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Column Irish Water set-up is repeating the mistakes of the HSE

No real savings can now be made for 12 years in Irish Water, while we create a duplicate of the existing arrangements and also set up an expensive new central agency to boot, writes Eamon Ryan.

YOU KNOW THE Government is getting things wrong when they start blaming others for the mistakes they themselves made. Pat Rabbitte was at that game yesterday when he blamed the Troika for rushing through the establishment of Irish Water. He seemed to think that this was the cause of the extensive bonuses and large consultancy payments that the company is now paying. However, the problems besetting Irish water are all very much of the Government’s own doing.

Early in 2011 the Troika did sign off on a study which was designed to look at various options for the delivery of water services in Ireland. However, the new Government came into office and changed the terms of reference for the report, ruling out other options and simply asking what form of single water authority was now preferable. It seems that Fine Gael and Labour were set upon giving responsibility for the water network to Bord Gais from the start, and they ignored the recommendations of the PWC consultants report not to go ahead with combining energy and water services within the one utility.

In both England and Wales a similar approach had already been a failure, where they eventually ended up having to separate the water and energy services at a large cost to the public.

Staff and budget levels way above international norms

The Government decided to ignore the existing evidence and proceeded to set up the agency with little or no proper debate in the Dail. They also ignored the evidence that had been presented by the ESRI at the Oireachtas Environment Committee in January 2012, which raised concerns that few real savings could be made if the new company simply took on the full staff complement of the local authorities. The existing level of staff and budget levels are way above international norms, so the ESRI was confident that some €2 billion in efficiency savings could be made.

However, when it came to the final drafting of the necessary regulations, Phil Hogan caved to pressure from the local authorities. The same staff levels were to be kept in place for the first 12 years and the local councils were given the power to decide who should stay and who should go. Those councils have no incentive to deliver the €150 million-a-year savings that the ESRI estimate is possible. One wonders how the Department of Finance could have signed off on such a deal, but presumably they were influenced by the fact that, by putting the new agency in with Bord Gais, it would be possible to take the companies’ debt off the state books and make their own figures slightly better.

The fact that the Irish public would end up paying over the odds for the service, to the tune of some €90 per-household per-year, seemed to have bothered no one. This is a regulated asset where the consumer has no choice but to pay.

A repeat of the establishment of the HSE

What we have ended up with is a repeat of the establishment of the HSE. No real savings can now be made for 12 years, while we in effect create a duplicate of the existing arrangements and also set up an expensive new central agency to boot.

Given that the legislation is already passed and over one hundred million euro has already been spent, what can we now do to turn things around? Even at this late stage it would be better for the Government to admit its mistakes and amend the relevant legislation, taking back from the local authorities the power to deploy staff into the new agency. Those same people could instead take on some of the urgent work that needs to be done in every county in the preparation of proper flood prevention works.

Making that change will not be easy, as it will require Phil Hogan to admit to making a mistake. That might be too radical a reform for the Irish political system and in the short run it is easier to blame the Troika, or the last Government, or whoever else makes an easy and convenient target. Perhaps admiting mistakes might be one of the political reforms that the Irish public desperately want to see, and in the long run it might do more than anything else to restore some confidence in our Irish water supplies.

Read: ‘In a mythical country, you’d have set up a water body with less people’ – Noonan

Read: Irish Water says staffing numbers will ‘reduce over time’

Read: “It’s not a quango”: Rabbitte defends €5.7m Irish Water ‘transition’ body

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    Mute Symbolism
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    Jan 27th 2014, 7:43 PM

    It would be nice someday to have a Government that governs in the interest of the people rather than screwing us every opportunity they get.

    118
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    Mute Shakka1244
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    Jan 27th 2014, 8:06 PM

    Yes it would but as long as the idiots in this country keep voting them in, it’s not going to change anytime soon.

    We are dealing with the “my father and my grandfather and his father before him” moronic logic.

    77
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    Mute Sean P
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    Jan 28th 2014, 1:00 PM

    Power to the people and all that …
    It’s not like the government obtained power by revolution – they were elected.
    Hence the outcome is each democracy gets the government they deserve.

    Irish voters need to free themselves from tribal voting, such as “we’re an FG family” and learn to think for themselves. Those who don’t want to vote have two options – don’t vote for someone, vote against them; or invalidate their vote. This would mean their vote has to be counted into the statistics/turnout and can still influence the result.
    The worst thing is to stay at home and do nothing.

    5
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    Mute Alan Johnson
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    Jan 27th 2014, 7:51 PM

    Will the unions waive their objection to compulsory redundancies to allow Irish Water to shed excess jobs now???

