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Tuesday, 11 Nov 2014

Written Answers Nos. 484-498

Leader Programmes Applications

Questions (484)

Michelle Mulherin

Question:

484. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government the position regarding an application to Mayo North East Leader Partnership in respect of a person (details supplied) in County Mayo; and if it will be expedited for payment. [43228/14]

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Written answers

I understand that Mayo North East Leader Partnership (MNELP) is awaiting additional information from the project promoter in relation to the project mentioned in order to process the claim for payment.

Irish Water Funding

Questions (485)

Pearse Doherty

Question:

485. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government with reference to correspondence (details supplied) if he will lay out to the best extent possible in tabular form broken down by year the income expected to be generated and income incurred by Irish Water, including the sources of the income and expenditure for each of the years 2013 to 2016, inclusive; and in the case of each figure if he will state whether the cost or revenue was off-balance sheet or included in Government deficit and debt calculations. [43285/14]

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Written answers

The establishment of Irish Water is an integral component of the Government’s water sector reform strategy and involves major organisational change. The establishment of a high performance utility will lead to lower costs and improved services in the future, providing much better outcomes for customers and the environment.

Details of Irish Water’s costs are outlined in its revenue and water charges plan which was reviewed by the Commission for Energy Regulation (CER). Details of the review and the CER’s decision are available at www.cer.ie.

Irish Water’s costs in the coming years will be funded through a mix of revenue from the domestic and non-domestic sector, third party finance (such as the Ireland Strategic Investment Fund, EIB, bank lending and capital markets facilities) and State support which may be in the form of both equity and subvention. The CER announced its decision on water charges on 30 September 2014. The amount billed to domestic customers for the year 2015 based on the charging structure announced by the CER will be in the order of €300 million and the amount billed to non-domestic customers would be some €230 million. The Government also decided to provide the following funding to Irish Water in 2015 and 2016:

- An average subvention of €537m in each of the two years, conditional on the annual average domestic water charges to end 2016 for households with both supply of water and treatment of waste water not exceeding €240; and

- Provision of just over €400m in 2015 and 2016 to support increased investment in public water services, including the provision of a “first fix scheme” by Irish Water.

This funding package for 2015 and 2016 builds on the funding being provided to Irish Water in 2014, which includes €239 million in capital funding by way of a capital transfer (€185m) and a convertible loan (€39m,) which will be used to primarily fund the core capital expenditure programme of Irish Water.

In addition, Irish Water will receive a subvention of some €440m million from the Local Government Fund in 2014 which will fund water related expenditures incurred heretofore by local authorities and met by local authorities from their own resources, non-domestic water charge revenues and general purpose grants from the Fund. It is anticipated that Irish Water will finance other costs from non-domestic water charge revenues and from borrowing.

In relation to the 2013 finances of Irish Water, details are set out in the 2013 Annual Report and Financial Statements of Bord Gáis which are available online at http://www.bordgais.ie/corporate/media/BGAR13AnnualReportFINAL07.141.pdf.

Proposed Legislation

Questions (486)

Charlie McConalogue

Question:

486. Deputy Charlie McConalogue asked the Minister for the Environment, Community and Local Government when he expects the climate Bill to be brought before Dáil Éireann; and if he will make a statement on the matter. [42830/14]

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Written answers

In April 2014, the Government approved the General Scheme of the Climate Action and Low-Carbon Development Bill. The Bill is listed among the Bills expected to be published during the Autumn Session, as part of the Government’s Legislation Programme.

Drafting of the Bill is currently being finalised within the Office of the Parliamentary Counsel. I intend to seek Government approval to publish the Bill in the coming weeks, with the objective of introducing it and progressing its passage through the Oireachtas as quickly as possible thereafter.

Water Charges Administration

Questions (487, 493)

Barry Cowen

Question:

487. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the total number of changes to the water charges system introduced since 1 October 2014. [42834/14]

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Michael McGrath

Question:

493. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government if changes to the water charges structure require the approval of the Commission for Energy Regulation; if he is consulting with the CER in this regard; and if he will make a statement on the matter. [42855/14]

View answer

Written answers

I propose to take Questions Nos. 487 and 493 together.

With effect from 1 January 2014, Irish Water is responsible for public water services. The Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services provided by it. The Act also provides that responsibility for the independent economic regulation of the water sector is assigned to the Commission for Energy Regulation (CER) and the CER has been given statutory responsibility for protecting the interests of customers.

The approach to charging was outlined by Irish Water in a water charges plan which it submitted to the CER in line with the provisions of the Act. On 30 September 2014 , the CER issued a determination on the plan and full details and associated documentation are available on the CER website at the following link:www.cer.ie/document-detail/CER-Water-Charges-Plan-Consultation/979.

