Written answers

Thursday, 26 March 2015

Department of Environment, Community and Local Government

Constitutional Amendments

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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244. To ask the Minister for Environment, Community and Local Government the reasons the Government could not proceed with a referendum to insert a clause into the Constitution to prohibit the privatisation of water at any point in the future; and if he will make a statement on the matter. [12465/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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Article 10(2) of the Constitution states that all land and all mines, minerals and waters which belonged to Saorstát Éireann immediately before the coming into operation of the Constitution belong to the State to the same extent as they then belonged to Saorstát Éireann.

With specific regard to Irish Water, the Water Services Act 2013 provides for the establishment of Irish Water as a subsidiary of Bord Gáis Éireann (now Ervia), conforming to the conditions contained in the Act and registered under the Companies Acts. Section 5 of the Act provides that one share in Irish Water shall be issued to Bord Gáís Éireann (now Ervia) with the remaining shares allocated equally between the Minister for the Environment, Community and Local Government and the Minister for Finance. Accordingly, Irish Water is in full State ownership. Subsection 5(6) of the Act, as amended by Section 46 of the Water Services (No. 2) Act 2013, prohibits each of the three shareholders from disposing of their shareholding in Irish Water and thus places a statutory prohibition on the privatisation of Irish Water.

There are no plans to amend the Constitution with regard to Irish Water. The Water Services Act 2014 includes a provision whereby any future proposal for legislation that would involve a change in the State ownership of Irish Water must be put to a plebiscite of the people. This ensures that any proposed privatisation by a future Government could not proceed without the support of the Irish people.

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