Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for the reply. He stated providing tax relief at source would result in Irish Water failing the market corporation test. That is the issue on which we need clarity. The €533 million to be provided next year from the local government fund will be accounted for in the general Government balance and thus will be on the balance sheet of the State. Is it the Government's intention that Irish Water will be off balance sheet in 2015? To achieve this, what level of revenue does Irish Water need to generate from domestic and non-domestic customers to pass the test?

Providing tax relief at source would have a number of benefits. People would receive the benefit upfront and it would avoid them having to go to the hassle of submitting tax returns. If those who will pay water charges in 2015 must submit a claim the following year, they would not receive the full benefit of the tax relief until the full following year.

The main issue is the market corporation test. Will the Minister explain the Government's position on it? What level of revenue does Irish Water needed to raise from domestic and non-domestic customers next year to pass the test and remain off balance sheet?

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