Catherine Murphy (Kildare North, Independent)
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482. To ask the Minister for Environment, Community and Local Government the level of investment which will be required in Irish Water in order to fully comply with the EU water framework directive; the way the present funding arrangements for local government can be expected to shoulder this expense without a significant deterioration in the funding of other essential services; if it is expected to rely more on the central fund to meet these expenses in advance of the coming onstream of revenue from water charges; if so, the way this is planned to happen and the time period of same; and if he will make a statement on the matter. [49452/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The overall strategy of investment in water services to date has been to ensure that the timing and scale of investment facilitates economic and other development, achieves compliance with statutory requirements and promotes environmental sustainability objectives, including meeting the requirements of relevant EU Directives. The main vehicle for achieving these objectives for public domestic water supplies is the multi-annual Water Services Investment Programme (WSIP). The current Programme runs to the end of 2013. From 1 January 2014 Irish Water will be responsible for the delivery of water services capital infrastructure and is currently preparing a Capital Investment Plan for 2014-15. This Plan will include taking account of the transition of projects that are included in the current WSIP.

The Exchequer proposes a direct equity investment of €240m towards the capital funding of Irish Water in 2014. This will support projects to be included in Irish Water's Capital Investment Plan and will ensure that the entity is in a position to take on the water services investment programmes of the 34 water services authorities, including some 80 projects currently in progress. Irish Water will also finance some of its costs and the liabilities transferred from local authorities through borrowings in 2014.

Work is under way on the funding model for Irish Water's operational costs, to ensure that it can fund the Service Level Agreements being put in place with local authorities for the delivery of water services in 2014. Irish Water is working with local authorities to finalise the 2014 budgets associated with the proposed Service Level Agreements. In parallel with this process, the Department has sought the advice of the Commission for Energy Regulation in relation to anticipated new operational costs associated with new functions for the entity which are likely to arise in 2014. The outcome of these processes will determine the overall funding requirement of Irish Water in 2014 from the Exchequer, Local Government Fund, borrowing and charges.