Irish Water establishment and handling
Catherine Murphy criticised the rushed creation of Irish Water, the transfer of €11 billion in local-authority assets and the Government’s handling of public opposition. The Taoiseach defended establishing a national public utility for infrastructure investment, citing regulatory safeguards and capped bills.
On 19 December last year, the Taoiseach rammed through the legislation to create Irish Water. The Opposition refused to take part in what was a charade and we walked out in protest. One of the microphones was left on that day and it picked up a Government Deputy saying, "Let them go", with an expletive in the middle. This shows the kind of contempt this majority Government has for those with opposing views. The Government needed to ram through the legislation to proceed with the transfer of €11 billion in assets from county and city councils to Irish Water by 1 January. There are two things Irish people hate, namely, being bullied and being taken for fools. The Government and Irish Water have managed to do both.
The process of having to hand over one's PPS number makes people feel bullied. People are infuriated as they will be fined if they do not hand it over. They feel they have been taken for fools. There have been too many examples of this. The partnering with Bord Gáis was supposed to produce significant savings, but there were actually massive start-up costs. It also brought about a bonus culture. People are sick and tired of listening to the propaganda about this. The controversial awarding of the metering contract and almost all other facets of Irish Water do not sit well with people. The approach has alienated those who believe conservation, more so than fixing leaky pipes, is important, including myself. It has alienated people who have data protection concerns and those who are pretty much terrified about the uncertainty and extent of the growing number of charges. The approach has also alienated people who fear the Government and Irish Water are making it up as they go along.
The Government is hell-bent on giving the impression that the entire failure is a failure in communications and of the board of Irish Water when in fact it is a far more substantial one. It represents a total loss of trust in the Government. We are now at the blame game. What blame does the Government place on itself for the loss of trust associated with this omnishambles that is Irish Water? What possible difference can the extension of a month make? Does the Taoiseach believe the events of 19 December 2013 will ultimately determine the results of the next general election?
Comment on this
The answer to the Deputy's last question is that the people will decide the outcome of the next general election and make their choices, whenever it is called. The intention is that it shall be in the spring of 2016. That is always the way it should be. People are the masters and those whom they elect here are merely their servants.
With regard to Irish Water, I dealt with this matter at length yesterday. It is well known why it is necessary to set up Irish Water. It is to have a public entity enshrined in law that can borrow off the balance sheet for proper investment in infrastructure and treatment plants for high-quality water for drinking, business and industry. I dealt with the question of the unitary board involving Ervia, formerly Bord Gáis Éireann, and Irish Water, which board will be established at the end of November. The board has a particular function. I do not want to interfere in any way with the regulator, who made some comments yesterday at a meeting of the Oireachtas committee. We will follow through on whatever the regulator decides in light of his independent responsibility.
It is more than a matter of communications. Irish Water is one of the largest institutions to be created, and it is necessary that it be so. There are challenges with the timescale that has been set out. Most of the complaints I have received are about the mechanics of how Irish Water deals with telephone calls, queries, e-mails, requirements to fix leaks and questions about water supply and treatment-work supplies. The issues on which the Government reflected yesterday are being discussed by Irish Water and the Department. The regulator has independent responsibilities. I hope clarity and understanding will emerge from the discussions in order that people can have confidence in Irish Water and know what they will get for the contributions they make in terms of the improvement of plants and infrastructure, the ending of boil water notices and the creation of a system of water provision that is of the highest integrity and standard. This will be necessary for decades. It has never been dealt with and I know it is challenging and not easy. The system needs to be fair and the charges need to be affordable for everyone. I hope that over the next period we can ensure clarity and confidence for everyone in order that they will know the contribution they will make will be for the important purposes of investment, raising standards and providing water of high quality for domestic, business and industrial use for many decades to come.
It is not easy to get an institution such as this running as efficiently as one would like. Clearly, there have been and are challenges and I hope we can deal with those.
Comment on this
I do not know to whom the Taoiseach is listening if he thinks that this is merely a communications issue or teething problems with setting up a utility. It is far more fundamental than that. The way it has been handled has been a disgrace and has caused considerable upset. The 100,000 people on the street were not complaining about their telephone calls not being answered.
The impression being given is that we are starting from scratch. The example given was that it is on a par with setting up the electrification of the country when, in fact, as I stated, €11 billion of assets, many of which are first-world assets that have been invested in over decades, were handed over to Irish Water.
This is far more important than a communications issue. It is a loss of trust in how the Government has handled this issue, from ramming the legislation through to adding Irish Water to the list of organisations that can require persons to hand over their PPS numbers so the Government could circumvent data protection rules, which is what the Data Protection Commissioner states.
I will repeat my question. Where does the Taoiseach place himself in this blame game, which is now focused on the board of Irish Water but which, in fact, points to a political failure?
Comment on this
I place myself, obviously, as Head of Government. The Government made the decision to set up Irish Water and it was the correct decision to make. The Government also made the decision to not have every local authority involved, with a different standard of provision of water and the difficulties that they all encountered. That is the correct decision. The regime that is in place at present with the regulator means, for instance, that bills are capped at €278 for a couple with two children, but also that if the bill is less than that there is an incentive for the consumer to pay that lesser bill. The regulator will make his comments about that in due course.
As I stated yesterday, Irish Water has not done itself justice in pointing out what it is doing in terms of its capital programme of €1.2 billion to deal with 126 treatment works that are not up to standard across many other areas of the country. This is a public entity. Fears that this will be privatised or sold are wrong, unfounded and without base. It is the law. This is the provision of a public entity to invest in infrastructure so that consumers can have high standards of production and good quality water monitored by the regulator, who has already stated that he wants a reduction in its cost base by 8% by the end of 2016, including a substantial amount in respect of pay and salaries.
This is a case where there are challenges still ahead and we hope to deal with those clearly so that consumers can have confidence that this is a necessary facility and their contribution will go for what it is intended for many decades to come, including investment in infrastructure, the production of high-quality water, treatment works that stand up to scrutiny, and a service to consumers that is not like the service provided in this city at present, which can go wrong and is constantly on a knife-edge. I hope we can deal with all of those in the short period ahead.