Ireland water network investment

The problems with leakage caused by the severe winter have brought Ireland’s lack of investment in its water network into sharp focus. Water losses have run at 16% to a massive 58%. With water supply being rationed in Dublin and other cities the Government is being forced to act.

Ireland’s problems are two fold. Since water charges were scrapped in 1997 water losses have escalated and the funds have not be available to invest in maintaining the network or replacing aging water mains.

Now Environment Minister John Gormley has announced 300m Euro investment over the next five years in replacing water mains. But this is not new money instead it is being redirected from elsewhere in the Department of Environment budget. Alongside this plans to install water metering to 1.2 million homes have been announced as a means of reducing water consumption.

Suppliers hoping for a boom in work should be cautious. Although metering has been agreed in principle there has been no agreement on what water charges will be introduced. The experience in Northern Ireland demonstrates the huge political difficulties of introducing charges. This means that there is a significant risk that investment will be held back due to lack of funds