Written answers

Wednesday, 1 April 2015

Department of Environment, Community and Local Government

Irish Water Administration

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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184. To ask the Minister for Environment, Community and Local Government the date he expects to sign an order for the transfer of 250 treatment plants from local authorities to Irish Water; and if he will make a statement on the matter. [13554/15]

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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185. To ask the Minister for Environment, Community and Local Government when the process in relation to the transfer to Irish Water of over-ground assets in respect of water services will be finalised; and if he will make a statement on the matter. [13555/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 184 and 185 together.

On 14 January 2015, I signed an Order under section 12 of the Water Services (No 2) Act 2013 which provided for the transfer to Irish Water of all ‘below ground’ water services assets previously vested in a local authority. On 30 March 2015, I signed a further Order under section 12 to provide for the transfer of 236 treatments plants from local authorities to Irish Water with effect from 3 April 2015.

Considerable work is involved in preparing supporting material for the transfer of over-ground assets from local authorities, to ensure that the Orders reflect the precise nature and boundary of the assets to be transferred. This work is being undertaken by the local authorities and Irish Water in conjunction with my Department. Further Ministerial Orders will be completed in the coming months, subject to taking the time necessary to ensure the assets are accurately set out.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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186. To ask the Minister for Environment, Community and Local Government the total commitment under public private partnership contracts that were or are being transferred to Irish Water, in respect of which there is an estimated operation/maintenance cost of €123,045,700 in 2015; if this information will be provided on a regional basis in relation to the 115 contracts covering 253 sites; and if he will make a statement on the matter. [13556/15]

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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187. To ask the Minister for Environment, Community and Local Government the funding that was paid by his Department or by the local government fund in 2014; the estimate for 2015 in respect of design-build-operate contracts in the water services sector that have an estimated operation/maintenance cost of €123 million in 2015; when these full costs will be transferred to Irish Water; and if he will make a statement on the matter. [13557/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 186 and 187 together.

Following enactment of the Water Services (No.2) Act 2013, responsibility for the delivery of public water services became the responsibility of Irish Water from 1 January 2014. This included responsibility for the overall costs involved, both operational and capital costs. Pending the legal transfer of contracts from local authorities to Irish Water, any costs incurred by local authorities for example on Design Build Operate or other maintenance or construction contracts were recouped under Service Level Agreements.

The transfer of contracts was effected through the provisions of the Water Services (No. 2) Act 2013, which provides the mechanism for the transfer of both water services assets and liabilities of the local authorities to Irish Water. Accordingly, existing Design Build and Operate contracts were included in:

- the Water Services (No. 2) Act 2013 (Transfer of Other Liabilities) Order 2014, which was signed on 20 February 2014, and

- the Water Services (No. 2) Act 2013 (Transfer of Other Liabilities) Order (No. 2) 2014, which was signed on 24 April 2014.

My Department has established from Irish Water, the current extent of DBO contracts in the water sector and the remaining liability on these contracts is outlined in the following table.

Region
Estimated Costs for remaining life of contracts
Contracts
Sites
Average remaining life on current DBO Contracts
South
477,165,646
50
94
15
East
661,302,553
27
60
14
Northwest
267,235,423
38
78
15
Grand Total
1,405,703,622
115
232
15

Irish Water received a subvention of some €439 million from the Local Government Fund in 2014 for operational expenditure, to fund water-related expenditures incurred heretofore by local authorities and which would, historically, have been met by local authorities from their own resources, non-domestic water charge revenues and general purpose grants from the Fund. An amount of €399m has been allocated from the LGF in 2015 in respect of an operational subvention to Irish Water. This subvention will be paid in respect of the child allowance (21,000 litres per child per annum), a product subsidy and capping domestic water charges.

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