Michael McGrath (Cork South Central, Fianna Fail)
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246. To ask the Minister for Finance the deficit in nominal and percentage terms which would exist in 2015 if domestic water charges were not applied, and the costs associated with water provision if brought fully back on to the State's books; and if he will make a statement on the matter. [40441/14]

Michael Noonan (Limerick City, Fine Gael)
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In my reply to the Deputy's PQ No. 166 of 7 October last (37932/14), I pointed out that the CSO would have to take the absence of water charges into account in its classification of Irish Water. I also informed the Deputy that if Irish Water was classified inside general government then all revenue and expenditure would count towards the general government balance.

My colleague the Minister for the Environment, Community and Local Government is providing €533 million from the Local Government Fund, which is in general government, to Irish Water in 2015.  Accordingly, this amount of €533m is already included in general government expenditure for 2015.

Furthermore revenue from non-domestic customers, which I understand is worth about €230m annually, will count as general government revenue off-setting an equal amount of general government expenditure.

I am also providing equity investment of €222m to Irish Water in 2015 subject to the CSO and Eurostat classifying Irish Water as a market institutional unit outside of general government. If this were not the case then such a transfer could, if it were made, be classified as a capital transfer and become general government expenditure when invested by Irish Water.

Accordingly, under the scenario that Irish Water is in general government, any expenditure or investment undertaken by Irish Water in 2015 over and above the amounts outlined above would be counted as general government expenditure and impact the deficit. Money borrowed by Irish Water would also count towards general government debt.

Regarding the costs associated with water provision in 2015, I refer you to PQ No. 498 (35470/14) of 23 September last answered by my colleague the Minister for the Environment, Community and Local Government.