Irish Water grants Coalition partners a reason to fall out

For the opposition, Irish Water is the gift that keeps on giving — even more so when that gift involves an internal Government row about giving €100 to people refusing to pay their charges.

Over the past 24 hours Irish Water has caused yet more havoc for the Coalition after reports that the “water conservation” grant — seen by some as little more than a bribe — would only be given to people paying their bills.

The suggestion was quickly shot down by Environment Minister Alan Kelly, Tánaiste Joan Burton, Transport Minister Paschal Donohue, and others, but the controversy has at the very least given the opposition two fresh areas in which to attack the Government in the final months before a general election.

Despite the plan being denied by senior members of the Cabinet, it is clear that Labour and a section of Fine Gael backbenchers are no longer seeing eye-to-eye on a key matter of policy.

And when, depending on who you listen to, that policy relates to either wasting taxpayers’ money on a grant given to people refusing to pay water charges or taking money away from struggling would-be voters, it is yet another no-win situation for the Coalition and an open goal for an opposition constantly waiting to pounce.

Under the current water conservation grant, anyone registered with Irish Water before the end of June is entitled to receive a €100 fee to help them conserve water.

The fund was introduced last autumn during the first of the Coalition’s multiple U-turns on Irish Water as it attempted to convince people to sign up while smoothing over Phil Hogan’s less-than-subtle approach.

Over the subsequent months, Labour and Fine Gael were at pains to stress the €100 was not a bribe but rather an incentive to use water more responsibly — an explanation that led on to the then-unmade Eurostat decision on whether Irish Water is a private firm.

After the EU group’s ruling that Irish Water must remain on the exchequer’s books, and its swipe at the grant in particular, it appears a number of Government TDs have now given up on the argument — this time with one eye on the safety of their own Dáil seats.

Fine Gael TDs Eoghan Murphy, Paul Connaughton, Brendan Griffin, and Ray Butler, along with Senator Catherine Noone, have all raised concerns and “deep unease” over people who are registered with Irish Water but not paying bills receiving the fund.

That deep unease undoubtedly relates to would-be Fine Gael voters who are more likely to pay their bills, as most members of the public would be more than happy to receive €100 for no reason, more than the wider population itself.

It is no surprise then, that on the same evening as the comments were made, media leaks suggested the grant — for which people are being told how to apply from today — will soon be limited to billpayers only, following a Fine Gael pushback.

The argument, while controversial, has a certain logic if the Government is willing to finally admit the grant is little more than a bribe to pay Irish Water bills.

However, it provoked a sharp denial from Labour ministers who insisted no changes are planned, prompting Fine Gael to follow suit.

[Saying 'no changes are planned' is not a lie because no changes are needed. Legislation already exists to connect the paying of bills as a condition of receiving the bribe – in the form of the Environment (Miscellaneous Provisions) Act 2015 (water charges section) – Fliuch]

Labour headquarters was adamant the first it knew of any proposed changes was through the media. One figure questioned “if it was a co-ordinated attempt by Fine Gael”, although its Coalition colleague rejected this, saying it is only a matter for the Department of the Environment.

Whether the latest Irish Water controversy is about nervous backbenchers speaking out of turn, a genuine dispute within the Coalition over the €100 grant, or a hidden new plan slipping out into the open, it is not good news for Government.

While Fianna Fáil and Sinn Féin were reluctant to clarify whether they would take away the money from families or be happy to give it to people refusing to pay the charges — preferring to claim the Government does not know where it stands — the problem currently lies solely with the Coalition.

But then, when it comes to Irish Water, doesn’t it always?

John Tierney is 'wrong man for job, says McGuinness

PAC Chairman John McGuinness

PAC Chairman John McGuinness

The chairman of the Public Accounts Committee, John McGuinness, has launched a blistering attack on Irish Water, saying its boss John Tierney "is the wrong man" to lead the organisation.

In an interview with the Sunday Independent, Mr McGuinness also says Fianna Fail "must get 45 seats" or the future of the party, as well as leader Micheal Martin, will "be in question".

He has also said he has been "vilified" within his own party for speaking out.

Mr McGuinness opposed the establishment of Irish Water and has called for its abolition, but he has also accused former environment minister Phil Hogan of "doing more damage than Cromwell".

Mr McGuinness said it was a "daft idea" by the Government to establish the "super quango" without proper planning and political proofing, but has called on Mr Tierney to depart from his post.

"I know him personally from his time on Kilkenny council. I think he is the wrong man for that job, in terms of the size of the operation. What effort was made to get the skill set required to run a company like that? It was not his fault, the Government set it up, but it is now, as he took the job and is in charge," Mr McGuinness said.

In relation to Mr Hogan, who was a constituency rival of Mr McGuinness in Carlow-Kilkenny until he became EU Commissioner last year, the PAC chairman was scathing in his criticism.

"He is my constituency colleague but he had a job to do, and he botched the job of establishing Irish Water. Like everything else, they are reluctant to do a U-turn when a mistake is made," he said.

"But a big mistake was made; they should have gone back to the drawing board. It wasn't politically proofed and introducing it at a time when the country and its people were in such dire straits was crazy."

He also has railed against the huge cost borne to establish Irish Water.

"It was a daft idea to bring about this super quango when this Government promised it would abolish quangos. That has not happened. Yes, there will be problems in turning back the clock on Irish Water, but the costs of doing that would have to be considered in the context of keeping the thing going," he said.

"What country in the world would transfer €11.5bn in assets to, essentially, a private company and then pay that company €500m a year out of road tax. Nobody seems to be bothered that this money was raised out of road tax, and the roads in the counties are falling asunder."

On Mr Hogan, Mr McGuinness said 'Big Phil's' impact on their home city of Kilkenny had been disastrous, particularly his abolition of town councils.

