Written answers

Wednesday, 5 November 2014

Department of Finance

Water Charges Introduction

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

60. To ask the Minister for Finance the reason he will not introduce tax relief at source for water charges for all domestic users; and if he will make a statement on the matter. [42311/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

A number of measures were announced on Budget day to improve the overall affordability of water charges. The objective of these supports is to assist households in the country who pay their water bills.

Following on from the announcement on Budget day, officials from my Department are working closely with their colleagues in the other relevant Departments and Agencies, in the development of the processes that will be employed to deliver the relief.

As I stated on Budget day and subsequently, we will design the measure as broadly and efficiently as possible, to ensure that the relief reaches all households who pay their charges.

In the design of the relief, we must be cognisant on the impact on Irish Water in terms of Eurostat's Market Corporation Test. As the Deputy is aware, the advantage of keeping Irish Water off the Government balance sheet is that the necessary investment in the water infrastructure in the country can be made by the utility without impacting on our deficit or debt targets under the Stability and Growth Pact.

As Irish Water is considered outside of Government, the expenditure by Irish Water does not impact on General Government expenditure.  If the tax relief were provided at source, it is possible that Irish Water could fail the Market Corporation Test and would therefore be classified within general government.

Comments

No comments

Log in or join to post a public comment.