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Dáil
‹ Leaders' Questions

Irish Water classification and funding

Summary

Deputy Fleming questioned when Irish Water will be assessed by the CSO and EUROSTAT as a commercially viable semi-State company, while the Tánaiste defended the bodies’ independence and ongoing work.

Seán Fleming Deputy Sean Fleming Fianna Fáil

There is a long way to go before we have a decision as to whether or not Irish Water will be classified as an independent, commercially viable semi-State company. The raison d'être for the establishment of Irish Water was that it would function as a commercial semi-State company along the lines of ESB and, in that way, be taken off the Government's balance sheet. EUROSTAT has not yet made a decision on this issue and the Central Statistics Office has not yet completed its consideration of the matter before forwarding that consideration to EUROSTAT.

It has emerged in recent weeks that €399 million from the motor taxation account is being given as a subvention to Irish Water this year. Moreover, the Department has confirmed this will continue year on year into the medium term. In addition, taxpayers are being asked to pick up the rates bill for Irish Water of €59 million, another direct subvention and possibly a state aid issue. On top of that, the cost of the public private partnership projects involving wastewater treatment plants that have not yet been transferred to Irish Water because of delays in the Department cost taxpayers €47 million last year and will cost them at least the same again this year. All of this amounts to an annual subvention of more than €600 million to Irish Water this and every year. These issues must all be classified.

The timescale to pass the EUROSTAT test was this month after which, on the assumption that Irish Water would pass the test of being an independent, stand-alone, commercial semi-State body, home owners were to begin receiving bills in April. In view of the confirmation I received from the Taoiseach in writing this week that it will be at least June before any such decision is made, will the Government agree to defer the issuing of water charges bills until there is clarity and certainty as to whether Irish Water is adjudged an arm of government or an independent, semi-State company? Assurances from the Tánaiste that she is confident the company will pass the test are of no use. EUROSTAT is the only body that can make that decision and the Government cannot presume to know more than EUROSTAT does before the latter has even examined the files. Until such time as EUROSTAT makes its decision, will the Government ensure people do not receive water bills from an entity whose right to exist is not yet determined?

Comment on this

As an experienced Member of the Dáil, Deputy Fleming will know that on a whole range of issues, Ireland supplies information via the Central Statistics Office, which is absolutely independent, to EUROSTAT, which is also absolutely assured of its independence under European regulations. Some years ago, when Greece got into some difficulty in regard to budgetary information and so on, the fault was deemed to lie, to a degree, in the absence of an absolutely independent service in that country such as the CSO in Ireland and EUROSTAT on a European level.

Yesterday, as on the first Wednesday of every month, the unemployment figures, including the standard rate of unemployment, are issued. Even though I would see those figures on a weekly basis within Departments, they only become public statistics at such time as they are published, at about 11 a.m. or 11.30 a.m. on the first Wednesday of every month. When we saw yesterday a figure of 10.1% for the live register, that showed the CSO and, ultimately, EUROSTAT operating as they should, with independence. I do not know why Fianna Fáil Members seem to feel nervous about or critical of the independence of these institutions. The latter are crucial to how we function in terms of our statistics and the same applies at European level.

This does not at all change what is happening in regard to Irish Water. We have a situation where very deficient water and sewerage services were provided by 34 separate local authorities across the country. In the wake of the long debate we have had, almost everybody now agrees that the way this service was organised was not fit for purpose. It led to very significant leakages and households being placed on boil water notices. It led to a failure to provide our largest city, Dublin, and its surrounding areas with an adequate supply of water, as was the case in many other parts of the country.

When the statistics and data in respect of Irish Water are sent to the European Union, it is done via the CSO and EUROSTAT, because they are independent bodies. That is the essence of the exercise. I am not sure whether Deputy Fleming is contesting their independence. The fact that the timelines may be shorter or longer is entirely a matter for those independent bodies, not a matter for the Government. The Deputy should welcome and endorse their independence.

Comment on this
Seán Fleming Deputy Sean Fleming Fianna Fáil

Is the Tánaiste seeking to undermine the letter the Taoiseach issued to the Select Sub-committee on the Department of the Taoiseach this week, in which he said the CSO is working to finalise its report "in the next two to three weeks", after which that assessment will be provided to EUROSTAT? In other words, there is no delay on the part of EUROSTAT; the delay is with the CSO, which is under the remit of the Department of the Taoiseach. That is why I questioned the Taoiseach about it. The information has not yet gone from his Department to EUROSTAT. The Taoiseach went on to say that the CSO has been advised that a final response from EUROSTAT will be likely to take at least two months.

The Tánaiste does not need to tell me about the independence of EUROSTAT. It is an institution I admire and thank God we have it. We need somebody to assess independently what the Government is doing. The Tánaiste dodged the question I asked, so I will repeat it. In view of the fact that no decision has yet been made about the status of Irish Water, will the Government defer the issuing of water charges bills? The Tánaiste did not go there because her party took out an advertisement in newspapers before the last election with a picture of a tap covered by an "X" and promising there would be no water charges. I am trying to assist the Labour Party to implement its pre-election promises not to implement those charges.

Comment on this

If we are getting into remembering history, we all recall the sad occasion - it turned out very sad for the rest of us, in any case - when Fianna Fáil in government assured us the bank guarantee would be the cheapest little guarantee in the world and we would be in and out of it before we noticed. That has to be mentioned if we are talking historic promises. In regard to Irish Water, there is no difficulty if the CSO has to do more work or, indeed, if it requires additional resources. It is the essence of an independent organisation that, in this instance, it does the work to meet whatever are EUROSTAT's requirements.

This is important in respect of the market corporation test and the Government is quite confident that Irish Water will qualify under that test.

Comment on this
Seán Fleming Deputy Sean Fleming Fianna Fáil

Confident.

Comment on this

Why can the Government not simply wait to find out?

Comment on this

As for the decision, notwithstanding the fact that the funding for the Central Statistics Office comes via the Department of the Taoiseach, it is important that its independence be recognised publicly and acknowledged and I thank the Deputy for doing so. It is up to the CSO to set the parameters within which it carries out this very important work. I have given the example of how it does work for the Department of Social Protection on a monthly basis, but we do not see its figures until it announces them publicly. That is how it is with the CSO and EUROSTAT. The key is to address the needs of a proper functioning water service which will be at an affordable price, result in people coming off boil water notices and savings in dealing with leakages over time. On the capital and engineering programmes, one can already see savings of €70 million in the work that must be done at the Ringsend plant, for instance, on foot of the work Irish Water has commissioned consequent on taking a utility approach and looking at best practice in improving water and wastewater facilities.

Comment on this
Seán Fleming Deputy Sean Fleming Fianna Fáil

The Government will be issuing the bills.

Comment on this