Dick Roche (Wicklow, Fianna Fail)

I thank the Deputy for raising this interesting issue. Water metering has been widely abused by people who oppose logic. It is a positive thing. The national water services pricing policy framework provides for the recovery by sanitary authorities of the cost of providing water services from the users of those services, with the exception of householders, and the latter point raised by Deputy Devins is interesting in that context. This is consistent with the EU water framework directive. The Government's policy fully respects the prohibition on charging for domestic water services as provided under the Local Government (Financial Provisions) Act 1997. As far as I am concerned, that will stand while I am Minister. It also requires full recovery of the cost of providing water services to the non-domestic sector by means of a meter-based volumetric charge and the metering of this sector by December 2006. This policy is being progressively advanced and implemented by local authorities and in general there are positive results from that.

Proper metering of the non-domestic sector is important so that pricing of commercial water can be operated fairly and efficiently. Once fully implemented, the national metering programme will facilitate charging on the basis of the actual usage of water. This will be a transparent, fair and equitable method of recovering water services costs and will provide for the treatment of all non-domestic customers in an even-handed manner. The provision of meters will also support and encourage water conservation. An interesting story came from a group water scheme recently. When water metering was mooted, water consumption dramatically decreased because people were not disposed to wasting water. The provision of water meters will support and encourage water conservation. It is supported by business groups, including IBEC and the chambers of commerce generally, which support the principle of universal non-domestic metering.

Up to now, there has been a moderate level of metering of water services in Ireland with approximately one third of non-domestic customers, usually the more significant users, being charged on a metered basis. Experience in developed countries suggests that much higher coverage of metering is necessary and feasible. A recent OECD report indicated that countries in Europe with 100% metering, domestic and non-domestic, including France, Germany, Austria, Finland, Sweden, Portugal, Poland and Switzerland, had much better conservation results than Ireland.

The national water metering programme, which is at an advanced stage, has been greatly assisted by the co-operation of Sligo County Council and its significant support for the Sligo pilot metering demonstration project. That authority has shown energy and commitment in recognising the need for such a project and in advancing it, and is to be complimented. In 2002 my Department agreed the scope of the pilot demonstration project with Sligo County Council and Sligo Borough Council, with the funding of their client's representative on the project in the sum of €470,000. In the interim this design, build and operate project has developed from planning to implementation phase, which involves meter installation, an operational contract and a billing and collection module. Comprehensive guidance notes have been developed throughout the project. It is important that we have guidance we can use in other local authorities. In this regard three sets of guidance notes have been issued to sanitary authorities and a further final set is planned.

A cornerstone of the policy is that all users are charged in the same way. That is just and equitable. My Department has worked very closely with sanitary authorities in developing the charging mechanism and conditions that apply to pricing policy. Some of the points made by Deputy Devins are interesting in this regard. A mechanism for calculating charges which includes operational, marginal capital and administrative costs has been developed and rolled out to sanitary authorities.

The unit costs of water to users will vary between different local authorities because of differences in the costs of water production. Water users will rightly be sensitised to the particular unit costs operating in their areas by virtue of the more precise system of charging now to be applied. My Department's guidelines make it clear that less efficient local authorities, which do not have effective water conservation programmes in place, will not be able to pass on excess costs to consumers. Sanitary authorities are restricted to recovering a maximum of 20% of the cost of unaccounted for water where they have not developed and set a targeted water conservation programme. That is an important safeguard within the new system and is a common sense measure to ensure that local authorities prevent water wastage. The Sligo pilot metering demonstration project has been a significant driver in the implementation of the national metering programme and in the general implementation of the water services pricing policy and I commend the Sligo local authority for that.

On the final issue raised by Deputy Devins, multiple meter charges, if he gives me details on the case I will examine it. I do not say I can do something about it but the whole idea of metering is that it is just, equitable and reasonable, so if something appears to be unreasonable I will examine it.

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