PAUL CULLEN
PROPOSALS FOR establishing a State-owned water company, Irish Water, are to be considered by a Cabinet sub-committee today.
A consultants’ report is believed to recommend creating a new company to manage water resources, rather than allocating the work to Bord na Móna, Bord Gáis or the National Roads Authority, which are interested in the business.
Minister for the Environment Phil Hogan confirmed yesterday that consultant PricewaterhouseCoopers (PwC) had submitted the first part of its assessment to his department, but his spokeswoman refused to confirm or deny a claim that the report backs a new company to manage the task of introducing water metering nationally.
Senator John Whelan (Labour), who is from the midlands and a strong supporter of Bord na Móna’s bid for the work, said he had been informed that the report favoured the creation of a new company over other options.
He said he was astonished at this finding: “The last thing this country needs is another highly paid chief executive running another quango, with their hand held by consultants indefinitely.”
Bord na Móna represented the “best fit” for the work, he claimed, while a new company would represent “a shot in the dark”.
With the issue due to be discussed by a Cabinet infrastructure committee, which includes the Taoiseach, Tánaiste and Mr Hogan, a decision on implementation is expected before year-end.
Speaking after addressing a seminar on water management yesterday, Mr Hogan said he believed there was growing public understanding that water charges were necessary. “I’m starting the consultation process with the Cabinet tomorrow in relation to the structures, function and operational matters relating to the delivery of this particular . . . programme.”
The last two severe winters and the experience of cryptosporidium in Galway had focused minds on the need to “nurture” the resource. “I think more and more people realise that good quality and good quantities of water are essential for everyday life and for a good quality of life. If people have an objection to that then we are in a serious place as a country.”
Earlier he told the seminar reform of the water services sector was one of the most important challenges facing the Government.
He said the programme for government had proposed the establishment of a new State-owned water company, Irish Water. The EU-IMF programme committed Ireland to undertaking an independent assessment of the establishment of a water utility, and PwC was carrying out this assessment.
“I can confirm that PwC have now submitted the first phase of their assessment to my department and I will be bringing proposals to Government very shortly in relation to this matter.”
He said the current funding model for water services included three main revenue sources: the exchequer; local authorities’ own resources; and income from charging the non-domestic sector. “New approaches are required to ensure a quality water service,” he said.
Mr Hogan added that as the exchequer did not have the capacity to fund capital programmes at existing levels, other ways of funding programmes through charges or access to the financial markets must therefore be considered.