Brian Stanley (Laois-Offaly, Sinn Fein)
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2. To ask the Minister for Environment, Community and Local Government the amount he expects Irish Water to collect in the current year from domestic water charges, and separately from commercial water charges; and if Irish Water will require further subvention from the Exchequer. [15838/15]

Brian Stanley (Laois-Offaly, Sinn Fein)
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My question is about the amount to be realised from domestic water charges and separately from commercial water charges. Earlier this year, Irish Water told me that it needed €899 million this year for operational costs. There seems to be a question about whether the sums will add up to that amount. Will the Minister address those two issues?

Alan Kelly (Tipperary North, Labour)
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I thank the Deputy for the question. The establishment of Irish Water, which is an integral component of the Government’s water sector reform strategy, will lead to lower costs and improved services in the future, providing much better outcomes for customers and the environment. Irish Water is being funded by a combination of domestic and non-domestic water charges, Government support and the raising of debt on capital markets.

The main aspects of the Irish Water funding model are set out in a detailed fact sheet published on my Department’s website. In 2015, Irish Water expects billed income from domestic customers to total €271 million and income from non-domestic customers to total some €229 million, giving a total billed income from customers of €500 million.

Government funding is by way of operational subvention, loans and capital contributions. Specifically, the Government will provide a €399 million operating subvention to Irish Water in 2015. This subvention will be paid in respect of the child allowance of 21,000 litres per child per annum, a product subsidy and the capping of domestic water charges at the rates set out in the Water Services Act 2014.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I thank the Minister for his reply. At Question Time last month he told me the billed amount for domestic water would be €270 million. He also told me that in a written reply. That suggests that he is depending on a 100% compliance rate. He is correct in the sum that Irish Water quoted earlier in the year - €271 million in domestic charges and €229 million in commercial charges, giving €500 million. There will be an Exchequer subvention of €399 million for operational day-to-day costs, but that ignores the fact that there will be a substantial non-payment of these charges. I anxiously await the legislation which the Minister says he is bringing in soon.

Ignoring the water conservation grant and assuming the Minister will do a smoke-and-mirrors job with that, there is a gap in collection because the commercial water rates collected were far lower in the last year for which there are figures.

Alan Kelly (Tipperary North, Labour)
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There will be no smoke and mirrors in any aspect of this or the water conservation grant. The domestic revenue to be delivered is €271 million. There will be several measures in place to enable people to pay, and they will be facilitated by flexi-pay options, etc. There will also be enforcement mechanisms in the legislation, which the Deputy awaits eagerly and which will be introduced in the coming weeks, to ensure that the €271 million will be delivered. We absolutely need that to happen and to ensure that everybody makes their contribution to the charges. The charges outlined are very fair and reasonable.

Brian Stanley (Laois-Offaly, Sinn Fein)
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What the Minister has just said conflicts with his reply during the previous Question Time. He said €271 million was the billed amount. He also said that in a written reply. That is for domestic water charges. The last year for which I can obtain figures for commercial water charges is 2012, when the amount realised was €180 million. The billed amount was €187 million. Local authorities were fairly effective in that year at collecting it. The shortfall between the billed amount and the amount yielded was only €7 million. If Irish Water hopes to get €229 million, there is a gap of €50 million. There will be a significant non-payment, regardless of whether the Minister agrees with that or not. The Minister does not and I do, but that is beside the point. There will be a shortfall of somewhere in excess of €100 million. Will Irish Water look for more money from the Exchequer and this House to make up the shortfall in operational costs? How will that shortfall be made up and will the Government meet the EUROSTAT test, which has been deferred yet again?

Alan Kelly (Tipperary North, Labour)
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The EUROSTAT decision has not been deferred. That is a matter for EUROSTAT. It is an independent body and its independence is critical and necessary. I just want to nail that one.

Brian Stanley (Laois-Offaly, Sinn Fein)
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It has been moved twice.

Alan Kelly (Tipperary North, Labour)
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That is a matter for EUROSTAT. It is not a matter for this Government. I hope the Deputy knows that. It is up to EUROSTAT to make its decisions.

There will not be a shortfall in respect of the figures the Deputy quoted. Legislation on enforcement will be brought through the Houses to ensure that the income I stated, €500 million, will be delivered. I am very confident of that. I am also quite pleased at the number of people who, since the 361,000 bills were received around the country last Monday, signed up immediately. It shows that the people are coming with us and understand that it is absolutely necessary to go down this road.