Jerry Cowley (Mayo, Independent)
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I am grateful for the opportunity to raise this important matter. This is a sad story of neglect and the failure by the Government to give a sewerage scheme to Achill Sound. This has gone on since 1991. Although that project was supposed to have been introduced 15 years ago, not a spade has been put in the ground. That is a disgrace. I wish the Leas-Cheann Comhairle could experience the colour of the sand and the smell. Raw sewage goes out to a sheltered bay. It is a disgrace that this can happen today. Where is the EU responsibility of Government to deliver on this issue and build a treatment plant?

The difficulty is that the polluter pays principle is now kicking in for a scheme that should have been put in place in 1991. As a result of this principle, the community is being asked for a contribution it cannot give. This community is treated as if it were on O'Connell Street with lots of footfall, enterprise and business. However, because the community has been neglected, there is no potential to satisfy the contribution required under the polluter pays principle. The principle has dealt a fatal blow to any chance of stopping this raw sewage from going into Achill Sound. I have asked about this before. Some sort of hardship clause must be invoked. There is provision for such a clause. Will the Minister examine this? The polluter pays principle works for an area that has the economic potential to repay through housing levies and water charges on commercial premises. The Government is playing a blame game even though the Council has made some effort. A scheme worth €8.9 million was approved and sanctioned in June 2005 and went out to tender. A massive local contribution of at least €4.5 million was required but could not be paid. As a result, the Department asked that the scheme be reduced so that the local contribution would be smaller.

The scheme has been downgraded to cater for a population of 1,200 instead of the original 2,000. Some areas, such as houses on the Mulranney road and Bull's Mouth road, have been removed from the scheme. This change has reduced the cost to some €6.3 million. However, the council maintains that its contribution should be 19% while the Department suggests 38% is required. This is calculated on the basis of an area that has pipes and a collection system. Achill Sound is unique in that it has no treatment system because it has been grossly neglected. At the price of €6.3 million the Department wants Mayo County Council to pay €2.4 million marginal cost, equivalent to 38%. The local contribution should be €1.2 million or 19%.

Today we heard the IDA has failed miserably to create jobs in Mayo. I ask the Minister of State to address this urgently.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The national water services pricing policy framework provides for the recovery by sanitary authorities of the cost of providing water services from the users of those services, with the exception of water services provided to householders for domestic purposes. This policy is consistent with the polluter pays principle and the EU water framework directive. The policy fully respects the prohibition on charging for domestic water services as provided under the Local Government (Financial Provisions) Act 1997. It also requires full recovery of the cost of providing water services to the non-domestic sector by means of a meter-based volumetric charge and the metering of this sector.

The major part of the capital cost element of water services schemes relates to domestic water services and is funded by my Department through the water services investment programme. The marginal capital costs are recovered from non-domestic users on a consolidated countywide basis over a period of up to 20 years. A fair and transparent mechanism is used in determining the appropriate level of non-domestic capital costs to be applied to water services projects, including sewerage schemes.

This is identified by sanitary authorities on a scheme-by-scheme basis with the methodology used and the resultant outcome closely monitored by my Department to ensure equity in the application of the policy. My Department has worked very closely with sanitary authorities in developing the charging mechanism and the conditions that apply to pricing policy. A mechanism for the calculation of charges that includes operational, marginal capital and administrative costs has been developed and rolled out to authorities. The unit cost of water services will invariably differ between sanitary authorities given the differences in the costs of water services provision across different local authority areas.

The Achill Sound sewerage scheme referred to by the Deputy has been approved for construction under my Department's water services investment programme 2005-07. In common with all projects funded under the programme, this scheme must be progressed consistently with the water services pricing policy. Local authorities must ensure the design and scale of individual schemes takes account of the implications of the pricing policy framework. This involves my Department funding the capital costs associated with the provision of services to meet the requirements of the existing domestic population together with a contribution of up to 40% for serving the additional future domestic population.

Jerry Cowley (Mayo, Independent)
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It cannot be done. The money is not available.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The remaining marginal capital cost of servicing non-domestic consumers and providing for future development is recovered by the local authority from all non-domestic consumers in its functional area on a countywide basis through a combination of water charges on commercial consumers and planning levies on future development.

Only significant largescale consumers who reserve a specific proportion of the overall capacity of a scheme are required to make a direct up-front contribution to the capital costs. I understand it is unlikely there are any such consumers in this case. My Department has advised Mayo County Council of aspects of the council's proposals that need to be reviewed to allow the appropriate non-domestic capital contribution to be determined. My Department has previously approved the council's tender recommendation for the scheme and the council is currently reviewing the scheme with a view to reducing the overall cost to a more economic level.

Jerry Cowley (Mayo, Independent)
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It should be 19%.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I am conscious of the importance of the Achill Sound scheme and met a representative, Councillor Murray, who I assured of the importance of this scheme. Any submission from the council will be dealt with as a matter of urgency on receipt in my Department.