeed foremost board appointments to date, it is not explicitly required in the Bill. The difficulty of course is that if it is not included in the proposed legislation then it is not legally required. As such either the Minister or a future Minister could choose not to use the Public Appointments Service.Sinn Féin remains as committed today to the core principles of the Right to Water movement as we were in 2013 to 2014. We believe that the fact the movement won the core elements of the campaign was important. Due to the work of those in that movement we do not have domestic water meter charges. Sinn Féin firmly believes that water should be free at the point of access and funded through general taxation and low-interest Government borrowing. We are also convinced of the need to ensure that any utilities be publicly owned, publicly controlled and accountable.

We can have significant improvement in services as long as those principles are enshrined along with a referendum, a non-commercial semi-State company with the full protection for all current and future workers and a continued footprint of water services personnel in every local authority. We can then have a significant improvement in services. I welcome the Minister of State and thank him for coming to the House.

Photo of Rebecca MoynihanRebecca Moynihan (Labour)
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It is very good to see something of an agreement among both Opposition and Government sides in this House in that water is a public good that should be accessible and State run. I acknowledge that in the very early stages of the setting up of Irish Water, the Green Party was among the first parties to call for a referendum on public ownership of Irish Water. As far back as July 2006, my former colleague, Willie Penrose, published a Bill to amend the Constitution to ensure the public ownership of public utilities such as Irish Water. It is heartening to hear the three parties in the Government say they are committed to that referendum.

Unfortunately, seven years on, we are still no closer to seeing the referendum. We need to move on it in a short timeframe and certainly before the end of this Government. There is consistency and agreement across the House from all sides and parties and, yet, we never know what will come down the line with regard to setting up Uisce Éireann. It is imperative that if we have a referendum on housing or a number of other referendums, a public utility is incorporated.

We are very happy to see that a member of the Irish Congress of Trade Unions is mandated to sit on the board of Uisce Éireann because an important part of State ownership and State-run utilities is that workers have a right to and a say in the management of the organisation as well as simply being a worker. Some 3,200 local authority workers are subject to service level agreements with Irish Water, as well as additional staff employed directly under Irish Water and its parent company. We wish to see all of those staff protected under Uisce Éireann and in the transition phase.

We are happy to see there will be no compulsory transfer of staff from local authorities to Irish Water or no compulsory redundancies. My colleague, Deputy Nash, has very much pushed for this. Local authority workers will have the option of transferring to Irish Water on a voluntary basis. Existing pay is protected and there is the chance to earn more through individual or collective bargaining rights. We welcome the legislation but we ask that the Minister of State work with the Opposition and others to try to prepare a referendum in order that Uisce Éireann stays in State ownership. One of people's big concerns about the water companies is their potential to be privatised. At the time of the considerable debate over Irish Water, to the fore in people's minds was that our water system would be privatised, as has happened in other European countries.

It is welcome that we have moved over to a single water utility and eliminated some of the miscommunications and inefficiencies. There is a lot more to be done by Irish Water but a single utility service in this country makes sense. We ask that it be retained in public ownership with a constitutional protection and guarantee.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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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.

Question put and agreed to.

Photo of Ned O'SullivanNed O'Sullivan (Fianna Fail)
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When is it proposed to take Committee Stage?

Photo of John CumminsJohn Cummins (Fine Gael)
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Next Tuesday.

Photo of Ned O'SullivanNed O'Sullivan (Fianna Fail)
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Is that agreed? Agreed.

Committee Stage ordered for Tuesday, 22 November 2022.

Cuireadh an Seanad ar fionraí ag 3.14 p.m. agus cuireadh tús leis arís ag 4.09 p.m.

Sitting suspended at 3.14 p.m. and resumed at 4.09 p.m.