    108
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    Mute John Murray
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    Jan 27th 2014, 8:25 PM

    They are council workers no? Can they not be re-allocated at same pay/conditions by the Council to do more urgent work rather than be surplus to requirements at Irish Water. Look at the state of the roads and litter on the streets , surely a few extra bodies would help tourism/business at no extra cost.

    68
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    Mute Alan Johnson
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    Jan 27th 2014, 8:31 PM

    Well, its not as easy as that.

    These staff are almost certainly not litter pickers or grounds people.

    Its not a matter of sending X amount of staff back to Sligo Co Co to empty bins.

    If there are no suitable rolls in their former councils to fit their skill-set then a compulsory redundancy would be best.

    Problem is, the unions said “no way josé”.

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    Mute Pete Foley
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    Jan 27th 2014, 9:01 PM

    Boycott bord Gais move to another supplier for your gas and electric. Protest with your cash

    37
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    Mute Sean O'Keeffe
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    Jan 27th 2014, 9:10 PM

    Surprisingly lucid article from the former minister. However the flaw at the centre of his argument is the belief that thrift or fiscal prudence ever enters the equation when establishing quangos. Ryan should know this from experience. Thrift and fiscal restraint are only considered in relation to benefits for the disabled or home care. Not when cronyism or empire building are to be achieved.
    If Hogan et al had any interest in fiscal restraint they would have undertaken a cull of the hundreds of quangos already in existence rather than create more.

    39
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    Mute Antonov Merinov
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    Jan 27th 2014, 9:12 PM

    Please don’t anyone tell me that you are fùcking surprised at this outcome!

    36
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    Mute John Murray
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    Jan 27th 2014, 9:33 PM

    @ Alan I agree but the Unions seem to have a headlock on any practical ideas. A job is a job. A job on the same wages/conditions but offering better service to the needs of the public is out. Let’s employ lots of people who will have nothing much to do rather than manage them and give them work that is vital. If anyone’s unhappy they can join the 1/4 million others looking for work. Of course any change of practice has to be fair and in the same geographical area.

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    Mute Kirby Matt
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    Jan 27th 2014, 7:40 PM

    Ridiculous a real show of the corruption in this country. A IT system for the local council offices and that’s all that was needed this is a disgrace.

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    Mute Peter Richardson
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    Jan 27th 2014, 8:10 PM

    But that approach would have been relatively inexpensive, effective and and efficient use if resources. The major downside is that would not have facilitated what might be called party political patronage.

    55
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    Mute Brian Delivers
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    Jan 27th 2014, 7:35 PM

    Not paying a penny for filthy water. When folk in Roscrea can brush their teeth with it then..maybe…but if you want people to pay for something before its ready…

    …join kickstarter

    81
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    Mute ISBA
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    Jan 27th 2014, 8:19 PM

    Bad enough that this government has done sweet fa to deal with our out of control quango culture but to create a new monster STARTING life as a basket case. The lunatics have definitely taken over the asylum.

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    Mute The Green Monkey
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    Jan 27th 2014, 8:23 PM

    I’m thinking of buying a small island somewhere and starting my own country, my motto shall be “fool me once shame on you, fool me twice and you will be shot”

    49
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    Mute Mickey finn
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    Jan 27th 2014, 7:37 PM

    Why do we never learn. Is it so effing hard to do things properly. Like f#cking one job, one Man.

    81
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    Mute pat James buchannan
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    Jan 27th 2014, 7:57 PM

    Labour in power……. Create government jobs ….. Don’t matter if we need them ….just create them

    67
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    Mute Mary Griffin
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    Jan 27th 2014, 7:58 PM

    Plus his advisor, his admin staff………

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    Mute Sean O'Keeffe
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    Jan 27th 2014, 9:23 PM

    Direct democracy!
    If they don’t measure up – Sack em.
    Simples!
    Questions?

    23
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    Mute Limerick Soviet
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    Jan 27th 2014, 7:42 PM

    There’s money and jobs for the boys in what the hse did, that’s why Irish water is copying them.

    75
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    Mute Garry Coll
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    Jan 27th 2014, 8:01 PM

    While in government Eamonn Ryan gave a convincing impression of being a complete tool, utterly inept and beyond satire.
    That is why it is so difficult to take him seriously now, which is a pity, because this is one of the few articles on the scandal of the setting up of Irish Water to get to the heart of the reasons why it is a scandal.
    The stories peddled by the government, and it is correct to name them, Hogan, Rabbitte, Kenny, Noonan, that €4 billion in spending will lead to €2 billion in savings by 2020 is complete bollocks, and they know it.
    But I guess that’s what you say when you’re in government, to paraphrase Rabbittes excuse for being a liar previously.

