Yesterday, the former Minister, Deputy Fergus O'Dowd, expressed the view that Irish Water has not communicated its message properly. That was followed later in the day by the Minister of State, Deputy Dara Murphy, stating that Irish Water could have done better to get its message across. Given the amount of our money that has been spent by Irish Water on public relations, that should be surprising, but what it fails to acknowledge is that it is not the delivery of the message that is at the heart of the problem. It is the substance of the message that people have a problem with. No one, regardless of how good a communicator they are, can convince families with adult children living at home, some of whom are full-time students, those on jobseeker's payments or the more than 30% of people who cannot pay their utility bills that they will have the ability to pay another bill. They are already struggling, and they know that daily struggle better than anyone. Who is selling the message? It appears there is a virtual golden circle of personnel who are linked from one controversial project to the next. It strikes many of us as odd that the former Dublin city manager and now head of Irish Water, who had a close relationship with RPS consultants during the Poolbeg incinerator fiasco, should have two directors of RPS-----

Sorry, you cannot go into that.

-----as his closest allies in Irish Water in the form of the head of asset management and the head of communications.

Sorry, you cannot make allegations of that nature in the House.

They are not allegations. They are facts.

No. You are not going to do it.

They are not allegations. They are facts.

They are not facts. It is not in accordance with Standing Orders.

It is also odd that the former Minister, Phil Hogan's Department turned down Siemens' offer to foot the bill for water meter installation, choosing instead to opt for the far more expensive option offered by Siteserv, a company operated by the person who had the great fortune to obtain the second mobile licence in this country, Denis O'Brien.

Given the striking similarity of the team playing the game, how on earth does the Taoiseach expect people to trust Irish Water? Does he accept that the very large cohort of the population who are stretched to breaking point will not be able to pay another utility bill when the ability to pay is not at the centre of this issue? Yesterday, the Taoiseach spoke about teething problems. Has he considered that Irish Water is the teething problem?

I accept from Deputy Murphy that any charge imposed on people is always difficult to deal with and difficult to accept. That is why, under the structure of Irish Water, the policy directions were given by Government to the regulator and are being implemented by the regulator. Appropriate allowances for the different categories of people that I have outlined on a number of occasions will apply.

In respect of the Irish Water entity, Deputy Murphy will be aware that this will become Ervia, which is an amalgamation of Irish Water and Bord Gáis, where a completely independent analysis of the competencies and the specialties required to run a major entity like this will apply. Those discussions will take place about the creation of Ervia very shortly.

When was that announced?

This is a massive organisation which has a fundamental and important part to play in the economy for the future.

Without mentioning some of the issues the Deputy referred to it is a question of putting in place an entity that can borrow off the Government balance sheet to invest in infrastructure and provide quality water for people and for business and deal with the leaks, the treatment works and boil water notices and so on. Yes, of course, it is always difficult when a new charge is imposed. That is accepted.

What if someone cannot pay?

There is a need for a contribution from people across the country with a view to dealing with this problem which has been neglected for years.

The Taoiseach said Irish Water is a huge organisation. That is what frightens people. It what they feel they are paying for. The one group that the citizens did not expect to create a super quango was Fine Gael, when one considers what was said in the run up to the last general election. This does not address the issue of ability to pay. If one earns €188 a week on jobseeker’s payment it is a challenge to exist. If one is trying to keep a few young adults in college and has bills to pay it is a challenge. The Taoiseach repeatedly mentions the figure of €800 million but the take is projected to be €370 million next year. That reinforces the point people make that the bills will be substantially higher than is predicted. They are very fearful. It is the only utility people will pay for and not consume because they will be responsible for a leak in a pipe between the meter and the house, except for the first leak. That frightens them. They do not know what they are likely to face.

The former Minister of State, Deputy O’Dowd said he went to the Taoiseach because he was concerned about ability to pay. What did the Taoiseach say to him? Did he give him a hearing? Did the Government consider the ability to pay in respect of those categories?

The Minister of State, Deputy Kevin Humphreys, will be gone by teatime.

There are several things the Deputy needs to bear in mind. The water regulator has determined that the average bill will be less than €240 per year, has confirmed that 80% of all bills will be less than €24 per month, given the allowances already laid out, and ordered that there be a reduction in the cost base of Irish Water of €170 million by 2016, that is, a reduction of 8% and includes a substantial element of pay. The household allowance will cover 40% of the water supplied to a person who lives alone. That person will pay approximately 50 cent per day for water, which is approximately €138 per year. Over 400,000 recipients of the household benefit package will get an extra €100 a year for that. In many cases of special medical requirements, where a lot of water must be used for particular complaints and circumstances, that will be capped.

What complaints?

The regulator sets the conditions.

The Government sets the parameters for the regulator.

What if a person cannot pay?

He is determined that the average bill will be less than €240 and that 80% of bills will be less than €24 per month.