Dáil debates

Wednesday, 16 October 2013

Financial Resolutions 2014 - Financial Resolution No. 8: General (Resumed)

 

3:05 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael) | Oireachtas source

In the Department of the Environment, Community and Local Government one of the significant changes that has taken place is the question of how we deal with our water and water infrastructure. The responsibility for public water supply and waste water, currently with local authorities, will pass to Irish Water from 1 January 2014. Irish Water will have a general duty to provide safe and efficient water services and infrastructure in a manner which takes full account of public policy regarding proper planning and sustainable development. The water sector reform programme will ensure more cost-effective and efficient water services delivery based on the user pays principle and fairness, guaranteeing security of quality water supply for the future for the public and for our economy.

Capital funding of Irish Water will be by way of direct Exchequer equity investment of €240 million. It will support projects set out in the Irish Water capital investment plan, including some 80 projects currently in progress, and will ensure that the new utility will be in a position to take on the water services investment programmes of the current 34 water services authorities. Economic regulation of water and waste water services will commence following enactment of the Water Services (No. 2) Bill 2013, to be published shortly. The Commission for Energy Regulation, CER, will scrutinise and regulate Irish Water's operational and capital expenditure. CER will also ensure consumer interests are protected in the sector. Public consultation will form an essential part of the regulator's decision making.

Domestic water charging will be introduced in quarter four of 2014 with first bills due in quarter one of 2015. A free allowance will be allocated to each household, with supports provided to those with affordability issues and those with high water usage necessitated by medical needs. Substantial progress has been made and work will accelerate through 2014 on the ambitious metering programme. Domestic water charging will begin towards the end of next year based on metered usage. The rural water programme will continue to be administered by the Department and will fund the progression of water services projects in the private and group water sector.

One of the key benefits of this budget is that it is very strong on family-friendly measures. In particular, child benefit and class sizes are protected. There is free GP care for children aged five and under. These are very important and significant developments and retentions of existing benefits in this most difficult time. Budget 2014 will protect middle and lower income families. The free GP care for children aged five and under is a very important, significant development and a significant boost to families with young children. This budget will particularly help the families I spoke about. Despite significant economic pressure, we have protected child benefit and class sizes because we need to prioritise young people and their education.

This Government is committed to the delivery of universal health insurance and the roll-out of free GP care to all children under five is a key component of this. Before today's announcement, 43% of Irish people were covered by free GP care. This is more than at any stage in the history of the State. The home renovation tax incentive scheme will mean people will get a VAT refund of 13.5% on extensions and renovations to their homes. The VAT will be returned on amounts over €5,000 and under €30,000. This will enable people to make significant improvements to their family homes and generate employment for people in the hard hit construction sector.

The majority of people, when they open their first pay check in January to pay for their first grocery bill, fill up their car with petrol or diesel to go to work or eat out at a local restaurant, will see no change as a result of this budget. Budget 2014 is about giving taxpayers something back for the money they provide to run the State. Middle and lower income families are the backbone of our society and our economy and it is only right that, despite current constraints, the State can provide these families with vital services.

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