Finian McGrath (Dublin North Central, Independent)
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990. To ask the Minister for Environment, Community and Local Government his views on returning the administration of Irish Water to local authorities; and if he will make a statement on the matter. [41074/14]

Alan Kelly (Tipperary North, Labour)
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The Government embarked on a programme of ambitious reform in this sector, as the traditional water services system was in need of fundamental change. Our public water infrastructure is deficient and inadequate as a consequence of decades of under-investment and the lack of a truly, national approach that could maximise the impact of investment. An Independent Assessment published in 2012 reviewed the strengths and weaknesses of the delivery of water services through 34 local authorities, and concluded that there was a fragmentation of leadership and co-ordination, difficulty in attaining economies of scale, difficulty in delivering projects of national importance and an aging and poor quality network. The report concluded that the best way of ensuring increasing efficiency and effectiveness of operations and capital investment and accessing new finances for the water sector, was to establish Irish Water as a public utility.

This was implemented through the Water Services Act 2013, which provided for the establishment of Irish Water, and the Water Services (No. 2) Act 2013 which provided for the transfer of responsibility for water services provision from the local authorities to Irish Water. The transfer of responsibility took effect on 1 January 2014.

The Independent Assessment also pointed to the particular strengths of the local authority system in relation to locally based teams, and this positive aspect is preserved through the Service Level Agreements (SLAs) put in place between Irish Water and local authorities which garner the knowledge and expertise of local authority staff combined with the network and utility management experience available to Irish Water, to provide for a more consistent and efficient service for customers.

Since its establishment, Irish Water has implemented key systems to provide for a more strategic approach to managing water services assets and underpinning priority investment. Capital investment in core infrastructure over the period ahead will be substantially more than in 2013 and operational savings of some €12 million have already been achieved in 2014 through a national approach to procurement.

Irish Water, like other utilities, will have the capacity to fund investment without adding to the Government Debt. It would not be possible to fund the same level of investment if the responsibility for water services had remained with local authorities. The independent regulation of the sector, by the Commission for Energy Regulation, will ensure that operational efficiency is achieved across the sector, in Irish Water’s central services and in the Service Level Agreements. This will take account of international benchmarks and will be focused on ensuring that customers are only charged for an efficient service.