I apologise on behalf of the Minister, Deputy Gormley, who is unavoidably absent and would have wished to be here for this Supplementary Estimate. On his behalf, and on behalf of Minister of State, Deputy Batt O'Keeffe, the Minister of State, Deputy Hoctor, and myself, we look forward to working closely with the committee during the term of this Dáil on legislation, Estimates and all kinds of other business in which the committee may have an interest. I am accompanied by officials from my Department, Terry Allen, Peter McCann, Enda Falvey and David Smith.
I welcome the opportunity to present and discuss with the committee the proposed Supplementary Estimate requirement for an additional €50 million under subhead C1 of the Department's Vote for which I am seeking Dáil approval. The additional funding is required to facilitate ongoing construction of water and waste water schemes approved under the Department's water services investment programme. A briefing note has been made available to the committee setting out why the additional funding is needed and providing an overview of current activity in the water services sector.
The proposal to increase water services capital funding by a further €50 million this year reflects the commitment to this important sector by the Minister, Deputy Gormley, myself and the Government. The national development plan provides for a total of €4.7 billion in capital spending for water services infrastructure - an increase of 27% on the €3.7 billion spent under the previous plan.
Last September, the Minister launched the latest phase of the Department's water services investment programme. The programme includes 955 schemes. It identifies the schemes to start construction in the years 2007 to 2009, along with others that have been authorised to begin planning with a view to construction commencing in the period post 2009. The programme is an ambitious one and this is as it should be.
The preservation and improvement of environment standards and of our water quality, along with the provision of sustainable water services, is a key issue for Ireland. It is central to the Government's environmental policies and one to which I attach a very high priority in the Department. Great effort and resources have been devoted in recent years to the upgrading of our water services infrastructure. In addition to meeting environmental and water quality objectives, water services capital investment also plays a crucial role in support of social and economic development in an expanding economy with a growing population. The €4.7 billion for water services in the NDP is an unprecedented commitment to the provision of the infrastructure needed to support development and economic growth while, at the same time, ensuring environmental sustainability.
I would like to outline for the committee the scale and scope of what is happening under the water services investment programme in order to clarify why I am looking for the Supplementary Estimate. I also intend to comment on other important recent developments in the regulatory and standards areas.
The priority for water services over the NDP period is to meet environmental goals and objectives while also facilitating economic, housing and other development. Specific targets include meeting in full our obligations under national and EU law in relation to drinking water standards and the disposal of waste water. These targets are also reflected in the programme for Government and Towards 2016. Without adequate water services infrastructure, no development can take place, nor can environmental standards be preserved. In other words, this programme is at the core of the development process across the country.
In this first year of the new NDP, an Exchequer provision of €446.6 million has been made available for water services infrastructure. This includes a €20 million capital carryover from the Department's 2006 Vote. Activity on the programme in 2007 is up on last year. This is reflected in the end of November expenditure figures which are up 10% on this time last year, due to the increasing number of schemes that have advanced to the construction stage. At the end of 2006, 77 schemes were in progress. The number of schemes in progress at the end of this year will have risen to 120 and a further series of schemes are expected to start in 2008.
The increased momentum on the programme reflects more streamlined procedures introduced by the Department in 2006 to accelerate progress with individual projects. For example, schemes valued under €5 million can now proceed right through to construction after they receive preliminary approval without further reference to the Department, provided they remain within the agreed budget. In addition, the need for departmental approval to award a contract has also been dropped for all traditionally procured projects, irrespective of value, provided the costs remain within budget parameters.
The resulting speeding up of progress on individual schemes is something to be welcomed. The dividend of investment in our water services infrastructure more than pays off in terms of environmental gain, as we clean up our rivers and lakes, in social and economic capital, and as a support to investment in social and economic development.
The increased capital funding of recent years has transformed the quality, coverage and scale of our water services infrastructure. The €3.7 billion spent under NDP 2000-2006 has resulted in major progress in preserving and improving environmental standards, as well as supporting unprecedented social and economic growth and development in every part of the country. Some of the more significant achievements include increased compliance with the requirements of the EU urban waste water treatment directive from 25% in 2000 to some 92% at present. All remaining schemes necessary for full compliance with the directive are included in: the water services investment programme; the provision of additional waste water treatment capacity equivalent to the needs of a population of 3.1 million; the corresponding increase in drinking water treatment capacity would service a population of 768,000; the completion of over 350 schemes, including some exceptionally large waste water projects in Dublin, Cork, Limerick, Wexford, Galway, Drogheda, Dundalk and many other major urban areas; and the provision of some 90,000 residential sites under the serviced land initiative to date. We are building on this progress to ensure there is continuing capacity to service activities that will maintain economic growth and allow development to take place in an environmentally sustainable way. The Supplementary Estimate is required for schemes being put in place expressly for that purpose to ensure that critical momentum on this investment programme is maintained.
