Calls for water infrastructure spend

Simon Coveney, Minister for Housing, Planning and Local Government

Housing Minister Simon Coveney is being urged to ensure €148m in unspent funds for water meter installations instead goes towards fixing urban pipes and drainage systems.

A decision by Irish Water not to install up to 180,000 water meters at present should allow the company reallocate funds into capital infrastructure projects, Opposition TDs argue.

Minister Coveney says the saved money will go on non-domestic water meter upgrades and towards water works on lands that can be used to help address the housing shortage.

But Sinn Féin want the money pumped directly into fixing pipes and drains in order to help Ireland avoid being slapped with large fines for failing to implement an EU urban waste water directive.

Minister Coveney, in a parliamentary answer to Sinn Féin’s Eoin Ó Broin, confirmed the underspend in the domestic water metering programme.

Domestic metering contracts, agreed in 2013, were to install 1,050,000 devices over three years, he said.

“Ministerial consent was given to a budget of €614m including Vat for this purpose,” said the minister.

But the installation has stopped now, with Sinn Féin sources suggesting this is partially due to opposition to meters in housing estates and some urban areas.

In his parliamentary response, Minister Coveney added: “I understand from Irish Water that the expected capital expenditure by August 2016 will amount to €465m, which will deliver circa 870,000-880,000 meter installations.

“As such, savings of about €148m will accrue on the capital metering programme.

“Up to 180,000 meters included in the original programme will not be metered at this stage, for a combination of health and safety reasons, service complexity or other technical reasons.”

Deputy O’Broin says that the water meter funds could be better spent elsewhere.

“There is an under-spend of up to €148 million which has the potential to be reallocated.

“There is a sense of urgency in re-allocating these monies.

“We have heard off the record that Irish Water’s parent company Ervia is currently negotiating a six-month extension to the original water metering contract.

“It is alleged that the board of Ervia is soon to ratify this extension.

“I will be writing to both Minister Coveney and Ervia in an attempt to clarify this claim. It is outrageous that money is continuing to be spent on domestic water metering.

“Given that Ireland is currently undergoing infringement proceedings for a failure to implement the Urban Waste Water Treatment directive and that water infrastructure is crumbling, this funding would be better spent in addressing these issues as opposed to continuing with this controversial programme.”

Original article: Juno McEnroe, Irish Examiner July 16, 2016

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Water bills bring in just a quarter of expected income after new freeze

Irish Water collected just over a quarter of what it expected as floods of householders failed to pay their water bills in the wake of the Government's decision to suspend charges.

The utility collected just €18.3m during the fifth billing cycle, which covered the period between January and March.

This is almost half of the €33.4m collected in the final three months of 2015 and just over a quarter of the €66m which the utility would expect to collect in any billing cycle.

It means Irish Water is now facing a serious funding shortfall, which will have to be filled from general taxation as no more bills will be issued this year.

Bills for the first quarter of 2016 were issued in April and May, just as Fine Gael and Fianna Fáil were negotiating the deal that resulted in the formation of Enda Kenny's minority Government.

In order to secure Fianna Fáil's tacit support, the Taoiseach agreed to set up a commission to look at whether water charges should be abolished. It will take five months to study a variety of funding models.

However, it has already been mired in controversy after chairman Joe O'Toole resigned as Opposition parties complained he was not impartial.

The commission's report will be debated by an Oireachtas committee before the Dáil votes on its recommendations.

In total, 989,000 households have paid water charges at some stage over the past five billing cycles. This includes 14,000 new customers this year.

However, Irish Water refuses to reveal the breakdown of how many households have paid their bills in each cycle.

In a statement, the company said it had been reassured that any shortfall in income due to the suspension of charges would be covered by the Exchequer.

"This will allow Irish Water to continue to deliver on its business plan," it said, adding that customers remained liable for any outstanding amounts due.

"There is no change to water service charges for business customers as they are unaffected by the suspension of domestic water charges," the company said.

Irish Water plans to spend €5.5bn between 2013 and 2021 on the network, including upgrading and replacing plants, water mains and sewers, as well as eliminating leaks and lead piping.

Reacting to the figures, Anti-Austerity Alliance TD Mick Barry said they showed a widespread boycott. "This is a massive rejection of the charges, and people are sending a clear message to the Government and Simon Coveney that they want to see them scrapped.

"Over the last 18 months we have said that there were many people who only paid because they felt bullied or intimidated into it by the Government and Irish Water's threats.

"Now that the fear is gone, this level of non-payment reflects how people really feel on the issue," he said.

Mr Barry said the "writing is on the wall" for Irish Water and the Government needed to "accept defeat".

Original article: Kevin Doyle, Irish Independent, July 12, 2016

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Irish Water's €1m bill for travel

Staff at embattled utility clocked up over 1.7 million kilometres in one year

The under-fire semi-state company, which has been ravaged by controversy since its establishment, defended the spending and said the figure accounted for 3,641 work-related trips

Irish Water staff racked up a bill of nearly €1m last year on planes, trains and automobiles, the Sunday Independent can reveal.

Staff at the embattled utility clocked up more than 1.7 million kilometres while on duty in 2015, ultimately costing €874,751.18.

This substantial bill included all money spent on public transport, as well as flights, mileage and taxi fares for Irish Water employees last year.

Almost 90pc of the total - some €780,000 - pertained specifically to "car travel expenses", which according to Irish Water, included claims from staff submitted for "mileage, toll charges and car parking expenses".

A total of €15,542 was spent on flights, while €67,686.61 was spent on trains, Luas and bus fares, according to documents released to the Sunday Independent through a Freedom of Information request.

A separate €11,982 was spent on taxis by Irish Water in 2015, an average of almost €1,000 per month.

The under-fire semi-state company, which has been ravaged by controversy since its establishment, defended the spending and said the figure accounted for 3,641 work-related trips.

However, this means that each trip cost an average of almost €237 each.

Read more: Irish Water boss admits conflict of interest to board

Irish Water defended the bill and said the company's policy stipulates that its 700 staff in 14 different locations should use "public transport where possible and use their own car only when absolutely necessary".

It said: "Journeys by car, subsequently claimed back in expenses, should only be undertaken when there is absolutely no suitable option available on public transport.

"Travel expenses are paid upfront by the employee and claimed back as an itemised business expense. Receipts must be provided before an expense claim can be signed off by a supervisor."

Of the €15,542 spent on flights, the company said they were all booked in economy class and at the lowest available price.

It added: "All of the flights were taken within Europe, well over half of them were to the UK.

"Personnel travelled to attend expert conferences, visit other water utilities and to attend meetings with the purpose of developing best practice in Irish Water and to share our expertise around operational issues and asset management, among other business concerns.

"All flights were economy class and booked to take advantage of the lowest available fare."

Original article; Emma Jane Hade, Sunday Independent, July 3, 2016

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