Terence Flanagan (Dublin North East, Independent)
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143. To ask the Minister for Communications, Energy and Natural Resources the role Bord Gáis and his Department had in the formation and spend of moneys by Irish Water; and if he will make a statement on the matter. [3431/14]

Pat Rabbitte (Dublin South West, Labour)
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The Department of Environment, Community and Local Government has the role of driving the overall water sector reform process which includes developing the policy and legislation and ensuring delivery of the Government's water sector reform implementation strategy, which was published in December 2012. The establishment of Irish Water is an integral component of this strategy and involves major organisational change, an entirely new funding structure governed by economic regulation, the introduction of domestic water charges based on usage and the roll-out of a national domestic metering programme.

The role of Bord Gáis Éireann (BGE) was key to bringing the necessary skills and competencies to the project, allowing the utility to be established within an ambitious timeline at lower cost and at least risk, by leveraging from their knowledge, systems and skills and matching this with skills within the water sector. BGE had initial responsibility for certain key deliverables under the Government water sector reform implementation strategy, pending the enactment of the Water Services Acts, which, inter alia, provided for BGE to establish Irish Water as a subsidiary company.

My Department continues to engage with officials of the Department of Environment, Community and Local Government and with BGE on matters which are relevant to the overarching corporate governance responsibility for BGE and my role as shareholder of BGE. The Water Services Acts 2013, together with Irish Water's Memorandum and Articles of Association, provide the Minister for Communications, Energy and Natural Resources with a consenting role for certain matters relating to Irish Water. In this regard I have consented to approvals granted by the Minister for Environment, Community and Local Government on key matters including Irish Water borrowings from the NPRF (National Pensions Reserve Fund) and capital expenditure on the water metering project.

My Department does not have a role in assessing the establishment costs for Irish Water, which I understand are subject to examination by the Commission for Energy Regulation as an integral element of the independent economic regulation of Irish Water. The key focus of my Department, working with the NewERA shareholder executive unit of the NTMA and the Department of Public Expenditure and Reform, has been to ensure that BGE is well positioned to play its critical role in maintaining the security of Irish energy supplies, while also facilitating delivery of important Programme for Government commitments including the sale of Bord Gáis Energy and the establishment of Irish Water.