Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 227: To ask the Minister for the Environment, Heritage and Local Government the percentage of the annual budget provided by his Department to local authorities which is designated for the maintenance of the public water supply; if the percentage is calculated on a [i]per capita[/i] or actual cost basis for each local authority; and if he will make a statement on the matter. [9887/06]

Dick Roche (Wicklow, Fianna Fail)
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In 2004, the latest year for which complete information is available, the estimated expenditure by local authorities in respect of the operation and maintenance of public water supplies was some €214 million. Such expenditure is funded from a combination of non-domestic user charges, general purpose grants and specific grants.

In line with the polluter pays principle and the water services pricing framework adopted by the Government, the operation and maintenance costs of water supplies in respect of the non-domestic sector are recoupable from that sector. General purpose grants from the local government fund are discretionary block grants paid to local authorities as a contribution to their current costs, including domestic water services. In calculating these grants a wide range of relevant factors are taken into consideration, including population and the cost of operating and maintaining the domestic element of water supplies. In 2006, I allocated some €875 million to local authorities in general purpose grants. This represents an average increase of about 7%, more than double the rate of inflation, over the corresponding figure for 2005.

In addition, I have also been able to provide special assistance from the local government fund in recent years to help local authorities to meet the operating costs arising on newly commissioned water and wastewater treatment plants pending the reflection of these costs in the needs and resources model which is used in the allocation of general purpose grants. Some €7.5 million has been allocated to local authorities for this purpose in 2006. My Department is also providing substantial funding to local authorities to reduce unaccounted for water in public water supply systems and to improve the efficiency of such systems, thereby reducing the level of operational and maintenance costs falling to be met by the local authorities.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 228: To ask the Minister for the Environment, Heritage and Local Government the reason the annual budgets allocated to each local authority are not broken down on a service basis by his Department; his views on whether this would provide a more transparent and accountable system; and if he will make a statement on the matter. [9888/06]

Dick Roche (Wicklow, Fianna Fail)
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I assume that the question refers to general purpose grant allocations from the local government fund.

General purpose grants are discretionary block grants paid to local authorities as a contribution towards their current costs. These costs are also funded by specific State grants and income from local sources such as commercial rates and charges for goods and services. It is a matter for each local authority, in the context of its annual budgetary process, to determine its own spending priorities having regard to the amount of funding available to it and local needs and circumstances. I have no proposals to introduce greater central prescription into this process by directing local authorities in relation to the spreading of their general purpose grants.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 229: To ask the Minister for the Environment, Heritage and Local Government his views on whether the huge variances that exist between local authorities' commercial water charges is at least in part attributable to the inadequate amount of funding allocated by his Department; and if he will make a statement on the matter. [9889/06]

Dick Roche (Wicklow, Fianna Fail)
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The Government's national water services pricing policy framework requires local authorities to recover the cost of providing water services from the users of these services, with the exception of households using the services for domestic purposes.

The unit cost of water services provision will differ between sanitary authorities given the differences in the costs of water production across each local authority area and the economies of scale that apply. Sanitary authorities are in accordance with Government policy moving to a more uniform system for determining and applying these charges. It is however a matter for each sanitary authority to set the appropriate level of charges for non-domestic users of water services subject to the policy framework provision for the full recovery of actual costs and water and waste water charges being determined having regard to this principle.

I do not consider that current arrangements for the funding of water services have contributed to the variances in the cost of water services between sanitary authorities. In this regard, the capital cost of domestic water services is funded in full by the Exchequer and has benefited from a significant investment of €2.7 billion since 2000. The operational cost of providing water services for domestic purposes is met by grants from the local government fund, in particular through the general purpose grant which will amount to some €875 million in 2006. I believe that with prudent use of this funding and the pursuit of further efficiencies and expenditure rationalisation, local authorities will be adequately resourced to meet demands including domestic water services provision in 2006 and beyond.