No changes have been made to the water charges plan since the CER determination. Consideration is currently being given to measures to bring the necessary certainty and clarity to the charging structure to ensure water charges are modest and affordable.

Water Services Provision

Questions (488, 489, 510, 515)

John Browne

Question:

488. Deputy John Browne asked the Minister for the Environment, Community and Local Government the total estimated costs of abolishing Irish Water. [42835/14]

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John Browne

Question:

489. Deputy John Browne asked the Minister for the Environment, Community and Local Government his views on a future referendum on an amendment to the Constitution to prevent the privatisation of Irish Water. [42836/14]

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Pearse Doherty

Question:

510. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government the number of shares he owns in Irish Water; and the date and details of any purchase or sale of shares by him. [43125/14]

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Thomas P. Broughan

Question:

515. Deputy Thomas P. Broughan asked the Minister for the Environment, Community and Local Government if, in the event of the abolition of water charges, he has provided consideration to the creation of a special purpose vehicle in the ownership of the 31 local water authorities to provide investment and support for the modernisation of the water network. [43143/14]

View answer

Written answers

I propose to take Questions Nos. 488, 489, 510 and 515 together.

I refer to the reply to Questions Nos. 1024 and 1057 of 4 November, which sets out the position on the public ownership of Irish Water. I will keep the provisions of the Water Services Acts in relation to the critically important issue of public ownership of Irish Water under review.

An Independent Assessment published in 2012 reviewed the strengths and weaknesses of the delivery of water services through 34 local authorities, and concluded that there was a fragmentation of leadership and co-ordination, difficulty in attaining economies of scale, difficulty in delivering projects of national importance and an aging and poor quality network. The report concluded that the best way of ensuring increasing efficiency and effectiveness of operations and capital investment and accessing new finances for the water sector, was to establish Irish Water as a public utility. Accordingly, no consideration is being given to the creation of a special purpose vehicle or to the abolition of Irish Water.

Irish Water Administration

Questions (490)

John Browne

Question:

490. Deputy John Browne asked the Minister for the Environment, Community and Local Government the number of outstanding contracts with outside companies currently entered into by Irish Water; the companies involved; the expiry date of these contracts; and their overall monetary value. [42837/14]

View answer

Written answers

Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels. I have asked Irish Water to compile the information requested and to forward it to the Deputy as soon as possible.

Irish Water Expenditure

Questions (491)

John Browne

Question:

491. Deputy John Browne asked the Minister for the Environment, Community and Local Government if he will provide a detailed breakdown of the start-up costs of Irish Water broken down by section of expenditure. [42838/14]

View answer

Written answers

The establishment of Irish Water is an integral component of the Government’s water sector reform strategy and involves major organisational change. The establishment of a high performance utility will lead to lower costs and improved services in the future, providing much better outcomes for customers and the environment.

The Commission for Energy Regulation (CER) reviewed the establishment costs and in its decision published on 30 September 2014, indicated that it has allowed Irish Water the vast bulk - some €172.8 million - of the costs proposed. Full details and associated documentation , including a breakdown of the establishment costs, are available on the CER website at www.cer.ie.

Irish Water Funding

Questions (492)

Michael McGrath

Question:

492. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government if Irish Water has undertaken any commercial borrowing to date; and if he will make a statement on the matter. [42852/14]

View answer

Written answers

Section 12(b) of the Water Services Act 2013 provides that Irish Water may borrow money for the purposes of carrying out its functions under the Act but before borrowing any money the consent of the Minister for the Environment, Community and Local Government, the Minister for Finance, the Minister for Communications and Natural Resources and the Minister for Public Expenditure and Reform is required.

Consent for Irish Water to enter into a two year €250m bridging loan facility with the National Pensions Reserve Fund was provided in July 2013 and this loan agreement was recently extended by €50m to €300m by further Ministerial consent. Ministerial consent was also given to Irish Water to enter into an overdraft facility with the Bank of Ireland in the amount of €50 million on 8 October 2014.

Question No. 493 answered with Question No. 487.

Social and Affordable Housing Eligibility

Questions (494)

Patrick O'Donovan

Question:

494. Deputy Patrick O'Donovan asked the Minister for the Environment, Community and Local Government the qualifying criteria for persons coming into the State who apply for social housing; and if he will make a statement on the matter. [42866/14]

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Written answers

Eligibility criteria for social housing are provided for in Section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations 2011.