    63
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    Mute Martin Ryan
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    Jan 27th 2014, 7:42 PM

    A lot of things can and will go wrong in 12yrs giving IW plenty of time to justify the over staffing and exuberant salaries and bonuses, but not off my back they won’t.

    62
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    Mute Declan Byrne
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    Jan 27th 2014, 7:44 PM

    We have learnt nothing over the years bad decisions by government un challenged government. This country is ruled by 5 or 6 ministers who are making a balls of things and still the people support FG without question. Absolute disgrace.

    56
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    Mute Marc Walsh
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    Jan 27th 2014, 7:56 PM

    Just goes to show what politicians really think of the ordinary publics money. Im sure Phil hogan shrugged his shoulders and said to himself “it’s not my money what do I care”

    51
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    Mute Peter Richardson
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    Jan 27th 2014, 7:43 PM

    Another fine mess you have made Laurel, as in Laurel and Hardy.

    We will pay very dearly for water so as to support this massive and totally overstuffed bureaucracy. It’s utter madness.

    The Government is looking after a lot of friends. Patronage is alive and well.

    The water tax was intended primarily as a tax raising measure but the bonus for the Government is lots of generously paid jobs and bonuses for the privileged.

    What a total and unmitigated mess. At least we know before the establishment of this water service that it’s just a cunning stunt devoid of real merit or sensible purpose.

    50
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    Mute Peter Richardson
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    Jan 27th 2014, 7:45 PM

    ” Another fine mess you have got us into Laurel. “

    21
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    Mute Kerry Blake
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    Jan 27th 2014, 8:15 PM

    Basically Peter it’s all aboard Enda’s gravy train and quickly as it’s leaving the station with the tax payers money….

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    Mute Sean O'Keeffe
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    Jan 27th 2014, 9:55 PM

    The best paid police force in Europe, shielded from transparency and those nasty whistleblowers.
    The best paid teachers in Europe churning out semi literate school leavers.
    The most expense healthcare system in Europe for the EU’s youngest population.
    Why would a semi state company providing water in Europe’s wettest nation be any different?

    33
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    Mute Pj Berry
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    Jan 27th 2014, 7:43 PM

    Do these clowns never learn..

    44
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    Mute pat James buchannan
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    Jan 27th 2014, 8:00 PM

    Ever

    7
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    Mute Sean O'Keeffe
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    Jan 27th 2014, 9:46 PM

    The clowns have learned too well. The ones that voted them into clownery have learned nothing! Expect more of the same from the next regime.

    19
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    Mute Declan Doyle
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    Jan 27th 2014, 7:35 PM

    Perhaps a more useful analogy would be the mistakes of the Green Party, regarding its green energy policy, which has imposed unwanted turbines and pylons all over innocent rural citizens.

    44
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    Mute One-Off Ireland
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    Jan 27th 2014, 7:40 PM

    Its the EUs energy policy. The current government is Labour/FG

    41
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    Mute Shakka1244
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    Jan 27th 2014, 7:43 PM

    Your comment is so typical of people. Bad mouth anyones opinion based on passed mistakes even if what they are saying is correct and makes complete sense.

    If everyone used your warped logic the only person allowed to voice an opinion on anthything would be Jesus Christ.

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    Mute One-Off Ireland
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    Jan 27th 2014, 7:52 PM

    Nah Shakka. The only people not allowed to be forgiven are the Green Party

    FF, Bertie, Galway Tent, Mahon Tribunal, Celtic Tiger, Property Bubble, economic crash… all can be forgiven,… but not those moralising greens

    36
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    Mute Alan Johnson
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    Jan 27th 2014, 7:52 PM

    So much wrong with that post Deccy.

    26
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    Mute Shakka1244
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    Jan 27th 2014, 8:04 PM

    Judging by the amount of red thumbs on my previous comment I’d safely say I’m correct in my analysis.

    It’s nothing to do with the greens, just the way people generally think.

    16
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    Mute One-Off Ireland
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    Jan 27th 2014, 8:09 PM

    Yep. Typically I observe that on here the more red thumbs you get the more correct you are.

