John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Senator. I am answering on behalf of the Minister, Deputy Eoghan Murphy. With regard to his two final points, on a new scheme and the make-up of the current one, there are no firm proposals yet but the Department will be considering how the scheme worked and examining factors that the Senator mentioned, such as the workload for local communities before making any announcement on whether there will be a renewal.

The Department's new multi-annual rural water programme for the period 2016 to 2018 includes funding of group sewerage schemes through measure 4(d) where clustering of households on individual septic tanks is not a viable option, particularly from an environmental perspective. In 2015, the Department received sanction from the Department of Public Expenditure and Reform to increase the maximum grant per household to €6,750, up from €6,500, to cover a limited number of new demonstration group sewerage schemes — two per year. In addition, sanction was given for these new demonstration group sewerage schemes in exceptional circumstances to avail of a supplemental grant subject to the Department's approval where the project represents the most economically advantageous option. Where a supplemental grant is approved, the overall funding from the rural water programme is limited to 90% of the cost per house, subject to a minimum contribution of €2,250 per house.

In January 2016, local authorities were invited to submit bids for consideration by the Department under the new multi-annual water programme for the period 2016 to 2018. In total, 83 bids were received from 17 local authorities for funding under measure 4(d) of the new programme. The proposed Milltown group sewerage scheme was included by Monaghan County Council in its funding bids under the new measure. The proposed scheme, with a then estimated cost of €280,000, was expected to cover 32 houses and have a unit cost of €8,750 per house. I understand that the Milltown group sewerage scheme proceeded to tender stage in 2016, with an estimated overall cost of €358,000, to cover 30 houses, giving a unit cost of €11,933 per house.

Under the new multi-annual funding framework, an expert panel was convened by the Department to examine the 2016 bids from local authorities for projects under a number of the programme's measures, including measure 4(d), and to make recommendations to the Department on funding. The panel recommended a priority list to the Department under this measure, including the Milltown scheme, at priority 5. The Department accepted the recommendations in full when approving schemes under the new programme and making funding allocations for 2016. As only two demonstration group sewerage schemes can be advanced in any given year, funding was not available to Monaghan County Council for the Milltown scheme in 2016 or 2017. The Department intends to make funding allocations under the programme to local authorities for 2018 early in the new year. Monaghan County Council will be advised on funding for the Milltown scheme at that point.