Irish Water urged to justify fees

Tanaiste Eamon Gilmore has challenged Irish Water to prove that 50 million euro spent on consultants' fees was good value for money.

As Fianna Fail leader Micheal Martin branded revelations of the multi-million euro payouts a "scandal waiting to evolve", the Tanaiste questioned the need for such an expense.

"I've seen the figure for the expenditure by Irish Water on consultants," Mr Gilmore said.

"It does seem to me to be a high figure and I think Irish Water will have to demonstrate that it represents good value for money, and that the expenditure was necessary as part of the set-up costs for Irish Water."

Chief executive John Tierney revealed today that Irish Water spent more than 50 million euro on consultants over the last year.

He said a total of 100 million euro had been spent in setting up the company - more than 50% of which was paid to consultants, which included large firms based in Ireland.

Mr Tierney said the company would have limited money to spend on consultants in the future, because it will have already hired in the expertise.

He told RTE that plans are on track for the company to be in operation by 2015 and that its rollout remained on budget.

But Fianna Fail's Mr Martin criticised the fledgling organisation, which will serve as a new national water utility as a state-owned subsidiary within Bord Gais.

He described it as a quango in the making and warned householders will end up paying the price.

He said the 50 million euro figure was "an extraordinary situation" and one that is likely to escalate.

He also claimed that local authorities are "completely in the dark" about the organisation and that they are losing staff to it.

"I think this is going to get bigger and bigger," Mr Martin said.

"And this Government, prior to the election and Phil Hogan in particular was a great man for saying he was going to cut quangos and reduce a number of so-called quangos and so on like that.

"He has created a hell of a one now and I think it's going to eat up resources, and ultimately the customer and the person in the house will end up paying for all of this."

SOURCE-IRISH INDEPENDENT