Alan Kelly (Tipperary North, Labour) | Oireachtas source

A key component of the strategy to establish Irish Water is that the utility 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 Central Statistics Office is responsible for all engagement with EUROSTAT on such matters, and the Department has engaged with this office and has provided the necessary information to facilitate this work. As the Deputy is well aware, because we have discussed it numerous times in the Chamber, they are independent bodies which do their work independently of Departments. The CSO has confirmed it has submitted a classification proposal on Irish Water to EUROSTAT and that the proposal envisages Irish Water being classified outside the general government sector. The CSO has further stated this is a closed process and that it is awaiting the final adjudication by EUROSTAT. When EUROSTAT will announce its decision is a matter for EUROSTAT.

The Government is confident 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 substance and timing of the decision on the classification of Irish Water will be made by EUROSTAT alone. It is not for me to state when it will do so. I expect it will not be too long into the future.

As the Deputy is well aware, Irish Water's first quarterly billing cycle has been completed. The utility has indicated it is satisfied with the rate of revenue collection to date and a very significant level of engagement with customers is continuing.

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