Barry Cowen (Laois-Offaly, Fianna Fail)
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525. To ask the Minister for Environment, Community and Local Government the changes he proposes to the group water scheme subvention from his Department; the time frame for the changes; and if he will make a statement on the matter. [10137/15]

Barry Cowen (Laois-Offaly, Fianna Fail)
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526. To ask the Minister for Environment, Community and Local Government if he will provide by county in tabular form, the expected future subvention rate of rural group water schemes in 2011, 2012, 2013, 2014, and the future expected subvention rate in 2015, 2016, 2017 and 2018; and if he will make a statement on the matter. [10138/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 525 and 526 together.

As part of the Government Decision on Irish Water financing taken on 6 May 2014, the Government agreed that the subsidisation of group water schemes be reviewed to ensure equity of treatment with households on public water supplies. This approach to ensuring households in the group water sector receive equivalent support, while allowing for any transitional issues, to sustain improvement in quality in the sector, was reiterated on 19 November 2014, following a review of the water charging regime undertaken by the Government, the outcome of which was the announcement of a revised charging system for Irish Water customers.

Following completion of the review of the subsidisation of group water schemes the following revised subsidies are operative with effect from 1 January 2015.

- Subsidy A towards the general operational and management costs of group schemes served from a public source is €40 (down from €70);

- Subsidy A towards the general operational and management costs of group schemes served from a private source is €95 (down from €140); and

- Subsidy B towards the operational and maintenance costs associated with “bona fide” Design Build Operate contracts for schemes which have their own water treatment facilities remains unchanged at €220.

The revised subsidies represent fair treatment between drinking water consumers in the public and group sectors having regard to the inherent differences in structure, funding and organisation between the sectors.

The reply to Question No. 287 of 5 February 2015 set out the amount recouped by my Department to local authorities in respect of subsidies paid by the authorities towards the operational costs of group water schemes in 2011, 2012, 2013 and 2014.

The annual savings from the introduction of the changes in subsidies, which will impact on the rate of subsidisation from 2015 to 2018, are currently estimated to be in the region of €1.2 million. This amount is based on the number of houses for which Subsidy A was recouped to local authorities in 2014 qualifying for the full new subsidy amounts in 2015. However, this amount is likely to vary as some houses may not qualify, on the basis of incurred expenditure, for the full subsidy amount. In addition, the number of schemes applying for subsidy may vary from year to year.

To promote sustainable use of water and to enhance water conservation in households, the Department of Social Protection will administer, on behalf of my Department, a €100 water conservation grant for households (primary dwellings) that complete a valid response to Irish Water’s customer registration process. This will also apply in the case of group water scheme households.

The Government remains committed to continuing to support the group water sector as an important element of the water industry in Ireland, founded on co-operative community and voluntary engagement, and to invest in the sector to sustain and improve quality standards and performance.

Barry Cowen (Laois-Offaly, Fianna Fail)
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527. To ask the Minister for Environment, Community and Local Government his plans to introduce changes to new rural group water schemes, as recommended by the National Rural Water Services Committee; the time frame for any such changes; and if he will make a statement on the matter. [10139/15]

Alan Kelly (Tipperary North, Labour)
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Responsibility for the administration of the Rural Water Programme, which includes funding for group water schemes, has been devolved to local authorities since 1997. The selection, prioritisation and approval of individual scheme proposals for advancement and funding under the programme is, therefore, a matter for the local authorities.

The National Rural Water Services Committee, which has a role in advising me in relation to policy and investment in rural water services, has been considering issues arising for the establishment of new group water schemes, particularly where the costs involved call into question the viability of the scheme. Following a recommendation by the Committee, an increase of €1,000 in the maximum grant per house applying to new group water schemes was announced in April 2014. My Department, therefore, now funds 85% of the cost of such schemes, subject to a maximum grant per house of €7,475, rather than the previous limit of €6,475 per house.

My Department is currently considering, in the context of the 2015 Rural Water Programme, a recommendation from the Committee relating to new group water schemes which it may previously have been possible to consider for CLAR (Ceantair Laga Ard-Riachtanais) funding which was administered by the former Department of Community, Rural & Gaeltacht Affairs. I will reach a decision on this recommendation as soon as possible.