Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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306. To ask the Minister for Finance the impact on the available fiscal space for 2017 of the suspension of water charges. [25837/16]

Michael Noonan (Limerick City, Fine Gael)
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Estimates of fiscal space for 2017 under the expenditure benchmark are determined by the potential growth rate of the economy, as estimated by the European Commission each Spring, and the estimated outturn for 2016 general government expenditure.

In line with the Eurostat decision in July 2015, Irish Water's expenditure was included in 2015 and 2016 general government expenditure.  Furthermore, the planned general government expenditures for 2017, consistent with the net fiscal space set out in the Summer Economic Statement, include Irish Water's planned expenditure, which has not been revised in the wake of the suspension of water charges.

As the Deputy is aware, decisions that lead to a decrease in revenue are classified as discretionary revenue measures and these reduce the overall fiscal space available. However, the question of how the suspension, as opposed to the abolition, of water charges is to be treated is uncertain and it is being discussed with the European Commission.