Oireachtas Joint and Select Committees

Tuesday, 5 July 2016

Select Committee on Housing, Planning and Local Government

Water Services (Amendment) Bill 2016: Committee Stage

2:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I move amendment No. 2:

In page 3, to delete lines 16 to 26 and substitute the following:“ “(1A) (a) Notwithstanding section 21(1) of the No. 2 Act of 2013, Irish Water shall not charge for water services provided to a dwelling in respect of the period (in this subsection referred to as the ‘first-mentioned period’) commencing on 1 July 2016 and ending on 31 March 2017.".

My understanding is amendment Nos. 2 and 4 are being discussed together, or at least considered together. I hope amendment No. 2 will deal with the concerns expressed by Deputy Barry Cowen in amendment No. 4. I will speak to my amendment first. I propose to discuss amendments Nos. 2 and 4 together.

I indicated on Second Stage that I would bring forward amendments to deal with concerns that had been raised with me by members of the Opposition about the time lag between Irish Water's charging and billing periods. The amendments seek to bring clarity and leave no doubt on the periods in which charges are to be suspended. Amendment No. 2 seeks to align the period of suspension of water charging with the billing periods. While the Bill provides for charging to be suspended from 1 April to 31 December 2016, the amendment aligns the period of suspension of water charging with the billing period. Charging will be suspended from 1 July 2016 to 31 March 2017 and no water bills will be issued in this period. I hope the amendment will allay concerns that liability for domestic water charges may be reintroduced before the finalisation of the deliberative processes and Oireachtas decisions on the future funding model for domestic water services.

It was always the Government's intention to ensure there would no possibility of customers being asked to pay water bills until the Oireachtas had considered and voted on how domestic water services delivered by Irish Water would be funded into the future. The amendment clarifies my intentions in this regard. The nine-month period is an honest attempt by the Government to create the space in which a detailed and respectful debate on the funding of water services can take place. We need to allow the expert commission, the membership of which I announced last week, to make recommendations, a special Oireachtas committee to examine the expert commission's recommendations and endeavour to make its own and the Oireachtas to deliberate on these recommendations and, ultimately, make a final decision on the floor of the Dáil. I am facilitating this period of extensive deliberation without the distraction of either charging or billing for domestic water services by Irish Water.

Let me be clear - the amendment will ensure two things. First, no liability shall be created for water charges in the nine-month period from 1 July 2016 to 31 March 2017 or in any extension of the period of suspension. Second, no bill in respect of this period shall issue during the aforementioned nine-month period or at any stage in the future. The amendment will ensure no liability for water charges will recommence before the Oireachtas has considered and voted on the enduring funding model for domestic public water services. While a liability for the charging period of quarter 2 of 2016 - 1 April to 30 June 2016 - remains, the liability in the following quarter - quarter 3 of 2016 - will not be billed by Irish Water during the suspension period of 1 July 2016 to 31 March 2017 or any further extension of that suspension period. The liability for quarter 2 of 2016 will remain to be discharged at a future date after the period of suspension of water charges has ended.

The amendment will ensure that the deliberative process proceeds unimpeded by bills issuing from Irish Water.

Amendment No. 4 was tabled by Deputy Cowen. It has the same intent as the Government amendment No. 2, that is to amend the proposed suspension period to a period commencing on 1 July 2016 and ending on March 31 2017. I hope the Deputy will accept the amendment that I have brought forward, which will ensure the same change as that intended in amendment No. 4.

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