Dáil debates

Wednesday, 12 March 2014

Ceisteanna - Questions - Priority Questions

Water Charges Introduction

9:30 am

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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1. To ask the Minister for Environment, Community and Local Government the timeline for the public release of the water charges rate and structure; and if he will make a statement on the matter. [12006/14]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I tabled my question in the context of the process that has commenced on the part of the Commission on Energy Regulation, CER. I seek information from the Minister so that the public can be made aware of the various options which will inform the document CER puts forward for public consultation, with a view to arriving at a fixed price for water. Has the Minister made a submission to CER yet on the free allowance, the social welfare support levels, the details of the first-fix policy and the level of the Exchequer subvention into the future? That in itself, in the absence of any other concrete proposal or leak from the Government, might allow the public to ascertain the level of expense they can expect to incur. It is especially important for the Minister to make his proposals known so that people can adjudicate on the process to date and the manner in which it has been handled.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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With effect from 1 January 2014, Irish Water is responsible for public water services. The Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services.  The Act also provides that responsibility for the independent economic regulation of the water sector is assigned to the Commission for Energy Regulation, CER. The commission has been given statutory responsibility for protecting the interests of customers.

Domestic water charges will commence with effect from 1 October 2014 and Irish Water will issue the first bills to domestic customers from 1 January 2015. The approach to charging will be outlined by Irish Water in a water charges plan to be submitted to CER in line with the provisions of the Act and CER will be responsible for approving the water charges plan. CER has indicated that in April 2014 it will be carrying out a number of public consultations, including consultation on the approach to the design of domestic water tariffs for both metered and unmetered properties. CER is expected to announce its decision on the approved water charges plan in August 2014.

The Government is committed to the provision of a free allowance, above which charging based on usage will apply. The free allowance and the level of funding to be provided by the Government to Irish Water will have a strong bearing on the net charges to be met by householders. Consequently, decisions on these matters will provide greater visibility on the expected level of charges in advance of the final determination of all aspects of the water charges plan by CER. I expect to bring proposals to Government in this regard shortly.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister for his response. However, he has merely restated much of what I said at the outset. We are already aware that the Government is obliged to make proposals regarding the free water allowance and the level of Exchequer subvention that will apply to Irish Water. That, as the Minister has said, will form the basis of a mechanism by which we might be able to deduce the sort of costs that will be borne by consumers in January when they get their first bill. When exactly will the Minister submit his proposals? When he says "shortly", what does he mean? We have heard different dates mooted in the media and elsewhere and it is rumoured that the Fine Gael Parliamentary Party will be made aware of the charges that may apply before everyone else. It is imperative at this stage to bring clarity to the situation. A definitive roadmap must be put into the public domain. When will the Minister submit the necessary information to CER? Will the Minister make that information public and will he assure me that it will be in the public domain prior to 23 May?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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We have no difficulty with publishing the documentation that will be approved by Government in advance of any election. I know that the local elections are Deputy Cowen's primary concern, rather than the level of water charges. However, I would urge everyone to be patient. A lot of consultation is going on at the moment with regard to this matter. When I say "shortly", I mean that in the next couple of weeks the Government's submission to CER will be ready.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Is the Deputy happy?

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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No, I am not particularly happy, obviously. I would have preferred to hear the Minister say that the submission will be published this week, which would give us an opportunity-----

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I must get Government approval first.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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-----to assess it. Obviously, I will be making a submission to CER, as will colleagues and members of the general public, which will be included in the mix, with a view to arriving at a conclusion at the earliest possible opportunity. The Minister is urging me and everyone else to have patience but it is very difficult to be patient in view of the manner in which this process has been handled and the way in which public funds have been used and abused. We are no further on in terms of our knowledge of the level of charges because of the veil of secrecy that has engulfed this process since day one.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Deputy Cowen knows that it was his party in government which decided to introduce water charges as part of the memorandum of understanding with the troika. The timescale agreed between the troika and the previous Government for the metering programme and the establishment of a new company was very short. We have simply got on with the work. I can assure the Deputy that we will have the required Government decisions in good time to allow the regulator to publish a consultation document in April.