Alan Kelly (Tipperary North, Labour) | Oireachtas source

I thank the Deputy for his question. 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 support, be included in the calculation of the general Government balance.

The CSO is independent and is responsible for engagement with EUROSTAT on such matters. Officials from my Department have met officials from that office and have provided the necessary information to facilitate this work. Early engagement with that office by my Department centred on understanding the rules by which a utility such as Irish Water would be considered a market corporation. I went into that in great detail. 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 absolutely confident that Irish Water will pass the market corporation test. However, as it is independent, this is ultimately a matter for EUROSTAT. The CSO has confirmed that a classification proposal on Irish Water is currently with EUROSTAT. The CSO has further stated that this is a closed process and that it is awaiting EUROSTAT’s final adjudication, which I expect in a couple of months.

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