Denis Naughten (Roscommon-South Leitrim, Independent)
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1513. To ask the Minister for Environment, Community and Local Government the reason for the reduction in the annual grants to households in group water schemes; the estimated saving to Government in 2015; his plans to review the cut to such grants in light of the financial impact that this is having on families; and if he will make a statement on the matter. [32152/15]

Alan Kelly (Tipperary North, Labour)
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I assume the Question is referring to the scheme under which subsidies are paid to Group Water Schemes towards their operational costs.

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 annual savings from the introduction of the changes in subsidies 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. It is not possible at this stage, therefore, to indicate what the savings in 2015 will be.

To promote sustainable use of water and to enhance water conservation in households, the Department of Social Protection is administering, on behalf of my Department, a €100 water conservation grant for households (primary dwellings) that completed a valid response to Irish Water’s customer registration process by 30 June 2015. This grant also applies 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.