Michael Kitt (Galway East, Fianna Fail)

I welcome the opportunity to contribute to this debate on the economy. This is a challenging time with difficult national and international economic circumstances and priority must be given to ensuring economic and environmental sustainability.

I very much welcome what the Taoiseach said about stability in the economy and continuing the capital programme, which is important regarding those projects we all want to see come to fruition and also in terms of employment. The Taoiseach has stated that there is a five-year timeframe for this recovery programme.

The Department of the Environment, Heritage and Local Government is concentrating on expenditure on social housing and protecting the most vulnerable, while also investing in environmental protection in terms of water, waste management and local services. As my colleague, the Minister, Deputy Gormley, has contributed already to the debate on those issues, I will use my time to focus on the areas in which I have responsibility, namely, the rural water programme and local services.

At a time of national and economic recovery the funding provisions for the continuance of the rural water programme and maintaining the development of our fire and library services reflects continued Government support for these important programmes and the contribution they can make to economic stability. An integral part of the investment programme for water services in 2009 is the continued improvement and development of the rural water programme. The record allocation for 2009 will further advance our commitment to make good quality drinking water available to all rural water consumers, in full compliance with national and EU drinking water standards.

The main focus of my Department's rural water programme in recent years has been on solving water quality problems experienced by group water schemes that depend on private sources such as rivers, lakes and boreholes, and are without proper water treatment and disinfection. Some 728 such schemes serving over 88,000 domestic connections have been identified as falling within the remit of the drinking water regulations on the basis that they serve 50 or more persons.

At the end of 2008, improvement works had been completed on 570 of these schemes, with the result that over 73,000 households are now receiving a quality water supply. The Rural Water Programme 2009 will focus on completing this upgrading programme. The objective is to have the supplies serving 98% of households fully compliant with drinking water standards by the end of the year. As of today, works are under way on 62 of the remaining schemes with the balance of 96 expected to commence construction in 2009. The record funding for water services in this year will ensure that these schemes are brought to completion in the shortest possible time.

The rural water programme has been supported by Exchequer spending of some €698 million over the last five years. This substantial commitment, coupled with the positive co-operation and enthusiasm of everyone involved in the group water scheme sector, has guaranteed and underpinned the successful delivery of the upgrading programme. In June 2008, I announced significant increases in the subsidies payable to group water schemes towards the operational costs incurred in providing water for domestic use. The standard annual rates of subsidy were increased by over 36% and a new line of subsidy was introduced to cover the cost of paying a contractor to operate and maintain the new water treatment plants being put in place under the upgrading programme.

The Water Services Act 2007 provides for the introduction of a licensing system to regulate and develop the operations of the group water sector. My Department consulted widely with the sector when the Bill was being drafted and groups have given their full support to the licensing system.

Licensing will put the group scheme sector on a much more organised and business-like footing for the future. They will also benefit from major capital funding from my Department for new treatment infrastructure under the rural water programme from the record €560 million for water services in 2009. Along with the new subsidies to meet running costs, the long-term viability of these community endeavours has never been as secure or as well supported financially.

Fire and emergency services are operated at local level by 37 fire authorities. My Department recognises the importance of a modern and efficient fire service to the community and strongly supports the valuable work being done on the development of both the full-time and retained fire service. The significant improvements achieved in recent years in all areas of the fire service were further built on during 2008. The Department's programmes in 2008 brought about marked improvements in infrastructure and equipment, further enhanced inter-agency co-operation and promoted the all-important fire safety message.

Last year saw the continuation of significant investment, almost €24 million, under the fire service capital programme. The programme continued to support local fire authorities in the development and maintenance of a quality fire fighting service. Seven fire station projects were completed across the country and a further four fire stations commenced construction. In addition, 25 fire appliances were delivered to fire authorities and a range of emergency equipment was purchased. This sustained investment means that the fire authorities are well equipped to address the full range of risks with which they must now deal.

I am pleased the Government is to maintain the high level of support for the fire and emergency services. As in previous years, a joint fire safety promotion initiative will be undertaken in co-operation with colleagues in the Northern Ireland fire service.

I am pleased, despite the severe economic difficulties we face, that the Government's commitment to the development of the fire services, and growth of the rural water programme, will continue this year. I believe the measures the Government has taken and the difficult decisions that have been made in these most challenging of circumstances will protect the public finances while at the same time ensure that environmental and economic sustainability and protecting the most vulnerable in our society.

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