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The Minister of State at the Department of the Environment, Community and Local Government, Fergus O’Dowd T.D., has today (2 December, 2013) welcomed publication of the Water Services (No. 2) Bill today, which provides for the transfer of water services functions from the local authorities to Irish Water. Welcoming its publication, Minister O’Dowd said: “This Bill paves the way for fundamental reform of water services delivery in this country, services that currently cost over €1billion a year. A national, public utility providing water services and infrastructure, underpinned by a sustainable funding model, will help to ensure greater security of quality water supply for Irish people and the economy. Independent, economic regulation of Irish Water’s services, and charges, by the Commission for Energy Regulation (CER), will ensure customers are protected.” Irish Water is due to take over responsibility for the delivery of water services on January 1st 2014.

Commenting on the Government’s proposed reforms, Minister O’Dowd stated: “In producing this Bill, the Government has charted a new way for water and wastewater service delivery. Through increased investment, Irish Water will be able to deliver the level of infrastructure needed to meet demographic, economic and environmental requirements in the years and decades ahead. This will help guarantee security of supply in the future for communities and businesses. It will also position Ireland’s economy to attract water-intensive industries such as ICT and pharma-chem as the world faces a 40% water deficit by 2030.”

Minister O’Dowd added: “The provision for service level agreements between local authorities and Irish Water, contained in this Bill, will see the continued involvement of local authorities in service delivery at the local level for the next 12 years. This will see the local expertise in assets management and operations combined with the considerable network and utility management experience available to Irish Water. I am very confident this will prove to be a positive collaborative arrangement.”

On the provision for independent, economic regulation of the water sector, the Minister said: “Irish Water will be regulated from an economic perspective by the CER. Irish Water will be required to prepare water charges plans setting out details of its tariffs and related matters included payment methods and these plans, including the tariffs, will be subject to the approval of the CER. In discharging this role the CER will play an important role in controlling the costs of Irish Water and protecting the interests of customers more generally by approving codes of practice to be adopted by Irish Water. Work is being progressed on the approach to the proposed free allowance and affordability measures which will be introduced by Government to ameliorate the impact of water charges on domestic customers.”

Minister O’Dowd also highlighted the Bill’s provisions regarding Irish Water’s plans’ coherence with national and regional policies. “Policy coherence between water and other sectors is fundamental to promoting balanced economic growth. Irish Water’s strategic plans will have to be consistent with the National Spatial Strategy, the regional planning guidelines and the Water Framework Directive’s river basin management plans. There will also be coordination between Irish Water’s capital investment plans, local and county development plans, and will be produced in consultation with the EPA and regional and planning authorities. This will help ensure coherence between water services and infrastructural planning and other socio-economic policies, driven by a long-term sustainable approach.”

Ends

Among the main provisions of the Water Services (Amendment) No. 2 Bill 2013 are;

* the transfer of water services functions from local authorities to Irish Water including water treatment and supply, provision of waste water collection and treatment services, construction and maintenance of water and waste water facilities and water and waste water quality monitoring;

* the transfer of local authorities' water services assets, property and liabilities to Irish Water;

* service level agreements (SLAs) between Irish Water and the local authorities, through which local authorities may perform water services functions on behalf of Irish Water (the first agreements will be for a period of 12 years);

* provision for the transfer of local authority staff to Irish Water, where agreed by both organisations, following the conclusion of an SLA;

* the power for Irish Water to charge domestic customers for water, based on usage, with tariffs to be approved by the CER;

* the preparation of 25-year strategic plans by Irish Water, covering the utility's objectives regarding drinking water quality; existing and projected demand for water services; prevention or abatement of risks to human health or the environment; and water conservation;

* the development by Irish Water of capital investment plans to set out the proposed investment water services infrastructure;

* independent, economic regulation of Irish Water by the CER, with the Commission charged with protecting Irish Water's customers.

* codes of practice relating to Irish Water's performance standards, customer billing and payment, customer communication with Irish Water and customer complaints, with the CER given powers to direct Irish Water to comply with these codes;

* cooperation between the CER and the EPA, to ensure as much consistency as possible between decisions or measures taken by either agency in relation to water services.

* Rural water functions relating to private waste water treatment systems and group water schemes will remain with local authorities.

Water sector reform milestones already reached

* Enactment in March 2013 of legislation providing for the establishment of Irish Water, domestic water metering and assigning certain economic regulatory powers to the CER

* Recruitment of senior management and staff to Irish Water.

* Over 1 million household connections surveyed so far in the domestic water connections survey.

* Commencement of the Irish Water metering programme: over 53,000 households already metered, over 600 jobs created, with approximately 60% of these jobs obtained by people either from the Live Register, local SMEs or graduates/apprentices. This proportion exceeds the Government's target of 25%, set in February 2013.

* Agreement on the basis for a long term partnership between Irish Water and local authorities, in which councils will provide water services on behalf of Irish Water through service level agreements.

Water sector reform milestones ahead:

* End of 2013: Water Services (No.2) Bill to be enacted.

* January 2014: Irish Water, the new water services authority, to become fully operational.

* December 2016: the Irish Water Metering Programme completed.

Water charges

It has been agreed that domestic water charges will apply in the last quarter of 2014, with the first bills being issued in January 2015.