Written answers

Tuesday, 3 March 2015

Department of Environment, Community and Local Government

Water Charges Administration

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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549. To ask the Minister for Environment, Community and Local Government if he has made contact with the European Commission since its comments on water rates; and if he will make a statement on the matter. [4304/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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I have not had any contact with the European Commission in relation to the Commission's second Post Programme Review for Ireland which was published by the Commission earlier this year and which contained commentary on the reform of the water sector in Ireland.

A key component of the strategy to establish Irish Water is that Irish Water will be classified as a Market Corporation under Eurostat rules and as a result, will not, other than in relation to Government operating subvention, be included in the calculation of the General Government Balance (GGB).

The Central Statistics Office is responsible for engagement with Eurostat on such matters, and my Department has met with that office and is providing the necessary information to facilitate this work. Early engagement with that office by my Department centred around understanding the rules by which a utility such as Irish Water would be considered as a market corporation. Based on this understanding, the Government is confident that the underlying funding model for Irish Water supports increased investment in the water sector through an off-balance sheet classification of the utility while at the same time providing for water charges which are affordable, clear and certain. The Government remains confident that Irish Water will pass the Market Corporation Test. The decision is ultimately a matter for Eurostat.

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