While good progress is being made in providing vital new infrastructure, I am aware there is a parallel need for increased emphasis on regulation and enforcement to ensure that the environmental and water quality targets are also delivered on. We must complement the capital investment with better monitoring and tighter controls to ensure that drinking water quality consistently meets the highest standards. Waste water treatment plants also must perform to optimum level at all times to ensure that discharges do not adversely impact on our rivers and lakes.
Earlier this year, new drinking water regulations and related monitoring requirements were introduced by the Minister, Deputy Gormley. The regulations give new powers of supervision and enforcement to the Environmental Protection Agency, EPA, regarding local authorities' performance of their functions in respect of drinking water. The agency now has direct supervisory responsibility for local authority water supplies. While local authorities continue to be responsible for supervising group scheme supplies, the agency is required to supervise the performance by local authorities of their monitoring functions over group schemes. These provisions, which will be further strengthened by the commencement of key operational sections of the Water Services Act 2007 before the end of the year, will provide a strong legal framework to underpin the delivery of quality water supplies across the country at both local authority and group scheme level.
Regulations were also made in September introducing an EPA licensing system for discharges from local authority waste water treatment works and collection systems. The EPA can stipulate licence conditions to ensure compliance with mandatory discharge standards and conformity with obligations under EU environmental directives. Failure by a local authority to comply with a condition of a licence will be an offence.
The importance of drinking water quality was brought home forcefully to all of us this summer by the cryptosporidium crisis in Galway. When the Department's water services investment programme was announced in September the Department outlined the steps it is taking, in conjunction with the Environmental Protection Agency, to develop a systematic and accelerated response to the cryptosporidium risk, as well as to persistent e.coli failures in public water supplies. These measures include a new contingency funding arrangement to deal with priority infrastructural upgrades.
The Department and the EPA are examining the latest drinking water quality results with a view to cataloguing those supplies at greatest risk from cryptosporidium and also supplies that are subject to continuing e.coli or other chemical exceedences. I expect this analysis to be completed within the next few months. The objective is to develop an action programme that identifies an appropriate solution in each case. This could involve abandoning an existing source, upgrading the treatment plant or improving the operation and maintenance regime. The contingency funding arrangements will apply where infrastructural works are urgently required that have not already been provided for in the current or previous phases of the Department's water services investment programme. The EPA will oversee implementation of any necessary remedial actions as part of its enhanced supervisory function under the new drinking water regulations. Where strong action becomes necessary the agency will take it.
The record level of funding devoted to water services infrastructure in recent years has allowed us to make unprecedented progress in compliance with national and European Union requirements on water quality and waste water discharges. The resulting environmental benefits provide critical support for tourism, water-based activities and overall quality of life. Good quality water services infrastructure helps to promote inward investment. It also aids enterprise and job creation and facilitates social and economic development. All of these activities have a crucial bearing on our overall prosperity and living standards.
The importance of investment to further expand the scope and coverage of the national water services infrastructure is universally recognised and acknowledged, and is a central element of the national development plan. The additional €50 million Supplementary Estimate is required to facilitate ongoing construction of schemes that have been approved for funding under the Department's water services investment programme as part of the overall NDP strategy. Schemes currently under construction and costing in the region of €30 million to €60 million include the following: Ballymore Eustace water treatment plant; Donegal Bay waste water treatment plant; lower Liffey Valley sewerage scheme; Portlaoise sewerage scheme; and Castlebar environs sewerage scheme.
Schemes in the water services investment programme have been prioritised and approved in accordance with specific criteria to meet particular objectives. The overall objective is to preserve environmental and water quality standards, facilitate sustainable development and provide support for the national spatial strategy. The proposed Supplementary Estimate will ensure there is no loss of momentum in the provision of essential infrastructure and that we can continue to respond effectively to the demands of a growing economy and an increasing population who rightly expect the best quality services and environmental standards.
I assure the committee that the Minister, Deputy Gormley, and myself are positively committed to the full implementation of the water services investment programme. There will be a high level of spending on the programme in 2008 and the Department will ensure the positive momentum that has been built up is maintained.
I have outlined the reasons this Supplementary Estimate is required and hope the committee will be positively disposed to the necessity for the additional requirement of €50 million in the current year. I will endeavour to respond to any queries members may wish to raise.