Irish Water gets funding for 1,100 redundancies
Published 23/04/2014 | 00:02
IRISH Water will cut its workforce by up to 1,100 through a voluntary redundancy scheme for local authority staff.
Environment Minister Phil Hogan has sought funding to pay for a scheme to reduce the number of staff servicing the semi-State.
The move follows a leading ESRI economist earlier this year warning families would face higher water charges as the firm was being forced to employ double the volume of staff required.
Under service level agreements running until 2025, Irish Water will have to take on more than 4,000 local authority staff. Irish Water executives had stated they believed they would need less than 2,000 staff.
Senior researcher at the ESRI, Professor John FitzGerald, warned the extra wages and costs for 2,000 extra staff could amount to €150m a year - or up to €2bn until the agreements expires in 2025.
Irish Water stated it expected that voluntary redundancy schemes would be introduced as required.
A memorandum brought to Government by the Environment Minister sought the provision of additional funding from the sale of State assets to the Local Government Fund from 2015 to 2016. It stated the voluntary redundancy scheme for up to 1,100 staff up until 2020 would cost some €39m.