I propose to take Questions Nos. 185 and 197 together.
Article 9 of the Water Framework Directive of 2000 requires Member States to take account of the principle of recovery of the costs of water services, in accordance with the principle of "polluter pays". Article 9(4) of the Directive states that Member States are not in breach of the Directive if they decide in accordance with established practices not to apply the provisions of the recovery of costs for a given water-use activity, where this does not compromise the purposes and the achievement of the objectives of the Directive.
While this may have been referred to at the time as providing the basis for not charging for domestic water services , the introduction of such charges has subsequently been grounded, primarily, in, firstly, the confirmation by the 2007-2011 Government of the intention to charge in the first round of River Basin Management Plans developed in compliance with the Directive and adopted in 2010 and, secondly, the commitment entered into as part of the Programme of Financial Support for Ireland (2010-2013) agreed between the previous Government and the EU/ECB/IMF. The question of continuing an exemption under the Directive before the end of the year therefore does not arise.
The Programme for Government commits to introducing a fair funding model to deliver clean and reliable water and establishing a new State-owned utility to take responsibility for water infrastructure. The new more sustainable funding model being put in place through the establishment of Irish Water will allow for the investment required to ensure our water infrastructure can meet demographic and economic needs and comply with the requirements of the Water Framework Directive in relation to the water environment.
In line with Government policy, and the provisions of the Water Services (No. 2) Act 2013, Irish Water can collect charges from its customers in receipt of water services provided by it. The package of measures which I announced on 19 November 2014, provides clarity and certainty and ensures that water charges are affordable for customers. Legislation is currently before the Oireachtas to underpin this package of measures.