Brian Stanley (Laois-Offaly, Sinn Fein)
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5. To ask the Minister for Environment, Community and Local Government the current position; when he expects a EUROSTAT report on Irish Water's finances to be completed; and if he is satisfied that Irish Water will pass the criteria given that projected income from domestic water charges will fall well short of the running costs of Irish Water until at least 2018. [29236/15]

Brian Stanley (Laois-Offaly, Sinn Fein)
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When does the Minister expect EUROSTAT's report and determination on the finances of Irish Water to be completed? Does the Minister believe it will pass given the projected income and particularly yesterday's figures?

Alan Kelly (Tipperary North, Labour)
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A key component of the strategy to establish Irish Water is that the utility will be classified as a market corporation under EUROSTAT rules and as a result will not, other than in relation to Government support, be included in the calculation of the general government balance. The Central Statistics Office is responsible for all engagement with EUROSTAT on such matters, and the Department has engaged with this office and has provided the necessary information to facilitate this work. As the Deputy is well aware, because we have discussed it numerous times in the Chamber, they are independent bodies which do their work independently of Departments. The CSO has confirmed it has submitted a classification proposal on Irish Water to EUROSTAT and that the proposal envisages Irish Water being classified outside the general government sector. The CSO has further stated this is a closed process and that it is awaiting the final adjudication by EUROSTAT. When EUROSTAT will announce its decision is a matter for EUROSTAT.

The Government is confident the underlying funding model for Irish Water supports increased investment in the water sector through an off-balance sheet classification of the utility, while at the same time providing for water charges which are affordable, clear and certain. The substance and timing of the decision on the classification of Irish Water will be made by EUROSTAT alone. It is not for me to state when it will do so. I expect it will not be too long into the future.

As the Deputy is well aware, Irish Water's first quarterly billing cycle has been completed. The utility has indicated it is satisfied with the rate of revenue collection to date and a very significant level of engagement with customers is continuing.

Brian Stanley (Laois-Offaly, Sinn Fein)
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The Minister's reply does not tell me much. Several months ago he stated we would know in June, then I heard September mentioned and now we do not know. The big justification for establishing Uisce Éireann was that it would be off-balance sheet. Given that four out of ten people are paying domestic water charges, it shows there will be an awful lot on balance sheet. A total of €30.5 million has been received but €32.5 million has been budgeted to go out through the water conservation grant. It does not matter how these figures are juggled or what accountancy tricks are done, the €130 million water conservation grant may help the Minister to get it over the line as might the write-off of €59 million in rates, which will fall back on the public purse, and a number of other accountancy tricks which are being worked-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy should put his question.

Brian Stanley (Laois-Offaly, Sinn Fein)
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Does the Minister seriously believe he will be able to comply with this? More importantly, does he seriously believe he will be able to keep the finances of Irish Water off-balance sheet?

Alan Kelly (Tipperary North, Labour)
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I thank the Deputy. I also have to be open and straight with the House. This is a matter for EUROSTAT. I expect it will be imminent but I cannot dictate or decide when it will make its decision. We have already stated quite publicly what has been put forward to it, but it is an independent process with regard to its decision and when it announces that decision. I have no control whatsoever over this and I hope the Deputy appreciates this. I do not know whether he is shaking his head because he agrees or disagrees with me, but I have no control over it. I expect it will come forward with a decision. I am very confident it will decide it is off-balance sheet. For the Deputy's information, I am very satisfied, as I said through numerous media yesterday, with the response in the first billing period from customers of Irish Water.

Brian Stanley (Laois-Offaly, Sinn Fein)
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Here we are seven months into the billing period and we do not know when EUROSTAT will rule on it. We know what is coming in is one tenth of what were projected to be the costs this time last year, which was €300 million. If the Minister remembers, just before the Government pushed the Commission for Energy Regulation out of the way, it was stated €300 million was to be brought in this year through domestic water charges. There is massive subvention, with €339 million in operating costs, €222 million in capital costs, €59 million in offsetting of rates, and €130 million in the water conservation grant. Does the Minister realise what he has put onto the balance sheet from Irish Water? A total of €810 million is all on the balance sheet. It is Alice in Wonderland economics. Is it not the case the only way Irish Water will ever be able to cover the cost is either through massive subsidy, such as the €810 million going to it this year, or by increasing the cost massively on the far side of the general election?

The Minister has given an assurance that costs will not increase until the end of 2018. How will Irish Water get from here to the end of 2018, given the figures released yesterday?

Alan Kelly (Tipperary North, Labour)
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Very simply, people will pay their bills. That is how Irish Water will get there. It is a straight question and a straight answer.

Brian Stanley (Laois-Offaly, Sinn Fein)
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The figure is €810 million.

Alan Kelly (Tipperary North, Labour)
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The Deputy asked a question and I ask him to do me the courtesy of allowing me to give him the answer. People will pay their bills. That is how Irish Water will get there and how the model will work. I have no plans to increase anything post the general election, now that the Deputy has raised the issue, considering that I have put this model in place. The Deputy does not like the information, but the billing period for which statistics were released yesterday covered April, May and June. In some cases, people only received their bills a few weeks ago. The average period of time in which people pay their bills is three to four months. I know that does not suit the Deputy's theory and thinking, but the idea that everyone should pay his or her bills immediately to suit his belief system is unrealistic.