Barry Cowen (Laois-Offaly, Fianna Fail)
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457. To ask the Minister for Environment, Community and Local Government the reason behind appointing Bord Gáis as the State agency in which to embed Irish Water; and if he will make a statement on the matter. [2718/14]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Government decided in December 2011, based on the recommendations in an independent assessment, to establish a public water utility company to take over the operational and capital delivery functions of local authorities in the water services area. The Government also decided that the question of whether the role of Irish Water should be assigned to an existing State Agency merited further analysis with a view to ensuring that existing resources and capabilities in the State sector were used to best effect.

This further analysis was undertaken by a team comprising my Department and NewERA, in consultation with the Department of Communications, Energy and Natural Resources. The process involved an assessment of the capacity and capabilities of a number of State agencies from amongst those identified in the independent assessment as having the potential to incorporate a new water utility. The process involved the making of detailed submissions and presentations by Bord na Móna and Bord Gáis Éireann based on identified capabilities required for the establishment and operation of Irish Water.

The outcome of the analysis was that Irish Water should be established as an independent state owned company within the Bord Gáis Group as they had key capabilities which could be brought to bear in the establishment of Irish Water. This included experience in operating as a utility in a regulated environment and a track record in raising finance, and specific skills from its own experience of transformation, customer relations, network management, metering and utility operation that could be quickly deployed to assist in the successful establishment and operation of Irish Water. The decision reflected an understanding that specific water and wastewater capabilities and expertise in local government and the Department would also be brought to bear in building the new organisation.