Calls to cut salaries of bosses at Irish Water

Environment Minister Alan Kelly has been urged to slash the salaries of Irish Water managers after it emerged the group is costing twice as much as similar bodies in the UK.

The call was made by opposition parties in response to reports showing the State utility will cost the taxpayer €1.9bn to run over the next two years.

Details revealed yesterday confirm Irish Water’s operating costs between now and 2016 will cost twice the average amount for similar regional groups in England and Wales and 2.6 times the price of its Scottish equivalent.

The comparison was drawn up by independent London-based consultancy Nera, which was particularly critical of staff spending issues.

The report says the decision to continue employing 4,300 council workers once Irish Water is set up may not be necessary and will effectively lead to some positions continuing despite being obsolete.

It says spending on salaries at the organisation is high at 29% of total costs, compared to 10.5% for groups in England and Wales, 21.9% for those in Scotland, and 11.6% for a similar operation in the North.

Despite an Irish Water spokesperson insisting that spending is appropriate, opposition parties said the report highlights how the State is inadvertently creating a “corporate monster” with taxpayer money.

Pointing to the fact the average salary for 96 of Irish Water’s most senior staff is €108,000 a year, they insisted Environment Minister Alan Kelly should consider slashing the payments if he wants any public support for water charges, which will be imposed in two months.

“I am not surprised by these figures because, from the beginning, Irish Water has had a gold-plated bonus culture attached to it,” said Fianna Fáil environment spokesman Barry Cowen.

“This bonus culture was facilitated by the Government when it awarded the Irish Water contract to Bord Gáis against the advice of an independent report the Government itself commissioned.

“The price people have to pay for water reflects the costs in setting it up.”

Mr Cowen’s Sinn Féin counterpart, Brian Stanley, said the figures show the State is in danger of creating a “corporate monster” which will fail to offer value for money.

“They’ve made a mess of the water system costs. They need to reduce staff, end the duplication of council and Irish Water engineers, cut salaries, and end bonuses,” he said.

“There needs to be a root-and-branch review of the cost structure.”

Mr Kelly did not respond to the issue last night.

However, an Irish Water spokesperson defended the situation, arguing that it is unfair to compare a new group’s costs with others that are “over 25 years old”.