Martin Ferris (Kerry North, Sinn Fein)
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Question 307: To ask the Minister for Community, Rural and Gaeltacht Affairs if he will address the anomaly that exists whereby many applications for CLÁR funding for group water schemes have been rendered ineligible due to the restrictive condition that ancillary costs, that is, road repairs, site supervision, insurance and so on must not exceed 25%. [23290/05]

Éamon Ó Cuív (Galway West, Fianna Fail)
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No application for the CLÁR group water top-up scheme has been rendered ineligible because of ancillary costs. The situation is that my Department will only give a grant based on the contract price plus 25% maximum extra for ancillary costs. It is a matter for the group whether it can pay the difference between the grant and the actual cost of ancillary works if these are more than 25% of the contract price.

Under the CLÁR programme, a top-up, not exceeding €8,382 per house, is provided for group water schemes in CLÁR areas where the cost per house exceeds €7,618 and where the local authority recommends that this is the most efficient way of providing water to these houses.

As part of the criteria for approval of CLÁR funding, ancillary costs over the tender price, for example, for road restoration, must be kept to a minimum and must take into account the specification for temporary restoration works to be carried out by the contractor. Only costs in respect of actual damage done should be charged to the group and shall be less than 25% of the contractor's tender price. The aim is to ensure that the CLÁR funding is properly targeted at the provision of water.

I understand that the national rural water monitoring committee has asked for a review of the road restoration costs associated with group water schemes. I am awaiting the results of this review.