Ann Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

I certainly understand the Deputy's frustrations, in particular when those who are willing to pay for water cannot get it while those who have water do not want to pay for it. I understand her concerns in regard to CLÁR funding and how precious CLÁR funding was for people who live in disadvantaged areas. I am taking this Topical Issue matter on behalf of the Minister for the Environment, Community and Local Government, Deputy Alan Kelly, but I assure the Deputy I understand exactly the type of schemes she speaks of.

Between 2000 and the end of 2014, my Department, under the rural water programme administered by the local authorities, provided almost €800 million towards the capital costs of improving existing group water schemes and the provision of new group water schemes. This is evidence of how the group water sector is valued by the State. I am glad to say this investment is continuing and that, this year, a further €14 million has been notified to local authorities by way of block grant allocations under the rural water programme for group water and group sewerage schemes.

The Minister and I are well aware of the difficulties in setting up some new group water schemes where the financial viability of the scheme is questionable. The national rural water services committee, which has a role in advising the Minister in regard to policy and investment in rural water services, has been considering issues relating to the establishment of new group water schemes and the financial viability of same. Following a recommendation by the committee, an increase of €1,000 in the maximum grant per house applying to new group water schemes was announced in April 2014. My Department now funds 85% of the cost of such schemes, subject to a maximum grant per household of more than €7,000, rather than the previous limit of €6,500 to which the Deputy referred in the context of the difficulties that exist around the shortfall.

That committee also considered whether some elements of the proposed new group schemes would merit a special contribution to help address funding shortfalls, especially where such schemes incurred significant verifiable expenditure prior to the cessation of funding for group water schemes under CLÁR, on the understanding that CLÁR funding would be forthcoming. The Minister announced in May last that he had accepted the committee's recommendation and that he wanted to find a funding mechanism to facilitate the progression of proposed new group water schemes which are not viable at current grant rates. My Department has been liaising with Mayo County Council and Galway County Council in regard to examining the feasibility of the committee's recommendation for appropriate schemes in these areas on a pilot basis. Submissions from both councils are being actively considered in this regard.

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