Irish Water service agreements
Deputy Stephen S. Donnelly argues that Irish Water repeats the HSE’s bureaucratic failures, wastes public money and lacks adequate Dáil oversight. He questions the exclusion of the utility from freedom-of-information provisions, incomplete service-level agreements and proposed 12-year contracts, asking whether Irish businesses can compete. The Taoiseach rejects the comparison, defends investment to remedy water-system deficiencies and challenges Donnelly to explain whether he wants staff reductions.
The Government has rightly criticised Fianna Fáil on many occasions with regard to the way in which it established the HSE. In 2005 the then Fianna Fáil-led Government had an opportunity to establish an efficient and effective health service but it blew that opportunity for political gain. Instead, it created a bureaucratic monster. The current Government is now doing exactly the same thing with Irish Water. It is establishing a new monster that will waste billions of euro of taxpayers' money. In order to bankroll all of this waste, Irish Water will be obliged to overcharge the people for water for which they already pay. When Scottish Water was set up, it achieved cost savings of almost 40% in the first five years. It did so by getting rid of the inefficiencies in the system and creating a competitive market for the operation and maintenance of water infrastructure. In contrast, we have just learned that Irish Water is signing 12-year service level agreements with local authorities. In other words, it is locking in the cost relating to the existing workforce. This means that the money people will be obliged to pay in respect of their water will end up paying salaries for jobs that do not exist. It also means that there will be no room for Irish companies to bid and compete for work.
The Minister for Finance, Deputy Noonan, seems to believe that the idea of saving money in the first few years can be achieved only in a mythical country. He stated that we will see savings in approximately five or six years. Ministers are continually informing us that Irish Water exists in the commercial sector. I come from that sector and I have worked on mergers. In that context, I am in a position to state that the only mythical country around here seems to be the one in which the Government resides. If one attended a meeting relating to a multi-billion euro merger and stated that there would not be any cost savings for the following five years and that the workforce would be locked in for the following 12, one would be fired on the spot. However, that is not the case here. In this instance more than €500 million is being spent on the installation of water meters and almost €200 million is being spent on the establishment of Irish Water, the existing workforce is being signed up for 12 years, Irish companies are being blocked from tendering for work and the Government is maintaining that it will be at least five years before any savings are made.
Will the Taoiseach indicate why Irish Water is signing 12-year service level agreements? I could understand if it were signing three-year agreements in order to maintain integrity and to retain institutional knowledge but it is actually signing them for 12 years. Will the Taoiseach also indicate why Irish businesses are being locked out of the sector and why the Government is creating another monster in the form of Irish Water?
Comment on this
Irish businesses are not being locked out of the sector, nor is another monster being created. What we are doing is addressing the challenges relating to the future. Perhaps Deputy Donnelly, who spent some time working with McKinsey and Co., wants to propose that we should sack 2,000 workers. Is that what he is saying?
Comment on this
Does he want to sack those in Wicklow?
Comment on this
There is a move to get rid of anybody over 50. If that were to happen in the case of the Government, there would not be many people left in the Cabinet.
Comment on this
If the Deputy comes from the commercial side of the business sector, then I suggest he needs to get his facts right. The fact is the Irish water system is, in many cases, entirely deficient. It has suffered as a result of a lack of infrastructural investment for many years. That is why, as a result of their being 34 different local authorities, there are gross inconsistencies in standards. It is also why the population of this city was so anxious and concerned just prior to Christmas when difficulties were experienced at the Poulaphouca facility, which is near where the Deputy resides.
