Michelle Mulherin (Mayo, Fine Gael)
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I welcome the Minister. Members of every household in the country want clean and safe water when they turn on their taps. I commend the Minister on his ambition for this country that a uniform and satisfactory clean water supply should be available to all houses and businesses regardless of where one lives. The Minister will be aware that currently this is definitely not the case. The disparate quality of water is most marked between urban and rural areas. In some rural areas of Mayo the water coming through the taps is not only unfit for human consumption but in some cases not fit for personal bathing, nor even to use for washing clothes. In most cases the contamination is naturally occurring because of the ground conditions in a particular area and in spite of drilling wells and being resourceful in many ways people cannot get a clean water supply. I have seen red coloration coming through the taps that makes it unsuitable for people to wash their clothes.

This year the Department of the Environment, Community and Local Government allocated €200,000 to Mayo County Council for new group water schemes. However, to date, notwithstanding the fact that communities in Kilmurry, Downpatrick, Ballycastle, Massbrook, Aghalonteen, Carracastle and Furmoyle, comprising 210 houses in total, have been waiting for years for a new group water scheme, the council has not been in a position to spend one red cent of the allocated funding. That is not for want of trying on the part of the council and the communities. The problem is that the estimated cost of each scheme is too high compared to the amount of funding available from the Department. Because of the relatively small number of houses in these far-flung proposed group water schemes in rural areas, the cost of constructing the schemes per household is higher than in more densely populated areas where there are more households to contribute towards the cost of the scheme. Under the current funding rules the county council is only entitled to recoup a maximum of €6,500 per house from the Department. In turn, each household contributes approximately €1,200 towards the cost.

In the case of the six Mayo schemes I have mentioned, it leaves a total funding shortfall of €432,000. Previously, the shortfall was funded through the CLÁR scheme, but since 2008-09 when it was abolished, the problem has become very acute, with no movement or progress on the schemes, notwithstanding the fact that local households have actually paid their contributions. In addition, they paid over €170,000 in consultants' fees to have proposals submitted to the Minister and signed off on. They cannot recoup the money until the schemes go ahead. They are out of pocket with nothing to show for it.

I acknowledge that this is a problem the Minister has inherited, but I ask him to intervene and put in place a solution to allow the long-overdue water schemes to proceed. The communities would have benefited from CLÁR funding in the past because they were identified as areas of rural disadvantage. I ask the Minister to increase the departmental contribution for the former CLÁR-associated disadvantaged areas. At present, it is the same amount per household nationwide, or a sum up to that maximum. The people themselves cannot afford to make up the shortfall, nor should they be asked to do so, considering that it is already recognised that they are living in disadvantaged circumstances. I ask that they be refunded the cost of the consultants' fees for the schemes and not be left out of pocket any longer.

I am aware that Irish Water will have responsibility for implementing the Minister's vision for clean water, but I am also aware that it may take up to five years for all the responsibilities to be transferred fully from the water services departments of local authorities and that an issue arises over public and private group water schemes and their sources. It is not quite clear who will be responsible.

The rules are in place and it appears that Mayo County Council will not be able to spend its funding. I ask that the Minister intervene in the practical way in which we have become accustomed to seeing him do his business and provide a solution and hope for the people affected who have been waiting a long time.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank the Deputy for raising this issue. I am conscious of the good work done by group water schemes throughout the country and the amount of work that goes into putting them in place.

Between 2000 and the end of 2012, my Department, under its rural water programme, provided almost €770 million towards the capital cost of improving existing group water schemes and the provision of new group water schemes. This is evidence and proof of how the group water sector is valued by the State. I am glad to say this investment is continuing and that this year alone a further €20 million has been notified to local authorities by way of block grant allocations under the rural water programme for group water schemes. The Deputy's county, Mayo, is one of the biggest beneficiaries of this funding, having been notified of block grant allocations not of €200,000, as said by her, but €3.45 million towards group water schemes. Nevertheless, I am aware that further work needs to be done and that there is a need for continuing investment in the group water sector towards improvements necessary to allow schemes provide water to required standards.

There are particular issues in putting in place some new group water schemes where the costs involved call into question their viability. I am sure the Deputy has mentioned some of these. At present, grants of up to 85% of the cost, subject to a maximum grant of €6,475 per house, are available towards new group water schemes.

The National Rural Water Services Committee which has a role in advising me on policy and investment in rural water services has been considering this issue and I am expecting to receive some feedback from it by the end of the year. I will then give serious consideration to suggestions the committee may make with a view, if possible, to improving the situation in the areas mentioned by the Deputy that were originally funded under the CLÁR programme.

CLÁR funding was part of a targeted investment programme launched in 2001 and aimed at tackling deficits in physical, economic and social infrastructure in depopulated areas. It was a mechanism of co-funding arranged through Departments, State agencies and local authorities to accelerate investment in the targeted areas. CLÁR worked by leveraging co-funding for various measures from Departments, various State agencies and local authorities. At its height, the programme had an annual allocation of over €20 million. However, decisions had to be made in the Department of Finance in July 2010. In the capital expenditure review it was agreed to wind down this portion of the scheme. In the light of what I have said about the National Rural Water Services Committee examining the matter between now and the end of the year, I will determine what can be done to make additional funding available, if possible, to make up for the CLÁR funding in the finite number of areas that comprise areas of depopulation, as mentioned by the Deputy.

Michelle Mulherin (Mayo, Fine Gael)
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I really liked the Minister's closing remarks. We all know the problem is caused by reducing budgets, but the people in question paid their contributions as far back as 2008 and 2009. If the CLÁR funding had been available in those years, the people in question would have been up and away because the shortfall would have been made up. They have been waiting since that time and there is still the shortfall.

I acknowledge the considerable block grants given to County Mayo. The sum of €200,000 pertains to new schemes. I am aware that considerable resources are given to maintain existing schemes, ensuring proper water quality and monitoring. I do not dispute that grants are given to schemes via the council, but I am just talking about the new schemes. I acknowledge the investment the Minister has made in making connections to public mains in rural areas. This will be of great benefit and give security and a proper water supply in far-flung areas outside urban areas. The areas to which I refer are badly affected and have a terrible water supply. I appreciate the Minister's assurance.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I remind the Deputy that since 1997 local authorities have devolved responsibility in drawing up the list of areas they wish to have considered for funding. They can actually target some funding themselves in consultation with the Department. I realise the areas about which the Deputy is talking have a particular issue in getting a local contribution. The €6,475 per house might not be enough to make a scheme viable. However, as I stated, I am awaiting feedback from the National Rural Water Services Committee on new group water schemes. Perhaps the Deputy might arrange to make a submission to the committee and the necessary details available to my Department in order that we will be able to consider them in the context of the arrangements for 2014.