Oireachtas Joint and Select Committees

Thursday, 21 November 2019

Public Accounts Committee

Business of Committee

9:00 am

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein) | Oireachtas source

I want to raise the global valuation of Irish Water because it has created significant problems for some local authorities, including Dublin City Council, Fingal County Council and Waterford City and County Council, which is proportionately the hardest hit. Through no fault of their own some of these local authorities have found themselves significantly short-changed. Local authorities in Dublin, Waterford and a couple of others happened to have the revaluation process when Irish Water was established. Prior to this, I understand most, if not all, local authorities had a nominal charge on rates because it was just money in and money out for them. Taking Waterford as an example of a revaluation of the rates done after Irish Water was established, the contribution from Irish Water was €4.7 million. It was paid in the first year and then, because of the difficulties with Irish Water, it stopped paying the rates and compensation was paid by the Department of Public Expenditure and Reform. Each local authority has received this until now.

The Water Services Act was amended in 2017 to allow Irish Water to pay rates again. Because of the global valuation, which is not based on the infrastructure in any local authority area but on population, some local authorities have been hit with massive reductions, such as €8 million in Dublin and €3.3 million in Waterford. Through no fault of their own, they now have to take an axe to cut services or increase rates.

When the revaluation was done in all local authorities, there were some winners and losers. The pot of money remained the same but that is eaten bread and it has been forgotten. What is now happening is that ratepayers and those using local services are being affected. This is quite a serious issue. Dublin City Council cannot pass its budget and something similar will happen in Waterford. There are ongoing discussions with the Department of Housing, Planning and Local Government.

We should go back to the Departments of Public Expenditure and Reform and Housing, Planning and Local Government to ask about the history of this and how it came about. Some authorities, through no fault of their own, just happened to go through the revaluation process at the time. Waterford City and County Council was given the figure of €4.7 million and did not come up with it. It was built into their income over seven years and taken away from them with all of the consequences of that. Dublin City Council's proposed budget included an increase in rents on local authority tenants and an increase on toll charges and rates. This will have an impact on a lot of people. It is not the case with every local authority and, in fact, some local authorities gained. Some were winners and others losers. For those who are losers it is not their fault but they are taking a hit. The Comptroller and Auditor General does not audit local government but do we audit Irish Water?

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