Dáil Éireann debate -
Thursday, 30 Jan 1997

Vol. 474 No. 2

Adjournment Debate. - Group Water Schemes.

Dr. O'Hanlon

I am very concerned at the antirural bias of the Minister's decision of 19 December to abolish water charges in urban areas while totally ignoring the 150,000 households in rural Ireland connected to group water schemes. This is a matter of fundamental importance in my constituency. I wish to ask the Minister a number of questions.

Was the decision thought out? Why did the Minister announce it almost immediately after 88 local authorities spent weeks preparing their estimates for 1997? They were undermined by the abolition of water charges and their replacement by motor tax. Was there agreement between Fine Gael, Labour and Democratic Left on this matter? I have no doubt that Labour and Democratic Left would not worry too much about rural Ireland. Why did the Minister discriminate against rural Ireland? On 21 January when he tried to correct his monumental blunder, why did he not decide to abolish water charges for all people on group water schemes rather than only for those who receive their supply from local authorities?

Does the Government believe that motorists should be responsible for local charges? Nobody else believes that. If motor tax went towards roads it would be acceptable but not in substitution for other charges in urban areas. Does the Minister realise he has totally undermined urban councils by removing their source of funding? They will be unable to keep funding from motor tax, they will be similar to town commissioners. Does the Minister believe it is equitable that most people pay no charge for their water supply while some must be satisfied with a tax rebate of up to £150? Will he guarantee that the funding provided this year will be sufficient for current needs of local authorities, particularly for the upgrading of the water supply to Environmental Protection Agency standards, about which the Minister made much fuss? Did the Minister consult local authorities about group water schemes? Did he consult the group water schemes and, if so, how many of them want to be taken over by local authorities? If that is done, local authorities will have power to limit the amount of water they receive and to charge whatever they wish.

This decision, which was badly thought out, is anti-rural. When the Minister found he was in a hole, rather than rationalise his way out of it, he dug himself deeper into it. As he is aware, an important meeting will take place tonight in Tuam which will be attended by representatives of group water schemes throughout the country. Those people are irate at what they see as discrimination against people in rural Ireland, including those who receive their water supply from privately sourced group water schemes.

My colleague, Deputy Dempsey, when speaking yesterday on the budget stated that Fianna Fáil in Government will ensure that all people in group water schemes will receive equality of treatment in recognition of their role in providing a vital service in rural areas. Will the Minister at this late stage consult with representatives of group water schemes to ensure equity between urban dwellers and people living in rural Ireland?

Mr. O'Shea

My colleague, Deputy Howlin, the Minister for the Environment, regrets that due to other official business he is unable to be present to reply to this debate. I am glad, however, to have the opportunity of explaining to the House his position on this matter.

Better Local Government—A Programme for Change, which the Minister published last December, lays down a comprehensive agenda for change which features increased devolution of responsibility to local authorities and a new funding system under which local authority charges for domestic water and sewerage services are being abolished. Following on the decisions in that programme, the Minister recently announced a package of specific measures on group water schemes and small public water and sewerage schemes. These measures include the devolution of responsibility for group schemes to local authorities, a policy that was signalled in the Department of the Environment's operational strategy, published in March 1996, and recommended by the Devolution Commission. This policy was extended to small public water and sewerage schemes in the programme published last month. A capital provision of £15 million is being made available to local authorities in 1997 in block grant form to finance this package of measures.

In line with the abolition of service charges for water and sewerage facilities, local authorities will no longer charge group water schemes for the supply of domestic water. This will lead to a considerable reduction in the amount of charges made to members of groups supplied from public schemes. The Minister is very much aware that there are a large number of rural households served by group schemes which have their own private supplies and that a significant number of these supplies are not up to standard. The most recent Environmental Protection Agency report on drinking water quality has drawn attention to the poor quality of private group schemes where chlorination and other suitable disinfection procedures are either inadequate, poorly maintained or not used. It is essential at this time to concentrate greater resources on upgrading these schemes.

For the first time, the Minister is making a special capital provision of £5 million in 1997 to establish a new multi-annual programme of works by local authorities to enable them to upgrade and take over existing group water and sewerage schemes, thus remedying substandard systems and eliminating domestic charges for the group scheme members concerned. A number of large, efficient and well managed group schemes, including some from Deputy O'Hanlon's constituency, may prefer to remain fully private. This preference will be fully respected and the necessary financial and technical assistance for the refurbishment of these schemes will be available through the normal group water scheme programme, in future to be managed by local authorities. The Minister is convinced that the key to improved operational efficiency in private group schemes is through greater local authority involvement in all aspects of the management and operation of the schemes.

The Department of the Environment is proceeding immediately with arrangements for the devolution to local authorities of full responsibility for the administration of group scheme grant applications for new schemes, or the extension or upgrading of existing ones. Full responsibility for small public water and sewerage schemes will also be devolved and capital funding in the form of block grants will be made available to local authorities for this purpose in 1997 and future years. Local authority managers are being consulted in working out the detailed arrangements for the implementation of these measures.

Submissions received from group water scheme committees will also be taken into account in this context. The Minister has already assured local authorities that additional current costs incurred by local authorities in the implementation of the various measures will be among the factors taken into account in determining distributions from the equalisation fund being established this year.

There is no question of inequity in the treatment of urban versus rural dwellers. In the case of households served by local authority public water and sewerage systems, the objective was to remove charges in respect of domestic connections to these systems in the context of a new funding system for local authorities. It was never the intention, nor would it be appropriate, to include every private water supply and sewerage installation in these arrangements. The large number of group schemes connected to public water supply systems will no longer have to pay local authorities for the supply of domestic water. Those group schemes not connected to a public supply stand to benefit directly from the special measures I referred to, as they are upgraded and taken over by local authorities. Members of all group schemes will continue to benefit from income tax relief at the standard rate in respect of charges of £150 per year paid to groups.