Dáil Éireann Debate, Tuesday - 12 December 2006
72 Mr. Hayes asked the Minister for the Environment, Heritage and Local Government if, in view of the significant increase to local authorities of wage costs, chemical costs and energy costs he will significantly increase funding for water and waste water facilities; and if he will make a statement on the matter. [42572/06]
View answer151 Mr. Neville asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the shortfall in funding to local authorities for water and waste water infrastructure which will have to be met by development levies, charges or further increases in the consolidated charge for water services; and if he will make a statement on the matter. [42568/06]
View answer162 Mr. Kehoe asked the Minister for the Environment, Heritage and Local Government the expected impact of the universal metering on non domestic water services customers; and if he will make a statement on the matter. [42578/06]
View answerI propose to take Questions Nos. 72, 151 and 162 together.
Government policy envisages full and transparent cost recovery of water services supplied to the non-domestic sector. The policy also provides for the continued funding of the cost of providing water and waste water infrastructure to domestic users through the capital budget of my Department and, in the case of operational costs, through the Local Government Fund.
Cost recovery from the non-domestic sector is to be achieved by a consolidated citywide or countywide, meter based volumetric charge. The policy provides for cost recovery without profit, with charges based on actual metered consumption and no cross subsidisation of the domestic sector by non-domestic consumers. Where there is a mixture of domestic and non-domestic use, such as a farm, an allowance is made by the local authority for the domestic element, which is deducted from the overall charge to the consumer.
Local authorities, in line with the above policies, are moving towards the metering of all non-domestic water use. The effect of this will be to enable local authorities to measure the amount of water supplied to each non-domestic connection to the water service. This will provide a transparent and equitable cost recovery mechanism for water services in accordance with the polluter pays principle and should incentivise all non-domestic users to conserve their use of water and thus minimise this element of their running costs.
Under existing arrangements, the Exchequer makes no contribution towards the funding of non-domestic water services provision. However, the Exchequer fully funds the capital cost of water and waste water infrastructure for all existing domestic consumers and contributes to the funding of future domestic water services provision where this is incorporated in proposed schemes, with the balance of this portion being met from development levies. The marginal capital cost and operational costs for the non-domestic sector must be met through water charges and development levies.
The domestic element of the operational cost of local authority water services falls to be met through the Local Government Fund. The provision for this fund has increased from some €470m in 2000 to over €870m in 2006. Yesterday I announced general purpose grants of some €948m to local authorities for 2007, from the Local Government Fund. This represents an increase of 8% in the compared with the final allocations for 2006. The 2007 allocations figure moreover represents an increase of some 35% over the initial allocations provided in 1997. Additionally a special local government fund allocation of €10m has been made in Budget 2007 to assist local authorities with extra running costs incurred in the operation of new water services infrastructure.
