Dáil Éireann Debate, Thursday - 17 December 2015
595. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government to outline in detail the moneys transferred to date or committed to Irish Water as investments on behalf of the State; and if he will make a statement on the matter. [45982/15]
View answer597. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the level of equity capital he expects to have to provide Irish Water to meet its requirements; and if he will make a statement on the matter. [45984/15]
View answerI propose to take Questions Nos. 595 and 597 together.
Irish Water's costs are 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 main aspects of the Irish Water funding model are set out in a detailed fact sheet published on my Department’s website.
In July 2014, a capital contribution of €185m was provided to Irish Water and a further €54m was provided through the issue of a Convertible Loan Note to the Minister for Finance in November 2014. The capital contribution agreed by Government for Irish Water in 2015 and 2016 is €406m. This financing is intended to support increased investment in public water services infrastructure by Irish Water. €222m in respect of 2015 was provided to Irish Water in December 2014 and the remaining €184m is due to be provided in 2016.
In addition, the Government has provided €399m in operating subvention to Irish Water in 2015 and will provide up to €479m in 2016. This subvention is in respect of the child allowance of 21,000 litres per child per annum, a product subsidy and the capping of domestic water charges at the rates set out in the Water Services Act 2014.
Finally, provision has been made for the issue of working capital loans in 2015 and 2016 to cover cash flow requirements arising from time lags between billing and payment. This amounts to €96m in 2015 with provision for up to €58m in 2016.
