Dáil Éireann Debate, Tuesday - 28 June 2016
214. Deputy Eoin Ó Broin asked the Minister for the Environment, Community and Local Government if he will provide a breakdown of the composition of the €522 million, including what portion is expected to come from Exchequer funding and what portion from Government borrowing or equity or debt financing, regarding the €522 million allocated for Irish Water capital investment in 2016, as per the Irish Water business plan, in tabular form. [18357/16]
View answer215. Deputy Eoin Ó Broin asked the Minister for the Environment, Community and Local Government if he will provide a breakdown of the composition of this €533 million, including what portion is expected to come from Exchequer funding and what portion from Government borrowing or equity or debt financing, regarding the €533 million allocated for Irish Water capital investment in 2017, as per the Irish Water business plan, in tabular form. [18358/16]
View answerI propose to take Questions Nos. 214 and 215 together.
Irish Water’s capital investment in the period 2016 and 2017 will be funded by a mix of debt and equity (including capital transfers from Government), with the investment programme for the period after end 2016 being subject to future review by the Commission for Energy Regulation, and Government funding being subject to future budgetary decisions.
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 at http://www.environ.ie/sites/default/files/migrated-files/en/Publications/Environment/Water/FileDownLoad%2C39557%2Cen.pdf.
The capital contribution agreed by Government for Irish Water in 2016 is €184m and this has already been paid to Irish Water to support its increased investment in public water services infrastructure. In addition, the Government is providing €479m in operating subvention to Irish Water 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. Provision has also been made for the issue of a working capital loan of up to €58m in 2016 to cover cash flow requirements arising from time lags between billing and payment.
Irish Water's revenue shortfall arising from the proposed suspension of domestic water charges in 2016 is currently under consideration. I intend to bring my proposals on this matter to Government shortly.
