Alan Kelly (Tipperary North, Labour) | Oireachtas source

A key component of the strategy to establish Irish Water is that Irish Water will be classified as a market corporation under EUROSTAT rules and, as a result, will not, other than in relation to Government operating subvention, be included in the calculation of the general Government balance. The market corporation test is a requirement that income from customers be greater than 50% of production costs. The Central Statistics Office is responsible, as the Deputy is aware, for engagement with EUROSTAT on such matters. My Department has met with that office, which is independent, and is providing the necessary information to facilitate this work. Early engagement with that office by my Department centred around understanding the rules by which a utility such as Irish Water would be considered a market corporation. Based on this understanding, the Government is confident that the underlying funding model for Irish Water supports increased investment in the water sector through an off-balance-sheet classification of the utility while, at the same time, providing for water charges which are affordable, clear and certain. The Government remains confident that Irish Water will pass the market corporation test, MCT. However, the decision, based on the information we are providing through the CSO and onto EUROSTAT, is a matter for EUROSTAT. It is my understanding, as outlined earlier, that a decision will be made in or about April.

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