Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I am glad that Deputy Stanley has clarified that because it is not what I heard earlier, which is on the record of the House. The Deputy and Sinn Féin said they did not agree with the water conservation grant being given to rural dwellers who, as Deputy Ó Cuív quite rightly noted, have installed, maintained, paid for and pumped those wells and septic tanks for many years. Deputy Stanley's words are on the record of the House. He said clearly that he was opposed to that conservation grant. I was very surprised to hear him say it given the fact that he is a rural Deputy but that is what he said.

In respect of Deputy McNamara's earlier comments, I think they referred to a previous amendment that was already agreed but I am happy to clarify that the documentation he referred to is currently specified by means of circulars that were given that we are now underpinning in legislation through the amendment in question. I hope this clarifies matters for the Deputy. We can get further clarification for him if he seeks it.

I want to make it clear that 100% of the local property tax is being given to the local government system in 2015 and is funding essential local services delivered by local authorities. All of the property tax paid into the local government fund will be paid directly to local authorities and will not go to Irish Water, as some have implied here. All of the figures associated with my earlier contribution are published and are part of the Estimates process, which is approved by the House. For years, motor tax, which has been referred to by many Deputies, went to local authorities to fund water services so there is nothing new in that sense. I want to make it clear that none of the local property tax has been paid to Irish Water to subvent it in any way in 2015.

I also wish to clarify matters relating to Irish Water and the local government fund. Historically, the local government fund provided local authorities with finance to fund some of their day-to-day activities, including elements of the costs of water services, through general purpose grant allocations. The total operational costs of providing water services, which is estimated at just under €730 million, were removed from the local government sector in 2014. As a result of the introduction of the local property tax in 2013 and the establishment of Irish Water, the local government funding model has changed considerably. I am addressing some of the points that Deputy Ó Cuív raised. The funding provided to local authorities for the provision of water services from 2014 is governed by service-level agreements between Irish Water and individual authorities. Therefore, the local authorities are no longer in receipt of funding for water services costs directly from the local government fund. Instead, the fund provided a subvention to Irish Water in 2014 of €439 million and it is expected that it will provide up to €399 million in 2015.

The level of State subvention to Irish Water from the fund in 2014 reflected the fact that the costs of operating water services were being met by Irish Water and that there was no revenue at that stage from domestic water charges in 2014 as the first bills would not issue until 2015. Irish Water financed other costs from non-domestic water charge revenues of some €190 million and from borrowing, which was the subject of appropriate ministerial consent. I repeat that 100% of the local property tax revenue is being provided to the local government system in 2015 and is funding essential local services delivered by local authorities in their respective communities. All local property tax paid into the local government fund in 2015 will be paid directly to local authorities and other payments from the fund will met from a combination of motor tax and Exchequer funding. Some €459 million will be paid to local authorities in 2015 in the form of the local property tax allocations. No general purpose grants will be paid in 2015 as this funding line has been replaced by the local property tax allocations. Local property tax allocations for 2016 will be decided by the Government in the context of the Estimates process, which we will debate and which will be approved by the House.

I have addressed many of the questions and clarified some of the issues raised by Deputies. I am happy to respond in my next contribution.

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