"All you have to do is look at this city and see the legacy of Phil Hogan. He has divided our city in two. He has ruined and wrecked the structures of local government. He did more damage to it than Cromwell did when he was here," he said.

Speaking as the controversy over the conservation grant raged, Mr McGuinness said it should not be paid, it was as simple as that. It was being given to people who were not co-operating; it was a nonsense that should be stopped, he added.

Turning to the pending general election, Mr McGuinness said Fianna Fail must return with at least 45 seats or the future of the party, as well as leader Micheal Martin, was in question.

"Looking to the general election, we have to come in the mid-40s in terms of seats. It is an issue for Micheal Martin and the party," he said.

"Based on the results in the by-election here and the local elections last year, you would imagine we should be targeting the mid-40s in terms of seats.

"If you were to take the current polls, we are going to come in in the mid-30s. That would be very disappointing for the party."

In terms of coalition options, Mr McGuinness said Fianna Fail could not afford to close the door on any partner at this stage.

"If Fianna Fail gets the numbers to be a player at the table to form a government, they have to keep all of their options open. Yeah, maybe we will look at Sinn Fein, yeah we will look at Fine Gael, yes maybe we will have this arrangement of supporting a minority Fine Gael government from the opposition benches," he said.

But the PAC chairman, who has clashed with his party colleagues over his outspoken views, said the party still had not laid the ghosts of "that defeat of the 2011 election" to rest.

"I am often accused of speaking in a negative vein about everything and anything. If you don't expose the negatives, you will forever have them as ghosts in the room," he said.

"Therefore, these negatives have to be dealt with and they haven't been dealt with.

"It is like a bereavement, and we certainly had a bereavement in 2011. Fifty-eight seats, 58 of my colleagues did not come back."

He went on to talk about how he has met strong resistance to his outspoken views.

"Within my own party, Fianna Fail, I am vilified for talking about radical reform and renewal outside the parliamentary party room, because inside it nothing is ever discussed at length, and any attempt to introduce meaningful discussion or debate is met with a horrified silence.

"My first duty is to the people, not the party, and if my party will not listen, I will take my concerns to the people," he said.

Mr McGuinness said the party was still operating under the same culture that led to those 58 seats being lost.

"But what has not happened within the party is that culture which lost us 58 seats, that culture is still there. A culture of secrecy, interference from the party at national level in local affairs, the non-examination of why people have left the party, why really did Averil Power leave? Why really did David McGuinness leave?" he said.

"The dumping on individuals because they leave and the attempts to discredit them is part of that old culture within Fianna Fail. Shooting the messenger, playing the man not the ball.

"We have never dealt with those cultural issues since that defeat in 2011. No, we haven't dealt with the reasons why we lost so many seats.

"There is a lot of disquiet about it."

'We Make Our Money On Our Reputation’

Elizabeth Arnett, the current spokesperson for Irish Water and former spokesperson for RPS Consulting Engineering

Elizabeth Arnett, the current spokesperson for Irish Water and former spokesperson for RPS Consulting Engineering

On RTÉ Radio One’s This Week programme yesterday, journalist John Burke reported that, after five years and €2.2million in legal fees paid by Dublin City Council, the council has dropped its Supreme Court appeal against a High Court judgement made by Mr Justice Liam McKechnie in 2010.

In his judgement, Judge McKechnie found RPS Consulting Engineering – which had been hired by Dublin City Council to carry out a review of Dublin’s waste policy – had altered official data and waste reports to suit Dublin City Council’s agenda.

He also heavily criticised the then assistant city manager Matt Twomey.

In his ruling, Judge McKechnie said:

“In the course of the hearing, a number of draft reports, prepared by RPS and Dr Francis O’Toole were handed up to the court which contained comments written by the respondents indicating which parts of earlier drafts were acceptable to them and either deleting or rewording those parts which would not have supported their position. Whether or not the city managers were aware of this fact is, in my opinion, immaterial. Mr Twomey certainly was. Such massaging of reports which were later, in their edited versions, released publicly is a strong indicator to me of unacceptable influence in a process supposedly carried out in the public interest. Some view must have been formed in order for the process to start. However, in my opinion, the actions of the respondents in this case, and particularly Mr Twomey, go far beyond this. The indicator rigidity of mind so that from the start there could have been no other outcome. This is particularly serious, notwithstanding any subsequent public consultation. It is clear that such consultation not only did not have, but could not have had any affect on the outcome of the the variation process. It was a given from the start.”

On yesterday’s programme, Mr Burke played a clip from RPS’s then spokesperson, Elizabeth Arnett – the current Head of Communications and Corporate Service at Irish Water – after the ruling was made.

She told RTÉ’s Prime Time:

“RPS were certainly not massaging the figures and I want to categorically refute that. In producing a final report, you produce drafts and you edit and you consult with your client, to make sure you get the right result, that is the way we produce reports. That you get a report, that the figures can stand up. The Environmental Protection Agency can approve, the EPA can approve and all of the statue bodies can approve…We stand over all of the reports. We would never change fact and we would never change our opinion. We might reword, we might delete, we might sharpen up text, to edit it. We would never change fact and we would never change opinion. We make our money on our reputation to be able to provide facts and to provide opinion. I think the entire judgement is wrong.”

Readers will recall that, in November 2013, it emerged Dublin City Council had paid more than €30 million to RPS for its services over the previous ten years in relation to the Poolbeg incinerator, even though the council’s contract with RPS was originally estimated at €8.3million.

The European Commission eventually found that the contract did not conform with EU law.

Readers may also wish to recall that Jerry Grant, a former managing director of RPS from 2002 until 2012, is now Irish Water’s head of asset management.

There you go now.

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Council drops appeal against Poolbeg incinerator judgment (Irish Times)