Written answers

Tuesday, 28 March 2006

Department of Environment, Heritage and Local Government

Water and Sewerage Schemes

11:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 531: To ask the Minister for the Environment, Heritage and Local Government his views on whether the water pricing policy framework imposes an unsustainable financial burden on smaller local authorities with a low rates base, such as Waterford County Council, and should be altered to take ability to sustain large capital borrowings into account; and if he will make a statement on the matter. [11600/06]

Photo of Dick RocheDick 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 householders. The capital cost element of a water services scheme related to domestic users is normally funded in full by the Exchequer through the water services investment programme.

The capital contribution for non-domestic use is calculated on a basis related to the marginal cost of providing additional water services capacity. The marginal capital cost of providing the non-domestic capacity of each scheme may be recovered by a local authority in a number of ways. First, where new or additional capacity is required for a particular large scale user, the local authority may seek an appropriate contribution to the cost from that user. Second, the local authority may borrow necessary capital and recover the cost of such borrowing through the water charges on all non-domestic users within their administrative area. Having regard to the above, the cost of providing water services capacity to meet the needs of non-domestic users should not be an element in calculating commercial rates.

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