Barry Cowen (Offaly, Fianna Fail)
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135. To ask the Minister for Housing, Planning, Community and Local Government further to Parliamentary Questions Nos. 231 of 14 June 2016 and 133 of 5 October 2016, when funding for Irish Water for 2016 will be decided; the total revenue shortfall in 2016 and 2017 when abolition of the water conservation grant is taken into account; and if he will make a statement on the matter. [31449/16]

Barry Cowen (Offaly, Fianna Fail)
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136. To ask the Minister for Housing, Planning, Community and Local Government further to Parliamentary Questions Nos. 231 of 14 June 2016 and 133 of 5 October 2016, if the shortfall in Irish Water revenue is anticipated to impact upon the Irish Water capital investment programme; and if he will make a statement on the matter. [31450/16]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 135 and 136 together.

The Government, on 18 October 2016, considered the shortfall in domestic revenue to Irish Water arising from the suspension of domestic water charges in the period to 31 March 2017. In relation to the 2016 shortfall of €181m, the Government decided that this will be met by a combination of: additional subvention, funded by savings of €110m from the Water Conservation Grant; the conversion of an already planned 2016 working capital loan of €58m, into subvention; and a reallocation of savings of €13 million. The 2017 shortfall of €125m arising from the suspension of domestic water charges to 31 March 2017 will be metby a corresponding increase in public subvention.

The Government has established an Expert Commission to make recommendations for the sustainable long-term funding model for the delivery of domestic water and wastewater services by Irish Water. The Commission will report to a Special Oireachtas Committee and consideration of recommendations on the funding model will ultimately be voted upon by the Oireachtas next year. Pending the outcome of the Expert Commission on the funding of domestic water services and the consideration of the Commission’s report by the Oireachtas, it is not possible to determine what financial implications may arise for Irish Water post March 2017.

As regards Irish Water’s capital investment, the Programme for a Partnership Government reflects the overall commitment to a capital investment of €5.5 million to end of 2021, as set out in Irish Water’s Business Plan 2014-2021. The investment programme for the period 2017-21 will be subject to review by the Commission for Energy Regulation (CER), and any Government funding will be subject to future budgetary decisions.

On 30 September last, the CER published its consultation on the level of Irish Water's allowed revenue, including proposals on operational and capital budgets, for the 2017 and 2018 period with a view to a final decision being made by the CER by end 2016. A copy of the CER's consultation paper is available on its website, .