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Wednesday, 26 Nov 2014

Written Answers Nos. 156-160

Water Charges Administration

Questions (156, 157)

Barry Cowen

Question:

156. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he has met the Irish Property Owners Association regarding the changes to the water charges regime; if he will meet the group; and if he will make a statement on the matter. [45516/14]

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Barry Cowen

Question:

157. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if landlords will be obliged to collect overdue water charges from tenants' deposits; and if he will make a statement on the matter. [45517/14]

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Written answers

I propose to take Questions Nos. 156 and 157 together.

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.

The occupier of a property is liable to pay the water charges bill, and legislation provides that the owner is the occupier unless the contrary is proven. Irish Water is providing landlords with the opportunity to prove that they are not the occupier by providing the tenant's name. This will allow Irish Water to contact the tenant to complete the registration and to bill the tenant. Such tenants will have to register with Irish Water to avail of the water conservation grant or to get lower charges than the default capped charge (€260), where they are single adult occupants or their metered usage is less than the maximum charge.

Draft legislation which I will be bringing forward will place certain obligations on landlords where the tenant has not paid charges. In the case of tenants in private rented accommodation, the legislation will seek to insert into all tenancy agreements/leases a deemed obligation on the tenant to discharge their liability for water charges. On the changeover of a tenancy, the registration of a new tenant with Irish Water would be conditional on all water charge arrears being discharged and, in the event of the former tenant not discharging those arrears, the landlord would be entitled to withhold the amount concerned from the tenant’s deposit and would be required to remit the amount involved to Irish Water. I have asked my Department to consult with property owner representatives in the course of drafting the legislation.

In the case of local authority tenants, where deposit arrangements do not apply, and where a customer is in arrears for more than 12 months and a late payment fee has accrued, Irish Water, having firstly provided the customer with the opportunity to pay the arrears or enter into a payment plan, will advise the local authority concerned of the amount of the arrears. The legislation would provide for the local authority to recover the amount outstanding over a 12 month period and to remit the amount involved to Irish Water.

Mortgage to Rent Scheme Applications Data

Questions (158)

Michael McGrath

Question:

158. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the number of mortgage to rent applications outstanding; his plans to reform the scheme; and if he will make a statement on the matter. [45547/14]

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Written answers

There are currently two mortgage-to-rent schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage, which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes are designed to assist families with income difficulties whose mortgages are now unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.

On foot of the recommendations of the Keane Report on mortgage arrears the Government launched the AHB-mortgage-to-rent scheme on a pilot basis in February 2012 and extended it nationally in June 2012. The scheme is currently in operation and continues to accept applications from lending institutions.

A total of 2,558 cases have been submitted to the end of October. 1,034 were ineligible or terminated during the process with a further 46 units not progressing as agreement on the sale could not be reached. 50 transactions have been completed under the scheme. 1,044 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and the remaining 384 are actively being progressed.

Separately, my Department has funded 36 cases under the Local Authority scheme to date. The Department currently has 40 LA mortgage to rent applications on hand and expects to receive a small number of additional applications by the end of 2014.

In an effort to increase the numbers delivered under the AHB scheme a new protocol between all parties in the process was agreed and came into operation in June 2014. The protocol includes such measures as the provision of a single independent valuation for the purpose of agreeing the purchase price. The valuation and condition surveys will now be carried out earlier in the process to give more certainty to all parties in the process, including the borrower. The new protocol is endeavouring to ensure that as much certainty is being provided as early as possible in the process to minimise uncertainty and late withdrawals from the scheme.

Also in June 2014, my Department issued revised guidelines to local authorities for dealing with mortgage arrears within their sector under the LA scheme. There are currently no plans to amend the LA scheme, which is at an early stage of operation, but its workings will be kept under constant review. I am confident that delivery will accelerate as a result of these changes.

Commercial Rates

Questions (159, 160)

Michael McGrath

Question:

159. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government his estimate of the payment rate for commercial water rates; and if he will make a statement on the matter. [45553/14]

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Michael McGrath

Question:

160. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the amount of commercial water charges levied by each local authority in 2013; the amount of outstanding water charges taken on by Irish Water broken down by local authority; the amount written off in 2013; and if he will make a statement on the matter. [45554/14]

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Written answers

I propose to take Questions Nos. 159 and 160 together.

Data in relation to collection rates for non-domestic water users are contained in the annual Local Government Management Agency (LGMA) Service Indicators report. The most recent of these is the Local Government Management Agency (LGMA) report Service Indicators in Local Authorities 2012, which was published in March 2014. This report is available on the LGMA’s website at: http://www.lgcsb.ie/sites/default/files/service_indicators_2012_report_for_website_0.pdf.

Data in relation to water charges levied on non-domestic water customers, including in relation to revenue written off, are contained in Appendix 7 of the audited Annual Financial Statements of individual local authorities. Details for 2012 are available at http://www.environ.ie/en/Publications/LocalGovernment/Administration/AnnualFinancialStatements2012/.

The Water Services (No.2) Act 2013 provides for the transfer of water services functions from local authorities to Irish Water on 1 January 2014, and provides for local authorities to act as agents for Irish Water. Local authorities have continued billing, collections and billing/metering query functions in relation to non-domestic customers on behalf of Irish Water. Non-domestic customer data will migrate from local authorities to Irish Water during 2015.

Work is under way in preparing balancing statements for each local authority in relation to their end 2013 position and this will determine the value of liabilities to be transferred to Irish Water.

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