Dáil Éireann Debate, Tuesday - 2 December 2014
557. Deputy John McGuinness asked the Minister for the Environment, Community and Local Government the amount of money that has been spent on the establishment and running of Irish Water to date; the amount of money that will be required to run Irish Water in 2015; when it is estimated that Irish Water will cover its own running costs; and if he will make a statement on the matter. [46318/14]
View answer558. Deputy John McGuinness asked the Minister for the Environment, Community and Local Government the person who will fund any shortfall in the revenue generated from Irish Water; the expenditure required to run Irish Water; and if he will make a statement on the matter. [46319/14]
View answerI propose to take Questions Nos. 557 and 558 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. Irish Water has incurred €155.7 m in establishment costs to the end of October 2014. In addition to establishment costs, in 2014, Irish Water has incurred operational costs of €591.2 m and capital expenditure of €463.4 m to the end of October.
Details of Irish Water’s costs are outlined in their 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.
The CER imposed an annual efficiency challenge of 7% on Irish Water’s costs as submitted and following the Government announcement of 19 November, an adjustment to operational costs will be made to reflect the proposal that water services infrastructure will be exempt from commercial rates. A note on the financing of Irish Water in 2015 and 2016, reflecting this position, has been published on my Department’s website - http://www.environ.ie/en/PublicationsDocuments/FileDownLoad,39557,en.pdf.
Irish Water’s costs 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 capital, operational subvention and working capital loans.
