Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 602: To ask the Minister for the Environment, Heritage and Local Government when he will provide grant aid to Donaghmoyne group water scheme to support them in the major restructuring of the scheme to meet EU regulations; if he has satisfied himself that a scheme as large as Donaghmoyne with almost 1500 household customers and a further 200 non-domestic customers should be entitled to similar grant aid as those who eventually joined the bundle; his views on the fact that on the occasion that the bundle was promoted, it was advised that those who did not join would not suffer a loss in going their own way; if it is not in the best interest of competition and opportunity to see the real cost of water that a scheme such as this should not be disadvantaged; and if he will make a statement on the matter. [11307/07]

Dick Roche (Wicklow, Fianna Fail)
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The provision of water treatment facilities for privately sourced group water schemes through bundled Design/Build/Operate contracts was pilot tested in Monaghan on the basis of a recommendation by the National Rural Water Monitoring Committee. The pilot project initially involved 11 group water schemes, including Donaghmoyne, and three local authority public water supply schemes. My Department provided a 100% capital grant to finance the project under the Rural Water Programme. The Donaghmoyne Group Scheme subsequently withdrew from the pilot project, notwithstanding the special 100% grant for participating groups. Work has since been completed on the other schemes.

In common with other publicly funded programmes, the eligibility criteria for grant assistance under the Rural Water Programme require compliance with certain public procurement, financial management and control procedures, including prior clearance of technical specifications and approval of grants in advance of commencement of works. Following its withdrawal from the pilot project, the Donaghmoyne group scheme progressed alternative upgrading works from initial planning to construction stage although the Committee was advised on a number of occasions that the proposal was not in compliance with the requirements for grant purposes. In the circumstances, no funding can be made available under the Rural Water Programme.