The water funding gap in Ireland

The delivery of public water services in Ireland has faced a funding gap in recent years, primarily through the impact of the economic crisis but also through the impact of the pricing policy on the various stakeholders. This funding gap has left the customer without a sense of ownership and responsibility; the supply chain vulnerable to investment troughs; an underdeveloped regulatory environment; and a fragmented array of water service local authorities. The arrival of the EU/IMF bailout mechanism for Ireland in November 2010 provides the context for a new funding model for Ireland that better meets the challenges of a national water service in the twenty-first century. However, this demands that the lessons are learnt from the existing model and that the new funding mechanisms do not build in costs through the adoption of expedient policies - a lesson with international relevance. The new funding model also provides an opportunity to address the intrinsic value of water through the adoption of realistic abstraction charges to fund catchment management and natural water environment.