FINE GAEL has called on the Government to establish a single publicly owned water utility company to take over responsibility for water investment and mains management on a national basis while allowing local authorities to tender for provision of services.

The party’s environment spokesman, Phil Hogan, said: “there are 34 entities in the State dealing with water and a new way is required if Ireland is to meet its objectives under the EU water framework directive” and if it was to provide good quality water.

He said “the local authorities and Department of the Environment have failed to ensure we have good quality ground water” and “have allowed indiscriminate dumping of waster water into our streams and rivers to continue”.

Mr Hogan said the IMF and EU “say there is a new requirement to attract money and investment into the water services programme”.

He said Minister for the Environment John Gormley’s difficulty appeared to be that “we are going to privatise the water supply. I want to assure the House this is far from what is intended. We want to keep the pipe network in public ownership.”

Mr Gormley said the Government would begin an assessment shortly “of the need for a national water authority, which will consider the role of such an authority; the costs and benefits of establishing it, and its relationship” with others in the sector.

But he said “Fine Gael’s policy was one-dimensional. They want to set up a water company and that’s about it. The party does not have a clear position on water charges – or if they do, their leader is unable to articulate it.”