It is not the case that Irish Water will be a bloated monster for 12 years. Deputy Donnelly has taken the same view as that expressed by a respected economist yesterday to the effect that Irish Water will have the same staff headcount in 2025 as it does now. That will not be the case. When the Government publishes its financial and business model in respect of this matter, the Deputy will be able to argue his case. That model will demonstrate that a reduction of up to 50% will take place within ten years. If one is going to make an investment in respect of something as large as this in order to deal with the scale of the challenge our country faces, one must invest sufficiently to get it right. There is no point in investing and ending up with an inferior product. If a water main in Wicklow bursts at present, Irish Water does not have the information with regard to the location of the various connections and weaknesses in the system. That information has resided with the various local authorities for many years. It is for this reason that contracts are being signed with the local authorities in respect of the provision of the relevant services.
Deputy Donnelly should not state that people will be paid for doing nothing. If he is truthful to himself, he should state that, in order to reduce costs within three years, he proposes that in the region of 1,800 county council workers should be sacked. If that is what he is proposing, then he should say so.
Comment on this
Of course that is what the Deputy is saying.
Comment on this
I am saying it is about time that taxpayers stopped funding unnecessary waste in the Irish public system.
Comment on this
We will leave that to the Labour Party.
Comment on this
Take the money and sack the workers.
Comment on this
There has been enough waste. Are patients better off because Fianna Fáil merged everything into the HSE and retained all the inefficiencies? The answer is that they are not better off. Part of the problem in respect of this matter is that there has been no Dáil oversight. The Taoiseach informed Deputy Martin what Irish Water was not set up in secret. Let us examine the facts. It is a fact that the Minister for Public Expenditure and Reform, Deputy Howlin, explicitly precluded Irish Water from the provisions of the freedom of information legislation while it was being set up.
Comment on this
The Deputy is misleading the House.
Comment on this
It is a fact that the Minister, Deputy Hogan, refused to answer questions from any Deputy on the Irish Water set-up costs. It is a fact that the service level agreements on the website are completely devoid of any commercial detail-----
Comment on this
The Taoiseach was quoted in the Irish Examiner as saying the business model will be available in a few weeks.
Comment on this
He has done this the wrong way around. The Taoiseach committed over €1 billion of public money to be spent and he is signing multi-billion euro service level agreements before anyone has a chance to see the business model. Why is the Taoiseach signing 12-year service level agreements? I understand three-year agreements and I understand the need for consistency. Why 12 years? Will the Taoiseach instruct Irish Water to ensure that those service level agreements allow Irish businesses to bid for the work over those 12 years?
Comment on this
Before I ask the Taoiseach to reply, I want to make it quite clear that if I do not have the confidence of this House to run this Chair, I intend resigning. I will not come in here, day in, day out, and be ignored by either the Government or by the Opposition. If I call time I mean it is time and it is up to you people to answer within the time limit allocated. If you wish additional time, go to the Committee on Procedure and Privileges and get it. I am not going to spend my time getting upset here every day with people running six and seven minutes over on each question. Let this be clear.
Comment on this
I accept your ruling, Ceann Comhairle. It might be helpful to everybody if the clock at the back of the Chamber was actually switched on for these replies-----
Comment on this
We do not get the same time.
Comment on this
-----so we would know these things.
In reply to Deputy Donnelly, I expect him to go to Wicklow County Council tomorrow, call the staff who are dealing with water services in any shape or form and tell them he wants-----
Comment on this
It is not a case of the HSE all over again. In fact, I agree with Deputy Donnelly that unnecessary waste in the Irish system must be done away with. Should we not first deal with the 40% of water which is leaking away every day? Does he agree that we should deal with the problems of 18,000 households who have had to boil water for the past six months? Does he agree it is right to deal with the inadequacy of the system which has to serve 1 million households? Does he agree it is right to deal with the EPA and with our many inadequacies with regard to the European directive?
An annual review will see to it that the costs incurred are in respect of the customers and consumers of Irish Water. The Minister made clear that Irish Water is a new creation which could not be included under the Freedom of Information Act until the body was established. The Minister was clear that it was 1 January-----
Comment on this
The Deputy should go down to Wicklow tomorrow and call the staff together and say, "Donnelly is on the warpath, he wants you sacked."