In order to qualify for social housing support, applicants who are not Irish or UK citizens must have a legal right to reside in the State. The detailed requirements in this regard are set down in Housing Circular 41/2012 – Access to social housing supports for non-Irish nationals - issued by my Department, and are applied by all housing authorities.

Circular 41/2012 is available on my Department’s website at the following link:

http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,29412,en.pdf.

Irish Water Funding

Questions (495)

Brian Stanley

Question:

495. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the amount Irish Water will take indirectly from household charges in 2015, net of all allowances and social welfare assistance. [42868/14]

View answer

Written answers

Irish Water's costs in the coming years will be funded through a mix of revenue from the domestic and non-domestic sector, third party finance (including bank lending and capital markets facilities) and State support which may be in the form of both equity and subvention. The Government have decided to provide the following subvention to Irish Water in 2015 and 2016:

- An average subvention of €537m in each of the two years, and

- Provision of just over €400m in 2015 and 2016 to support increased investment in public water services, including the provision of a “first fix scheme” by Irish Water.

This funding package for 2015 and 2016 builds on the Exchequer funding being provided to Irish Water in 2014, which includes €239m that will be used to primarily fund the core capital expenditure programme of Irish Water.

In addition, Irish Water will receive a subvention of some €440 million from the Local Government Fund in 2014, which will fund water-related expenditures incurred heretofore by local authorities and which would, historically, have been met by local authorities from their own resources, non-domestic water charge revenues and general purpose grants from the Fund. It is anticipated that Irish Water will finance other costs from non-domestic water charge revenues of some €190m and from borrowing, which will be the subject of appropriate Ministerial consents.

Social protection measures are a matter for my colleague, the Tánaiste and Minister for Social Protection.

Election Management System

Questions (496)

Timmy Dooley

Question:

496. Deputy Timmy Dooley asked the Minister for the Environment, Community and Local Government his views on the use of schools as polling stations which often results in children getting a day off school resulting in inconvenience and expense for their parents; and if he will make a statement on the matter. [42875/14]

View answer

Written answers

The primary role of my Department in electoral matters is to provide an appropriate policy and legislative framework for a modern and efficient electoral system. Within that framework, local returning officers are responsible for all matters in connection with the actual conduct of elections and referendums. This includes, in accordance with section 94 of the Electoral Act 1992, the provision of a sufficient number of polling stations, conveniently distributed for the accommodation of the electors entitled to vote there.

Guidance issued to Returning Officers by my Department in advance of electoral events advises that when schools are used as polling stations, every step should be taken to ensure that schools are not closed unnecessarily and that disruption of school work should be kept to a minimum. The Guidance advises that, where possible, school halls should be used instead of classrooms and that voting compartments and other equipment should be fitted up and dismantled after school hours. The Guidance also advises that it is open to returning officers to hire a hall or other premises if they consider it to be appropriate. Electoral law provides that a returning officer may, for the purposes of taking a poll and counting the votes, use a school or any room in a school free of charge.

Motor Tax Collection

Questions (497)

Pearse Doherty

Question:

497. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government the reason persons who pay their road tax every six months pay significantly more than those who choose to pay in an annual payment; and his plans to rectify this. [42898/14]

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Written answers

Motor tax is payable on an annual, half-yearly or quarterly basis. The rates of duty applicable for half yearly and quarterly options are 55.5% and 28.25% of the annual charge respectively. This additional cost element takes account of the extra workload for staff in motor tax offices and the National Vehicle and Driver File unit, and the resultant administrative costs and printing costs that arise, including the issuing of renewal notices.

The estimated annual income from the increased charges for half-yearly and quarterly vehicle licences is in the region of €50m. A loss in income from this source would have a negative impact on revenue and would have to be borne elsewhere in the motor tax system or through the taxation system generally.

I have no plans to adjust the basis for paying motor tax on a half-yearly or quarterly basis currently.

Water Meters

Questions (498)

Terence Flanagan

Question:

498. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government his views on correspondence (details supplied) regarding water meters; and if he will make a statement on the matter. [42919/14]

View answer

Written answers

The Water Services Act 2013 provides for the establishment of Irish Water as an independent subsidiary within the Bord Gáis Éireann Group and assigns the necessary powers to allow Irish Water to undertake this metering programme.

The procurement process for the water meter programme, including setting of specifications on the depth of concrete to be used when installing water meters, is a matter for Irish Water. Irish Water has established a dedicated team to deal with representations and queries from public representatives and has contacted all Oireachtas members to provide details of an improved level of service which it is aiming to provide. The team can be contacted via email to oireachtasmembers@water.ie or by telephone on a new dedicated number, 1890 578 578.

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