Irish Water scandal - Lack of openness is appalling

Even before a tap has even been turned on, the shambles engulfing Irish Water’s splurge of €85m on consultancy fees has turned into a major PR disaster for the new semi-state.

Displaying scant regard for the long-suffering taxpayer, it is also a glaring example of government failure to rid the system of a costly bonus culture this benighted country can ill afford.

Once again, a jaundiced public is gazing at the spectacle of politicians struggling to close the stable door after the horse bolted. Quicker than water can leak from a broken pipe, the hard-earned money of those fortunate enough to have jobs has been flowing into the coffers of international consultants. This despite the fact that effective homegrown templates for billing and metering utilities such as electricity and gas have for years been run effectively by the ESB and Bord Gáis. But both were apparently ignored. The bitter irony is that Bord Gáis is an umbrella for the new water-distribution company.

Having defended its highly questionable performance to date at the Environment Committee, Irish Water chief executive John Tierney and officials from the Commission for Energy Regulation were grilled yesterday by members of the Public Accounts Committee.

Characteristic of this Government’s disregard for public opinion, Environment Minister Phil Hogan has persisted in defending the indefensible, justifying the expenditure by claiming that Irish Water will give good value for money. Hopefully, that will happen at some point in the future but until that day dawns, judging by the way things have started out, a lot more water will follow the 40% currently leaking into the ground.

In a blatant buck-passing exercise, Mr Hogan says it is “a matter for Irish Water” that its 510 staff will be entitled to bonus payments for meeting specific targets. Other ministers are scathing and singing from different hymn sheets. Seemingly, the sole exception to the bonus deal is Mr Tierney, a former city manager for Dublin who is getting a salary of €200,000 a year. People have every right to be angry that a so-called golden circle is flourishing in these times of austerity.

This underlines an outdated mentality reminiscent of the civil service mindset. It is incredible that bonuses are already being factored in by a company which will soon impose penal water charges on its customers. In the real world there is a push for lower wages. There should be no place for a performance-related bonus in Irish Water and it ought to be scrapped.

Mr Hogan’s repeated handwashing in this calamity are pathetic. He may not “micro-manage” Irish Water but he has responsibilities. The question is, if his officials did not brief him, why not? It has opened him up to a Sinn Féin charge that he doesn’t manage at all. A view many might be inclined to share.

Thanks to the negligence of successive administrations, the country’s water distribution network is little better than a sieve. Arguably, instead of splurging millions on consultants, the money could have been spent on a highly visible repair and maintenance exercise. Instead of a shambles, Irish Water might then have set out with something of a PR coup, thus winning the public’s trust rather than its suspicion and anger. The lack of openness and transparency surrounding the birth of Ireland’s newest state company is truly appalling.