    It will be interesting to see how many red thumbs I get,,,,

    18
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    Mute George Tómas Bradán
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    Jan 27th 2014, 11:37 PM

    what makes u think that

    1
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    Mute Kevin McCarthy
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    Jan 27th 2014, 8:37 PM

    One large scam to squeeze money from the already squeezed citizens. A bit like the banking bailout. Who is making the money and where is the money going? Scrap Irish Water and Property tax. Bring in a wealth tax and financial services tax. That is where the cash is.

    43
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    Mute Con Ó Domhnaill
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    Jan 27th 2014, 8:52 PM

    Tax Denis O’Brien

    40
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    Mute Ryan Ash
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    Jan 28th 2014, 12:01 AM

    The problem is that residential property can not be moved out of the country very easily. Likewise with water used in the State. Wealth on the otherhand can be. And transactions involving financial services can also.

    So while these populist comments get lots of thumbs up, they fail to reflect the fact that these two measures would do damage to the economy and would not generate predictable amounts of income for the Government each year. In fact the amounts generated would likely decline over time rather than increase.

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    Mute Maria Dardis
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    Jan 27th 2014, 7:55 PM

    It will be ordinary joe soap who will end paying for these bad decisions. The Irish tax payer is always good for paying up..didn’t we bail the banks out and look at how they treat their customers. Then we bailed out the developers who were just plain greedy. And now we have bloody Irish Water with their gold plated salaries, bonus’s and last but not least the pensions.

    35
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    Mute D
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    Jan 27th 2014, 8:26 PM

    Given the formation of Irish water and the transfer of responsibilities from the councils will the County Managers be asked to take a pay cut?
    Will some councils be merged and some of them made redundant?

    33
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    Mute Mickey finn
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    Jan 27th 2014, 7:42 PM

    I’ll whine till it makes business sense. Bury the power cable and I’ll gladly waste €100 a year. Have 2300 people been paid to do nothing is a reason to whinge over €100 wasted

    32
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    Mute Eric De Red
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    Jan 27th 2014, 8:20 PM

    What mistake?

    A mistake would imply that those making the decisions were unaware of the consequences.

    Not so in the public sector. Jobs for the boys and squander aplenty.

    30
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    Mute Con Ó Domhnaill
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    Jan 27th 2014, 8:55 PM

    Punish Fine Fail & Labour, the water metering parties in the European and Local Elections on May 23rd. Wipe them out!

    26
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    Mute Dave Fingleton
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    Jan 27th 2014, 8:47 PM

    Not the first time Pat Rabbitte and his department has been called out for telling porkie pies… Eirgrids grid 25 plan not connected to his friends the wind developers big plans for export projects??? you couldn’t believe the radio in his car after a whopper like that…

    25
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    Mute Fran Rooney
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    Jan 27th 2014, 9:11 PM

    The charity gig is up so the political parasites need some other animal to feast off. Irish water will do nicely.

    25
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    Mute Mary Griffin
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    Jan 27th 2014, 7:57 PM

    Where has Ryan been holed up for the past years? He says ‘You know the Government is getting things wrong when they start blaming others for the mistakes they themselves made’. Talk about stating the feckin obvious.

    24
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    Mute Des Martin
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    Jan 27th 2014, 7:59 PM

    Irish water…drown them all

    23
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    Mute One-Off Ireland
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    Jan 27th 2014, 7:42 PM

    insert any whine about any issue whatsoever below

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    Mute Just Some Guy
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    Jan 27th 2014, 7:36 PM

    And let the whinging begin.

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    Mute One-Off Ireland
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    Jan 27th 2014, 8:46 PM

    See below

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    Mute Debbie Fahey
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    Jan 27th 2014, 9:24 PM

    I’m looking, but I can only see the ‘Add New Comment’ box

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    Mute One-Off Ireland
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    Jan 27th 2014, 9:28 PM

    Ok see above. Comments move around.

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    Mute Tom Newell
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    Jan 28th 2014, 3:38 PM

    let the know it all ass kissing political lovers make pointless comments above^^^^^^

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    Mute George Tómas Bradán
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    Jan 27th 2014, 11:34 PM

    Here we go again,irish water rushed thru dail before christmas.What is this goverment doing,e,g local property tax promised by minister phil hogan on T V 2 stay n local councils. instead money used 2 set up irish water.he has lied 2 the people again.they will say anything.they all have lied and promised and did nothing.Enda kenny michael noonan, pat rabbite,brian hayes,eammon gilmore,and most of fine gael have lied and hoodwinked our people.Shame on you.Wait until local elections.we the people have long memories.

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    Mute Martin Grehan
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    Jan 28th 2014, 1:36 PM

    When the Green Party return to power I’ve full confidence this will be sorted…John Gormless for Europe!

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