Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
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1362. To ask the Minister for Housing, Planning, and Local Government if the rate of subsidy paid to group water schemes will be increased in view of the fact that the subsidies paid to group water schemes do not cover the full maintenance costs of the schemes and in some cases there is a shortfall of between 25% and 35% annually; if the cost of the shortfall could be met at the end of 2018; and if he will make a statement on the matter. [36182/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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In late 2017, my Department conducted a review of Group Water Scheme subsidies. The review involved discussions with the National Federation of Group Water Schemes, the representative body of the Group Water Sector. Discussions concluded in December 2017, when I approved increased subsidy levels. The new subsidy arrangements, endorsed by a special delegate conference of the Federation on 13 December 2017, came into effect on 1 January 2018. Local authorities were advised of the increased subsidy levels on 19 December 2017.

The changes implement the recommendation contained in the report of the Joint Oireachtas Committee on the Future Funding of Domestic Water Services (JOCFFDWS), endorsed by both Houses of the Oireachtas in April 2017, that there should be equity of treatment and equivalent financial support between households using public water services and those availing of private water services.

Additionally the Multi-annual Rural Water Programme provides capital funding opportunities for Group Water Schemes to, if suitably located, interconnect to and be taken in charge by Irish Water (Measure 4 of the multi-annual programme), or amalgamate with nearby Group Water Schemes forming a new larger entity that is more effective, including in their day-to-day running costs, through economies of scale (Measure 1 of the multi-annual programme).

Measure 3 of the multi-annual programme provides capital funding for schemes to undertake water conservation works to reduce their wastage of water, through carrying out where necessary, replacement of defective water mains thus enabling schemes to reduce their day-to-day running costs.

Separate to the initial review of Group Water Scheme subsidy levels and also in fulfilment of the JOCFFDWS recommendations, in April 2018, I established a Working Group to conduct a wider review of investment needs and rural water services. There will be a two-strand approach to the considerations of the Working Group. Strand 1 will consider the composition and distribution of funding for the Multi-annual Rural Water Programme from 2019 up to 2021, while Strand 2 will consider the more complex longer-focus issues surrounding the long-term future resourcing of the Rural Water Sector.

In order to put the review process on the best footing, I have established a significantly increased funding base for the Rural Water Programme. This increase is reflected in the National Development Plan where investment in the Programme is set to rise by €5m or 25% in 2019, and this enhanced level of investment will be maintained for the three year cycle up to 2021.