Catherine Murphy (Kildare North, Independent) | Oireachtas source

I asked a number of questions which were not answered. I asked about the general Government deficit. Any money collected in water and wastewater charges in local authorities prior to 2013 is being accumulated for transfer to Irish Water. Local authorities are only allowed to spend development contributions collected in the same year. For example, money collected in 2014 can only be spent in that year. Prior to that local authorities were not allowed to spend money because the general Government deficit figure had to be maintained. When this money is transferred to Irish Water, will it form part of the general Government deficit?

If development contributions are collected in Waterford, they will be paid into the Central Fund. There was a legal obligation to spend the moneys raised in the area for the purpose for which they had been collected. If they are paid into a general fund, there will be a question mark over the legality of this. If the money is not spent for the purposes for which it was collected and not spent within seven years, there is a requirement to return the development contributions to the person who paid them. That has been standard practice for a long time. If one is connected to a public supply, one has always paid for it.

Most people did not realise they paid, because it was part of the cost of their house. Often, it was a large amount of money, which would have been part of their mortgage. Therefore, the notion that people have not paid is wrong. All of the capital moneys that have been provided for the upgrading of treatment plants has come from the development contributions. There is little certainty in regard to how Irish Water will handle this issue in the future. I have not heard anything that indicates to me how it will be handled. I presume, based on the Minister of State's contribution, that the amendment is not going to be accepted.

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