Catherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I thank Senator Gallagher for bringing up this issue, which I understand he has raised previously in this House. On behalf of the Minister, Deputy Eoghan Murphy, I acknowledge his continued interest in the matter.

The Multi-annual Rural Water Programme 2016-2018 operated under the Department of Housing, Planning and Local Government includes the funding of group sewerage schemes through what is known as measure 4(d). This is where the clustering of households on individual septic tanks is not a viable option, particularly from an environmental perspective.

In December 2015, the Department received sanction from the Department of Public Expenditure and Reform to increase the maximum grant per house from €6,500 to €6,750 to cover a limited number of new demonstration group sewerage schemes, specifically two per year. In addition, sanction was also given for these new demonstration group sewerage schemes, in exceptional circumstances, to avail of a supplemental grant, subject to the approval of the Department of Housing, Planning and Local Government, where the project represents the most economically advantageous option.

Where a supplemental grant is approved, the overall level of funding from the rural water programme is limited to 90% of the cost per house subject to a minimum household 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 programme. In total, 83 bids were received from 17 local authorities for funding under measure 4(d) of the new programme.

A proposed Milltown group sewerage scheme was included by Monaghan County Council in its funding bids under the 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 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 for the rural water programme, 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 number five of the six schemes identified. The recommendations were accepted in full when approving schemes under the new programme in 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. Interim funding allocations under the programme were made to local authorities earlier this year. While decisions on the 2018 allocations are yet to be made, the Milltown scheme will be included in this year’s allocations, which are currently being finalised. It is expected that this process will be concluded later this month. Monaghan County Council will be advised on the funding allocation for the Milltown scheme for 2018 at that point.

While we are talking about a specific scheme here, it should be noted that the Government is committed to supporting the funding of rural water services. Under the national development plan, €95 million has been identified for investment in the rural water programme over the period 2018 to 2021. The annual provision will increase by €5 million from €20 million to €25 million in 2019 and this enhanced level of investment will be maintained up to 2021. This significant 25% increase in funding for the programme demonstrates the Government’s commitment to invest in this valuable and relevant resource.

I again thank the Senator for raising the matter again. I have taken notes. I acknowledge I did not answer some of his questions and will ask the Minister to come back to him on the two questions he raised.