Dáil debates

Thursday, 1 May 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 total level of public subvention, the first-fix policy, the low income subsidy and the level of free allowance in its submission to water charges policy; and if he will make a statement on the matter. [19639/14]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Following the disclosure of the debacle that was the excessive costs associated with the establishment of Irish Water, particularly the €85 million spent on consultants, the Government, including Ministers of both party persuasions, committed last January to openness and transparency. It was indicated that there would be a commitment to engagement with the public in the Commission for Energy Regulation's consultation process on the pricing for the provision of water services for homes. Unfortunately, while the process has begun, the submissions of Irish Water and the Government have yet to be lodged, let alone published. Did the Minister bring to the Cabinet some weeks ago a wide range of proposals dealing with the content of my question, including proposals on the amount of public subvention, the first-fix policy, the low-income subsidy, the level of free allowance and the manner in which Irish Water will bill those who have yet to be furnished with a meter?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Government is considering the proposals I have brought to the Cabinet on the funding model for Irish Water, including on the level of Government subvention. Proposals include measures on the affordability of water charges, in particular the provision of a free allowance in accordance with the commitment in the programme for Government. Full details will be announced following the completion of consideration by the Government.

The Water Services (No. 2) Act 2013 provides that Irish Water is required to submit its water charges plan to the Commission for Energy Regulation for approval. The free allowance and the level of funding to be provided by the Government for Irish Water will have a strong bearing on the net charges to be met by households. 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 the Commission for Energy Regulation. The commission will announce its decision on the approved water charges plan in August.

As part of the metering programme, my Department is working in conjunction with Irish Water on a proposal regarding customer-side leakage, the implementation arrangements for which will have to be worked out with Irish Water.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Considering the delay which has ensued, in spite of commitments given by several members of the Cabinet, an example of which was the comments made by the Tánaiste last week to the effect that this should have happened months ago, will the Commission for Energy Regulation be allowed extra time during which the public might be permitted to make submissions as part of the consultation process? Given the issues of the poor quality of water in many areas, the level of leakage and the fact that the Government and Irish Water on its instruction have yet to publish a complete audit of the system and a road map for reinstatement and rectification works and the status of progress in Dublin, the submissions of the Government and Irish Water are required to be published before people would be in a position to make a submission. They may believe the Government's proposals fail to address the deficiencies in certain parts of the country, the issue of hard water and its effect on white goods and the effect on households and their ability to pay the standing charge and the level of the free allowance. They might not meet with their approval.

Considering the Government's delay and procrastination in this area, will the Minister make a commitment to the public, and to this House, that the chief executive officer will be allowed extra time as it did not adhere to the initial commitments on the timetable put in place?

9:35 am

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I agree with Deputy Cowen that a huge level of investment is required throughout the country. Approximately 80 water and wastewater plants are in need of urgent remediation because they are subject to potential European Commission infringement proceedings. Approximately 1 million householders are at risk because water quality is not up to scratch, and there are people on boil water notices. We are establishing a commercial semi-State body to allow us borrow money on the markets to double the amount of investment required and spend €10 billion over the next 12 years making sure that we put matters right. We are trying to make up for the under-investment in the good times.

The regulator will have adequate time for public consultation. He has already started the public consultation process regarding the tariff design and structure and when the Government makes the decision shortly on its submission on the free allowance affordability measures, and all the other issues we are required to do under the legislation, that will be put out to public consultation.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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In the absence of the Minister's own submission, it is very difficult for the public to make a qualified submission, let alone ourselves and many others who have an interest in this issue. Has Irish Water made a submission and, if so, would the Minister instruct it to make that public to afford people an opportunity to ascertain the intentions of Irish Water with regard to these areas? In that way the public would have a better sense of engagement in this process in so far as their objections, concerns or willingness to engage in the process might be recognised more openly and honestly by the Government.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Irish Water is engaged with the Commission for Energy Regulation regarding its submission. Regarding its costs structure, establishment costs and investment requirements in the future, that is part of the process the regulator will have to scrutinise carefully on behalf of the customer. That is going on at the moment. The final piece of the jigsaw to allow the open and transparent system in regard to the charges will happen very shortly. Under the Act the Government will be making the necessary submission to the regulator to give the full picture but the Irish Water dimension of it is in place with the Commission for Energy Regulation, and it is fully engaged in the establishment process.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Can its submission be published?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It has made its submission. It is a matter for the regulator to publish all these matters in due course.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Would the Minister agree it should be published?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It is a commercial semi-State body. The board makes those decisions.