The minister who set up Irish Water has said there are "forces" within the Department of the Environment who want to privatise the water network.

Fergus O'Dowd said there was good reason to be concerned about the possibility of Irish Water being sold to private hands.

The Fine Gael TD made his comments in the Dáil in the early hours of the morning, as TDs debated the Water Services Bill.

"We have reason to be concerned," he said. "I am convinced there are other forces at work here - not necessarily political forces - that are active and they do have an influence."

He said he wanted a ban on privatisation to be included in previous legislation, but that proposal was deleted.