Some 150,000 households on group water schemes will have to either ensure their drinking water meets EU standards or close their schemes down, under proposals for a new national water services authority.
The authority is to be set up to oversee state investment of almost four billion euros on drinking and waste water.
Legislation for the authority is to be introduced before the end of the year. The Government expects its measures to be operating by 2003.
Of the 150,000 mainly rural households connected to such schemes, about 90,000 receive water from local authorities. These are expected to be least affected by the licensing system, though some will have to upgrade pipes. Of the remaining 60,000 households, however, 43 per cent are receiving substandard water from private supplies. These will have to close if they fail to meet licensing criteria.
The new water services authority will also monitor municipal drinking water and sewage services and will have an inspecting role similar to that of the Environmental Protection Agency.
Announcing the proposals this week, the Minister for the Environment, Mr Dempsey, said the authority would have "a broad development role" and should "become a centre of excellence where we can develop the capacity to more effectively procure and manage water services".
Main points of the proposed water services bill:
The setting up of a national water services authority to oversee investment of about four billion euros.
The introduction of a licensing system for all group water schemes
The national rural water monitoring committee to be put on a statutory basis
Improved management of city and county council water schemes. The consolidation and modernisation of diverse legislation dating from the 1800s.