Dáil debates

Tuesday, 4 February 2014

Ceisteanna - Questions - Priority Questions

Irish Water Funding

2:00 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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82. To ask the Minister for Environment, Community and Local Government the money that was provided by the Exchequer for the establishment of Irish Water in 2012, 2013 and in 2014; and if he will make a statement on the matter. [5255/14]

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Does Deputy Cowen wish to introduce his question?

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I think the last three weeks introduced the question better than I ever could.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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No Exchequer funding was provided to Bord Gáis or Irish Water in 2012 or 2013 for the establishment costs of Irish Water. In 2014 Irish Water, which now has statutory responsibility for water services, will receive €240 million in equity from the Minister for Finance and €490 million from the Local Government Fund but no other funding from the Department’s Vote for establishment or other costs.

My Department has provided funding towards the costs of implementing the water sector reform programme. These costs amount to €15.7 million during the period 2012 to 2013. The majority of this expenditure related to funding provided to local authorities to meet the costs of the pre-installation survey required as part of the domestic metering programme and the staffing costs of the water services transition office, which was put in place to ensure appropriate arrangements for engagement with the local authority sector during the reform process. It is estimated that my Department will provide some €2 million during 2014 in respect of my Department’s programme management costs and the cost of the water services transition office. I also expect that some €5 million will be recouped to local authorities in connection with road opening licence work associated with the national domestic metering programme. I remind the Deputy that Irish Water is currently preparing a business plan which will include its capital investment programme, conservation plan and operational costs for 2014 and 2015.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister for clarifying the amount of funding his Department has provided to Irish Water. He stated on television recently that a figure of €180 million was open to being questioned by an Oireachtas committee, but we now know that is not the case because the money was raised by means of a commercial loan between the National Pensions Reserve Fund and Bord Gáis. A commercial loan worth €540 million was also raised from the NPRF for the provision of water meters.

Despite the fact that they have committed, as per the order of last week, in relation to the Freedom of Information Act, I want to question the Minister on the contribution made by the Minister of State, Deputy Fergus O'Dowd, subsequent to the motion placed before the Dáil a number of weeks ago.

2:05 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I thank the Deputy.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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The Leas-Cheann Comhairle must allow me to proceed. I did not elaborate on the introduction of the question and should be allowed a little time to put this question.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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That is not the way it works.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Can the Minister state any question emanating from this side of the House or Government Deputies on the figures of €180 million and €540 million will be answered in the normal fashion because the Minister of State, Deputy Fergus O'Dowd, stated, because of the way the money had been raised, that it was not open to the usual line of questioning by Members?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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As the Deputy will be aware, we are conscious of the importance of full transparency in these matters, particularly when it comes to funding Irish Water, directly or indirectly. As we promised at the Oireachtas joint committee, we are setting up an office in Irish Water to ensure there will be parliamentary accountability. I hope that work will be completed shortly. Any additional information we can provide, either through the direct presence of Irish Water at an Oireachtas committee or directly through a parliamentary reply, including on the figure of €240 million, will be made available in line with the undertaking the Minister of State and I have given.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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The Minister is confirming that he is in the process of putting a mechanism in place by which answers may emanate from Irish Water, but, as it stands, in the case of the figures of €180 million and €540 million, it remains the position that the Department is not obliged to answer any question asked of the Minister in the normal fashion by Members of this House on behalf of taxpayers, as would be the case in relation to parliamentary questions.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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We are conscious of the need to ensure there would be a direct response to Members of this House on money, by loan or otherwise, for the operational or business costs associated with Irish Water. That will be the case and I will certainly see to it that it is carried out.