Irish Water will pass ‘market test’ by EC, says Taoiseach

Taoiseach Enda Kenny said he is confident Irish Water will pass the so-called "market test" when the European Commission examines the new structure unveiled by the Government this week.

Speaking in Cork this morning, where he was attending a jobs announcement, Mr Kenny said he was confident Irish Water would pass the market test.

“I think it’s important to point the troika programme in Ireland has ended. They exited last year but they have a duty to come once every six months and review what’s happening so the only purpose of the European Union being involved in Ireland’s programme now is purely for statistical purposes.

“So we are very happy that the scheme put forward is predicated on passing the market corporation test as defined by Europe so their only involvement here now is for statistical purposes only,” said Mr Kenny.

“No, I’m not concerned at the commission’s view and I’m very happy that Ireland will measure up here in the way this particular scheme has been designed.”

Asked if the Government had a plan B if Irish Water does not meet the state aid rules, he said: “The Government is happy and confident that Ireland will measure up in terms of the way the scheme has been designed and obviously Eurostat will do their analysis at the end of spring next year but we are happy that we will be able to meet the requirements there.”

Meanwhile, Minister for Enterprise Richard Bruton said the Government had dealt comprehensively with the Irish Water issue with a set of “robust” proposals.

“Clearly the Government has listened to public concerns on this issue. We now have a set of proposals that meet people’s concerns. They are robust.

“I am absolutely confident that they will pass the so-called ‘market test’ which will allow us to set up a utility that can invest in a network that badly needs that investment, and which wouldn’t be possible without such a utility, he said in Brussels ahead of a meeting of trade ministers this morning.

He said the “bigger picture” of why Irish Water was set up needed to be kept in mind. “If you go the route of raising water charges as opposed to raising income taxes, you get several benefits.

“Firstly you get a utility that can invest in a network which badly needs the investment and, secondly, you avoid having to put more taxes on work at a time when we are trying to create employment.”

He said the proposals for Irish Water represented a “pro-employment approach” to raising revenue, adding the new structure will “copper-fasten” the long-term future of a water network that supports the needs of homes and families, and also those of investors in Ireland.