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Updated 16.40
IRISH WATER, WHICH will be established to oversee the delivery of water services in Ireland will be an independent, State-owned subsidiary of Bord Gáis Eireann.
The Government decided to run Irish Water under an existing utility instead setting up a brand new State agency after a detailed analysis was carried, the Department of the Environment announced this afternoon.
Irish Water will be established as a wholly-owned public water utility and will remain in public ownership, the department said in a statement following this morning’s Cabinet meeting, adding that legislation will be put in place to restate the existing ban on the privatisation of water assets..
Irish water will be a public utility - there is absolutely no intention to privatise water services.
Minister Phil Hogan said that the Government aims to put in place a world class water and waste water infrastructure.
“Today’s decision is a very positive step forward and will allow the water reforms progress with renewed momentum,” he added.
Commenting on the weekend’s controversy over payment of the meters which will be installed in over 1.3 million homes within the next 48 months, Hogan confirmed there will be no up-front water charges for consumers.
He added that the regulator, which will be the Commission for Energy Regulation, will “ultimately decide on the funding model” and will have “the best interest of the consumer in mind”.
Similar to other utilities (gas, electricity) the consumer will pay for the delivery of water services through a variety of payment options.
The Department added that some of the figures about the cost of the metering programme have been “seriously exaggerated” by commentators.
It also confirmed that access to private property will not generally be required to install the meters or boundary boxes as they will be placed outside the curtilage of the property in the public footpath or grass verge on the roadside.
Householders will not have to give permission or do anything to facilitate boundary box installation. A short interruption to water supply (in the order 2 to 3 hours) will arise while the boundary box is being installed. Meters will be installed later.
Staff reductions not ruled out
The Government has promised reforms of the existing model which Hogan described as “not sustainable…efficient or effective”. Currently, it costs about €1.2 billion to fund the operational and capital costs of the water system.
He said Irish Water will work to reduce the above-average water leakage levels (+40 per cent) in Ireland and ensure compliance with public health and environmental standards.
Reiterating previous benefits of establishing a separate agency for water, Hogan said that 2,000 long-term construction jobs will be created by securing capital investment in the sector.
He claimed that a better system could also help attract foreign investment into Ireland.
The Minister said that Bord Gáis has the key capabilities “that can be brought to bear in the establishment of Irish Water”, citing its record in raising finance and experience in operating as a utility in a regulated environment.
It also has specific skills from its own experience of transformation, customer relations, network management, metering and utility operation that can be quickly deployed to assist in the successful establishment and operation of Irish Water, added Hogan.
There will be phased transitions of functions from local authorities to Irish Water over the next three years. The 34 local authorities who currently oversee the delivery of water services will be engaged as agents of the new agency for ” a considerable period of time” and staff members will remain in the employment of their current authority.
The Government acknowledged the ”significant change” this posed for employees and said a “detailed engagement” with staff and trade unions is required.
“Following the decision today, work will be focussed on the development of an implementation plan to provide a roadmap to addressing all the issues arising in this reform programme,” the Department of the Environment said. “We will be engaging with ICTU in advance of finalisation of this plan.”
However, it did not rule out staff reductions.
It will ultimately be a matter for Irish Water to determine the staffing and skills required for the new organisation. In the initial phase, Irish Water will work largely through service level agreements with local authorities. This will ensure a smooth transition to the new model and guard against the loss of local expertise. It will also mean that the majority of staff will remain in the direct employment of local authorities for a considerable period.
Funding
When fully functional, Irish Water intends to raise funds on financial markets in the same way as ESB and Bord Gáis. Other monies will come from domestic and non-domestic charges and Government funding.
Any revenue generated by the utility will be re-invested in infrastructure, as there is a huge requirement for upgrading and providing new infrastructure over the coming decade.
The overall water reform programme will bring real benefits to people and communities right around the country including through investment in new water and sewerage infrastructure which is vital to support jobs and businesses and ensure high levels of compliance with environmental and public health standards” said Minister of State Fergus O’Dowd who has responsibility for NewERA, Fine Gael’s economic stimulus proposals.
An implementation plan covering legal, governance and organisational issues at Irish Water will be worked out between the department, local authorities and NewERA in the coming weeks.
