PAC accuses Irish Water of ‘shortchanging’ the taxpayer

Irish Water has been accused of "shortchanging" the public after millions of euro more in taxpayer payments to the controversial body were revealed.

The claim was made during a four-hour grilling of Department of Environment officials by the Dáil’s public accounts committee, which has again called on the State’s independent financial watchdog to be allowed undertake an in-depth examination into what exactly the new group is spending the money on.

Under intense questioning from PAC chair John McGuinness, the department’s new secretary general, John McCarthy, and assistant secretary general, Maria Graham, confirmed that, over the next three years the taxpayer will provide Irish Water with €650m for “network” repairs.

In addition, assets worth an estimated €11bn will be handed over to the State company — which will only pay €10bn for the assets over the next 10 years — while €200m in loans will also be given to the company by the Department of the Environment.

Ms Graham repeatedly insisted the taxpayer is not losing out, as Irish Water is a State-owned company, adding that, in return for the funds and assets, the State will receive a “higher level of delivery, a moreresilient network, a more efficient operation” and be closer to meeting EU public health standards.

However, Mr McGuinness said the public is being “shortchanged”.

Calling for the remit of the State’s independent public finances watchdog, the Comptroller and Auditor General, to be extended so that it can examine Irish Water’s accounts in greater detail, Mr McGuinness said none of the plan is a “good deal” for hard-pressed taxpayers.

“The taxpayer is being asked to pay X amount a year for water it is then charged on,” he said. “It does not look to me like a good deal. This is a substantial amount of money.

“The fact of the matter is all of that money is taxpayers’ money. At the end of the day, the bill is to the taxpayer. Someone has been shortchanged here. That’s all I’m saying.

“Irish Water, like Eirgrid and others, should come under the remit of the C&AG. I think this is absolutely ridiculous and should be re-visited.”

Irish Water has repeatedly come under fire in recent months for its cost to the taxpayer and water charges, which are due to be implemented this autumn and which have already provoked protests and blockades against workers attempting to install meters linked to the planned fees.

Among the most serious controversies to have already engulfed the group has been an €86m payment to consultants who helped to establish the body, an additional €100m “start-up” fee which cannot be examined by the C&AG, and revelations that Irish Water workers will be entitled to bonuses while employed at the organisation.

In addition, Irish Water held a laughter yoga seminar for employees and pays 29 officials more than €100,000 a year.

Households will have to pay a minimum of €240 annually when related water charges are imposed next year.