Batt O'Keeffe (Cork South Central, Fianna Fail)

I thank Deputy Sherlock for raising this issue and giving me the opportunity to clarify the position. My Department's water services investment programme 2004 to 2006, published in May 2004, includes funding for 97 schemes throughout County Cork. As a Corkman, I am proud that the entire county will benefit from the Government's extensive investment in new infrastructure under the national development plan. In total, almost €543 million has been allocated under the water services programme for new water and sewerage schemes in Cork.

The Doneraile sewerage scheme was approved for funding as part of this package. The scheme consists of a new waste water treatment plant and sewage collection system and will cost more than €2.5 million. The waste water treatment plant for Doneraile will be procured as part of a grouped contract that will also include new treatment plants for Buttevant and Kilbrin. My Department is examining Cork County Council's tender documents for this contract. Although they were only submitted in recent weeks, the Department expects to be in a position to convey a decision to the council shortly. I assure Deputy Sherlock that I am just as anxious as he is to see approval being given to the council to commence work on this scheme at the earliest possible date.

The collection system for the Doneraile scheme is advanced as a separate stand-alone contract. Construction commenced in November 2004 on this element of the scheme. It does not extend to Skaghardgannon, and I understand it is close to completion. My Department has approved Cork County Council's proposals to add two sewer extensions to the Doneraile scheme, one from Turnpike Cross to Skaghardgannon on which Deputy Sherlock raised this issue, and the second from the industrial zoned area north of Turnpike Cross to Brough Cross.

The Department indicated to the council that it is willing to fund both extensions in accordance with the terms of the serviced land initiative. Under this measure the Department provides 40% of the capital funding for approved works on the basis that they will contribute to the supply of serviced residential sites and thus increase the availability of new houses for prospective purchasers. In putting forward this proposal, my Department saw an opportunity to provide waste water facilities for existing residents in conjunction with the provision of services to respond to the high potential for future residential development along both sewer lengths and, in addition, the existence of an industrial zoned area along the Turnpike Cross-Brough Cross branch that would also be connected.

Without the other development, both sewer extensions would serve no more than 30 existing houses at an estimated cost of approximately €600,000. The resulting average cost per house would be prohibitive and would not be justified on economic grounds by comparison with the cost of a proprietary single house treatment system that an individual householder could install to replace a malfunctioning septic tank.

The idea of funding the proposed sewer extensions under the terms of the serviced land initiative was put forward by my Department to try to find a way to help the householders involved. It would allow the householders to benefit from services that would be put in place with part-funding from my Department to serve potential new development in the area. If Cork County Council is interested in proceeding with this option, my Department is still prepared to meet 40% of the approved costs. The remainder would need to be recouped by the council from developers, including any borrowing costs the council might incur on its investment in the meantime.

Another alternative the council could consider would be to fund the sewer extension to Skaghardgannon from the annual rural water programme allocation it receives from my Department. Cork County Council has a total allocation of €2.4 million under this programme for small public schemes in 2005 and will benefit from further allocations in the years ahead. The council has complete discretion with the prioritisation of individual schemes under this measure and any decision to fund the Skaghardgannon extension would be entirely within its own remit. A number of options are open to Cork County Council. To a large extent the solution is dependent on Cork County Council, and the Department is prepared to co-operate in any way possible.

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