It is expected that Irish Water will be established under its own statute by mid-2013 and will begin taking over local authority operations on a phased basis from January 2015.
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It’s only the cost of 2 bicycle sheds or Simon and michweals salary the sad part is someone sanctioned he would continue to get the same salary when nama is finished why and more importantly who name this person and then sack him for sanctioning a salary for a job that doesn’t exist
In fairness to praise on this one. I would never have known about the government’s plans in he hadn’t highlighted it. Fair play.
@Gavin Smartr: in fairness to Pearse
@Gavin Smartr: Did the Irish Daily Mail have it first.
@Steve White: probably did Steve but I definitely wouldn’t have seen it there.
Does he do a job at all? I think we should be told!
€206 per hour for a 40 hour week. I’ll do the job for a quarter of that.
@David Connell: A lot of tax to come out of that don’t forget.
@Pat Barry: SO?? when I put €80 diesel in the car I don’t say ‘ oh, I put €44 euros in / the rest is just tax’
how many bank accounts have fffg and cronies got outside the state (diehard patriots)
Nobody needs to be paid that much money! It is absolutely obscene!
@Andrew Harrington: Why? People get paid what they are worth generally. 430k isn’t a huge salary given what achieved , and he might leave he’d easily find jobs paying more than that in the private sector.
@Andrew Harrington: reality is when you put each individual TD’S cost to scrutiny from salary to expenses to a secretary parliamentary assistants (all family members) committee chairs postage phones and other perks they each cost roughly €350,000 to €400,000 not bad for most of whom are absolutely useless
@Paul O’Mahoney: I have heard that one many years ago where the CEO of British Telecom before privatisation received a huge salary increase and when it was questioned the excuse was that he would have received a lot more in the private sector particularly in the U.S. with his experience and qualifications. The BBC went along to recruitment agencies in the U.S. and these agencies more or less laughed when they saw his C.V. and politely informed them that people with his qualifications were 2 a penny in the U.S.
@Paul O’Mahoney: lol it wasn’t hard to make money from NAMA but he did have to deal with a lot of irate developers in fairness. I agree that he could get at least this much in the private sector.
The point is does he need to be paid that much to do the job he will do in NTMA? No. So now he has the choice, stay in a still well paid job and be comfortable or go for the big bucks in private sector. The state does not need him to be paid for NAMA skills in his old job! That was my understanding anyway.
Like, why was he getting that at nama.
Which all means he’ll hold onto his salary
Watch this space, all the language is typical of political speak by FF and FG. I wouldn’t be one bit surprised if he retains that salary. It’s like the government has no power or control over these things….
No person is worth that salary from taxpayers money government rubbing irish people’s noses again there are some many people living on the breadline it’s an utter disgrace
@Pauline Cahill: Check out the cost of every TD a complete joke
@Pauline Cahill: So what if there are people on the breadline a person’s salary didn’t cause people being on the breadline. This is typical, Irish begrudgery at its finest , “rubbing people’s nose in it,” another simpleton quote. If people who don’t want to be on the breadline work harder, educate yourself, and grow up and take responsibility for yourself and your life .
the laugh is people think this is usual ..its standard procedure in the “public service”
It’s sickening.
On the other article debunked the cost of cars for the Ukrainians, the cars still cost phucking just short of 40,000 a piece!!! And paid for insurance, tax and phucking fuel!!! What the phuck, I drive a banger, 16 years old, 50 miles a day commuting, over €80 a week for phucking diesel! How the phuck can I not get this phucking deal! Some phucking state we live in. And the government can’t understand why people are protesting??!
@den: but den ya don’t understand you work hard and pay tax so why would ya be entitled to anything? It’s the poor people in this country that never worked a day in their lives and the folks that enter the country with no documents that need to be looked after, if my landlord decides to sell the house I’m living in for the past 15years decides to sell up I’m screwed even though I’ve never missed one months do ya think I’d be priorised over the low life that won’t pay 15euro a week out of their dol money for a roof over their head. In this country you’re probably better off not working but that’s me like most people I want to work even though every morning I wish I didn’t have to get out of the bed but once your ya enjoy it
@Nikki Swift: that’s not me
@Nikki Swift: too true Nikki
He looks like an overfeed ho..mo
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