Oireachtas Joint and Select Committees
Wednesday, 15 November 2017
Joint Oireachtas Committee on Housing, Planning and Local Government
Review of Estimates for Public Services 2017: Vote 34 - Housing, Planning and Local Government
10:30 am
Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source
To answer Deputy Cowen, I have been engaging with the National Federation of Group Water Schemes since I took office and I am aware of the challenges they face. I am aware of how the excellent work they have done over many years in communities up and down the country was, perhaps, lost in the whole debate we have had on Irish Water and water generally in recent years. When water charges for domestic customers of Irish Water were suspended, the group water schemes went back to their pre-2015 subsidy levels. Engagement has already begun on a semi-formal basis with the federation as to how we make up for the difference during the period of time when we suspended the provision of the money. We will formalise our engagement once the Bill comes out of the House so we can ensure we make up any money that was lost as a result of the suspension of the scheme but also that we look at the equity of treatment, to which the Deputy referred, which is also in the joint committee's report. That work will begin next week or the week after, once the Bill comes out of the Seanad. We spend approximately €20 million on the subsidies, but another €1 million to €1.5 million, or a little higher, will be the cost of bringing the subsidies up to previous levels given the changes being made as a result of the Water Services Bill.
The Vote next year will cover Irish Water's obligations under the service level agreements, SLAs, with the local authorities. Next year will look a lot different because of the changes we will make on motor tax, the local property tax and the local government fund. There will be a much clearer funding stream into Irish Water so it will be easier to navigate in so far as the accounts are concerned. As per the commitment I gave on Committee and Report Stages of the Water Services Bill, we are trying to expedite consideration with the Minister for Finance on the role of the Comptroller and Auditor General to give us greater oversight of the audited accounts of Irish Water. There is obviously a role here for the Commission of Regulation of Utilities, CRU, in terms of regulating and overseeing the costs incurred, even with the SLAs entered into with local authorities. If a new agreement is reached, in so far as 2021 is concerned, the saving anticipated at present is approximately €1 billion. It is not intended to impact service delivery. It is intended to improve service delivery from the economies that can be achieved by doing this at an earlier timeframe.
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