Introduction of Water Charges

Dáil Éireann Debate, Thursday - 15 September 2011

Thursday, 15 September 2011

Questions (5)

John Halligan

Question:

5 Deputy John Halligan asked the Minister for the Environment, Community and Local Government the proposed cost per household per annum for these water charges; if he will define the free allowance per household; if there is to be a waiver system in place for those households struggling on low incomes, in receipt of social welfare payments and old age pensions; if he will provide information on the proposed creation of a semi-State owned water company called Irish Water; and if he will make a statement on the matter. [24394/11]

Oral answers (15 contributions)

Minister of State at the Department of the Environment, Community and Local Government (Deputy Fergus O’Dowd)

The programme for Government provides for the introduction of a fair funding model to deliver clean and reliable water. The objective is to install water meters in households and move to a charging system based on usage above a free allowance. My Department is currently preparing a strategy to implement these proposals, which will include consideration of the impacts on those categories of households referred to in the question.

The programme for Government also proposes the establishment of a new State-owned water company, Irish Water. The memorandum of understanding between Ireland, the European Union and the International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility. Work on the independent assessment is under way. The assessment will examine the optimal organisational structures for Irish Water, consider the associated legal, financial and organisational issues, and recommend an implementation timetable. The outcome of the assessment will be considered by the Government together with proposals for the establishment of Irish Water before the end of 2011.

Deputy Thomas Pringle

I thank the Minister of State for his response. Unfortunately, it is practically the same response he gave last March to similar questions that were asked then. Householders are preparing for 2012 so they should be given some clarity as to what water charges they can expect. The issue of waivers for those on social welfare and other low incomes should also be addressed. In that way, householders can have clarity and see what is coming down the tracks. This has been flagged so well in the programme for Government and it was also flagged by the previous Government. The same questions were posed in March, yet we basically received the same responses. Will the Minister of State provide some clarity in response to these questions?

Deputy Fergus O’Dowd

The Deputy referred to the answer provided in March and will know that the report was commissioned at the end of July. A draft report will be before us shortly, so the Government will be examining all the issues he raised. When that report is to hand we will make decisions that will bring into effect what is in the programme for Government. There is no doubt about what we will do and the issues are clear. The report will outline the type of structure to be in place when Irish Water is established. All the issues mentioned by the Deputy will be dealt with.

The programme for Government states that there will be an allowance for every household and that charges will be for usage in excess of that allowance. People will have discretion as to how they use their water allowance. When the report is published we will be examining all the issues the Deputy raised in his question.

Deputy Thomas Pringle

I presume the report will examine what the standing charge will be for households, which will make the free allowance moot. I believe the standing charge will be significant and will raise the cost of water charges significantly for householders. Are there any current discussions to indicate what the standing charge will be for householders?

Deputy Fergus O’Dowd

The Deputy is trying to raise hares that do not exist. The programme for Government states that "to achieve a better quality water and environment we will introduce a fair funding model to deliver clean and reliable water". So the objective is to install water meters in every household in Ireland and move to a charging system that is based on use above the free allowance. That is what we are talking about, but the Deputy is raising hares that are not running in this race.

Deputy Thomas Pringle

Standing charges already exist for industrial users.

Deputy Fergus O’Dowd

We want to improve water services and funding is badly needed. There is an inadequate water supply in Dublin, so water will have to be pumped from the Shannon to protect the city's supplies in future. There are various issues concerning climate change also. While water does come out of the sky it must be purified to make it potable. Creating any other scenario does not make sense if the water is not safe to drink. In addition, as a result of climate change, it may not be available to those living in the greater Dublin area. Counties from Donegal to Dublin will not be able to attract industry without an adequate water supply. Some 44% of water produced currently never reaches the taps because it is wasted.

Deputy Clare Daly

Exactly.

Deputy Fergus O’Dowd

All those issues must be dealt with and that is what the report will deal with.

Deputy Thomas Pringle

Will the Minister of State confirm what the standing charge will be for households?

Deputy Fergus O’Dowd

There has been no decision.

Deputy Thomas Pringle

So will there not be a standing charge?

Deputy Phil Hogan

No decision. When we have a decision we will let the Deputy know.

Deputy Joan Collins

People are waiting for that information.

Deputy Phil Hogan

The Deputy should have a bit of patience.