Dáil Éireann Debate, Thursday - 20 November 2014
20. Deputy Michael McGrath asked the Minister for Finance if he expects Irish Water to pass the market test to be off the State’s balance sheet based on the revised structure for water charges; and if he will make a statement on the matter. [44694/14]
View answerIn formulating the most recent proposals announced in relation to the financing of Irish Water and water charges, the Government has sought to ensure that Irish Water will pass the 'Market Corporation Test'.
The charging and financing structure announced on the 19th of November is based on the most up to date forecasts of Revenue, Sales and Expenditure for Irish Water and provide firstly, that the majority of production costs will be met from sales and secondly, that the majority of the Utilities revenue will come from private sources. These are the two key components of the Market Corporation Test (MCT).
As the Deputy is aware, the MCT is undertaken by the CSO and is subject to a final decision by Eurostat. The Department of the Environment, Community and Local Government will provide all relevant details to the Central Statistics Office (CSO) for consideration as part of this process. A submission will subsequently be made by the CSO to EUROSTAT regarding the classification of Irish Water. It is expected that a decision will be made by the time of the next EDP reporting date (end March 2015).
