Máire Hoctor (Tipperary North, Fianna Fail)

I am pleased to take this matter on behalf of my colleague, the Minister for the Environment, Heritage and Local Government, and I thank Senator O'Domhnaill and the Seanad for this opportunity.

The Government's policy on charging for water supply and waste water has been in place since 1998. The policy was developed to implement the polluter pays principle and to meet the requirements of the European Union water framework directive, which requires member states to apply suitable charges to recover fully the costs of providing water services by 2010. The directive also requires member states to ensure water pricing polices provide adequate incentives to use water resources efficiently. The Government's water pricing policy requires non-domestic users to pay for water services, including the cost of treating and supplying water, meter installations, the marginal capital costs of providing water services infrastructure and the ongoing operational and administrative costs associated with the provision of the services. The non-domestic sector includes the agricultural sector. The Exchequer funds the capital cost of water services infrastructure for domestic users and the operational cost of domestic water services provision is met from the Exchequer via the local government fund. Cost recovery from the non-domestic sector is to be achieved by way of a meter-based volumetric charge. Cost recovery is to be without profit, with charges based on actual metered consumption and no subsidisation of the domestic sector by non-domestic consumers is allowed. Where there is a mixture of domestic and non-domestic use, such as a farm, allowance is made for the domestic element, which is deducted from the overall charge.

In response to representations from the farming sector, billing guidance that issued to local authorities in December 2006 included a request that authorities consider the necessity for special discounting arrangements in the case of multiple water meters on fragmented small farm holdings. The guidance recommended that the total metering charge in such instances should not exceed 180% of the cost of the first connection, irrespective of the number of meters. The December 2006 guidance also provided interim advice, based on a study by the County and City Managers Association, that a domestic allowance for mixed-use connections, including farm connections, of 225 cu. m. be applied by all local authorities. This was a significant increase on the allowances which had been allocated by most local authorities previously.

The 2008 water charges, as supplied by the local authorities, show an average combined charge for the supply of water and treatment of waste water of €2.07 per cubic metre. Charges for water in Ireland are considerably lower than the European average which was €3.25 in 2007 and which are as high as €5.09 in Germany and €5.63 in Denmark. It is not possible to make any further concessions for farmers as this would conflict with our legal obligations under the water framework directive.