Irish Water’s €5m consultants bill after charges end

Embattled utility still splashing the cash on expert advice

IRISH Water has spent €5m on outside business strategists, lawyers, computer experts, public relations and finance specialists in the six months after the Government formally suspended the controversial charges, the Sunday Independent can reveal.

The revelation that the embattled utility has paid over €826,000 a month on consultants since May 1 — when it was effectively placed in limbo by the Government — will infuriate nearly one million people who have handed over €144m in water charges last year.

Those who paid their bills still have no idea if they will get that money back if charges are ultimately abolished.

Last night Fianna Fail’s environment spokesperson Barry Cowen said legislation was urgently needed to ensure the utility was fully accountable for all money it spent.

The list of lucrative contracts includes an average monthly bill of nearly €3,000 for public relations services at a time when a major question mark hangs over the future funding of the company.

Documents reveal nearly €5m was spent on ‘third-party’ services from May 1 to the end of October this year. This includes €775,141 on ‘business change’ support services.

Ernst & Young was paid €406,268 for its expertise, while official records show accounting and consultancy firm PricewaterhouseCoopers received €123,570.

Efforts to improve customer services supports also came with a hefty price tag, costing €774,848. It is estimated €32,285 is being spent every week to help improve and streamline customer services.

Ernst & Young also emerged a big winner, earning almost €486,000 for its expertise in the area.

Official records also show that hiring in legal expertise remains a major drain on resources — costing on average €56,800 a month.

In total, €340,830 was ringfenced to cover costs in this area over a six-month period. Dublin-based legal firm McCann Fitzgerald was paid a total of €79,071 since the beginning of May. The next highest earner was Philip Lee, a specialist commercial law firm, who received payment of €71,438. Invoices for the services provided another law firm, Arthur Cox and Company totalled €45,410. Some €55,700 was allocated to covering the fees of a ‘senior counsel’, although records do not specify the reason for the expenditure.

PricewaterhouseCoopers received another separate payment of €68,000 for its “support on specific technical investment and engineering projects”. A further €113,277 was spent to ensure the “highest standards of governance” in areas like business analysis, information security and data protection. And Murray Consultants, one of Ireland’s biggest public relations agencies, was paid €16,866.

The expenditure comes against a backdrop of continuing uncertainty as to what approach will be adopted with customers who have already paid their water bills.

In a statement, Irish Water said it can require technical assistance and third-party support at any given time. Such expertise was not required on a permanent basis and therefore it was considered more “cost effective” to employ third-party specialists “as they are required”.

A spokesperson said the use of third-party external service providers represents just over 1pc of its annual operational costs. A company spokesman said the relevant data covers the period of May 1 to October 31 this year.

This was on the basis the clause facilitating the suspension of water charges was contained in the confidence and supply arrangement — put in place at the beginning of May on formation of the Government.

Speaking to the Sunday Independent, Fianna Fail’s environment spokesperson Barry Cowen said legislation was urgently needed to ensure the utility was fully accountable for all monies it spent.

He pointed out that the confidence and supply ar- rangement Fianna Fail has agreed with Fine Gael commits to retaining Irish Water as a national utility in public ownership. He said the agreement meant the company must be answerable to the Dail under a number of headings.

“We would have hoped that process would be complete by now, but it’s obviously not, and it’s something we’ll be taking up with the minister, with a view to bringing forward relevant legislation to give effect to that.”

He believes this would result in greater “transparency” in the operations of the utility.

The commission established to examine its future operations recommended that funding for the country’s water infrastructure should come through general taxation — but that there should be charges for wasteful use.

A special Oireachtas committee will now also decide if those who did not pay previous water charges should be prosecuted.

Deputy Cowen says the party is keeping an “open mind” on whether those who use excessive amounts of water should be liable for some financial payment.

“The main thrust of the recommendation is that it is paid for out of general taxation, and we agreed with that analysis.

“But there are many questions outstanding,” he said.

In a statement, Irish Water said “significant progress” had been made since the suspension of charges.

This includes “continuing the development of a single way of working for Irish Water as a public utility, to allow for a full transformation of services to the utility from local authorities.

“This is an enormous undertaking.

“We have developed new systems for local authorities to report vital information on operations, leakage, water and waste water quality to us electronically and in real time in a standardised and consistent way”.

These and other projects had required “specialist support”, but would have a “lasting significant value” for Irish Water as a utility.