Bernard and Rosemary Walsh, founders of Walsh Whiskey Distillery

This morning KLCR 96FM reported that Walsh Whiskey Distillery in Royal Oak, Co. Carlow – which is set to open in January 2016 – has received a bill for €500,000 from Irish Water, out of the blue.

Renua candidate for the by-election in Carlow-Kilkenny on May 22, Patrick McKee, and founder of Walsh Whiskey Bernard Walsh spoke to John Masterson, of KLCR 96FM about the matter this morning.

This is what was said:

Cllr Patrick McKee: “Essentially, what we have here, is an indigenous business based in Carlow, that’s undertaken a multi-million investment in Carlow, and it’s hoping to create 55 permanent jobs and 70 construction jobs. The company is in the middle of building the first whiskey distillery in the south east in 200 years at the Royal Oak, near Bagnelstown and is aiming to commence in January next year. Thankfully the demand doesn’t affect the viability of the organisation..”

John Masterson: “So the business is going ahead?”

McKee: “Absolutely. But it does highlight the significant difficulties companies, who want to create employment, are facing when dealing with semi State structures, including Irish Water. I mean to demand half a million euros from a new company, essentially, is piggy-backing on a private enterprise to seek investment for public infrastructure. It’s totally unacceptable. I mean the company had been given the licence by Carlow County Council. When Irish Water took over, they’re simply trying to renege on that and it’s totally unacceptable.”

Masterson: “So the company had gone through all the normal hoops, they had filled out the forms, they had sought their permission before they decided to go ahead with this important investment?”

McKee: “Absolutely. In 2013, Walsh’s Whiskey was granted a licence, by Carlow County Council, as I said, to allow the distillery to put their by-product, their by-product to be sent to the [wastewater] processing plant in Bagnelstown, once distilling commenced, as I said, in January 2016. Now as we now, authority for such matters has transferred to Irish Water and Irish Water is now, is failing to honour that licence. And it’s also retrospectively changing the rules and demanding Irish whiskey, as I said a young company, a new company – with huge potential – to develop an industry in this constituency in Carlow, and in Kilkenny and the wider region, to pay half a million euro, to upgrade the processing plant in Bagnelstown and I’m going to say this very clearly: it’s nothing short of extortion and I’m calling on the Minister for the Environment Alan Kelly to reign in Irish Water who are counter demanding the decision by Carlow County Council. It’s scandalous, it highlights how out of touch Irish Water is…”

Later

Masterson: “That must have come as something of a shock to you? How did it happen to you that you were told that you had to essentially come up with half a million euros that you hadn’t planned for?”

Bernard Walsh: “Yes, it came left of field because we got our licence in 2013 and got a call this year to go in and meet them. So it was totally left field. Maybe just to give you a bit of background. Patrick talked about the by-product. Most, apart from the whiskey that we produce, the by-product from the distillery is sent, drained pot ale and that goes back into agriculture as animal feed. But there are small waste drains such as wastewater from cleaning out our pots and the system there, etc. And that goes through to, as wastewater to be treated in the Bagnelstown plant. And we knew in 2013 that there was no point in looking at Carlow and Bagnelstown if the plant couldn’t facilitate us. We had other options. So we applied, as anybody would apply, in Carlow and we got our licence. So that, effectively, meant we could proceed with the site in Royal Oak, subject to planning permission which we duly got. So, you know, we did everything by the book. And then, I suppose, to find out now, you know we’re really only months away from completing construction that we’ve actually got to pay this extra wedge of money – all because Irish Water are saying the plant is now no longer able to take extra wastewater.”

Masterson: “Ok, but they would have known that at the time. On top of that you that, you have to pay an annual fee for the treatment of your by-product water, is that right?”

Walsh: “Exactly, you know, it’s only fair that we, and all users of the treatment plant, pay for the waste treatment and we’ll be paying daily, hourly, you know, weekly, monthly charges for that and that’s what makes the plant viable.”

Masterson: “But you’re happy with that, are you Bernard? It’s this 500 [thousand euros] that’s come out of, as you said, left field that you’re unhappy with?”

Walsh: “Listen, we’re an existing licence user like any of the other licence users in the greater Bagnelstown area and if, and of course we have to pay for the use of the plant and we do and that’s normal business but to pay for infrastructure we know maybe the plant needs to be upgraded now, that’s what we’re hearing from Irish Water but we shouldn’t be penalised. We’re an existing customer and if they want to penalise customers then allocate it clearly across all customers across the region.”

Listen to interview back here (in Part One)

Pic: Licensing World

H/T: Eimear Ní Bhraonáin