Dáil Éireann Debate, Thursday - 17 November 2016
148. Deputy Thomas P. Broughan asked the Minister for Housing, Planning, Community and Local Government the value of Irish assets and infrastructure that have been signed over to Irish Water to date; and if he will make a statement on the matter. [35516/16]
View answerThe information requested is being compiled and will be provided to the Deputy in accordance with Standing Orders.
The following deferred reply was received under Standing Order 42A
With effect from 1 January 2014, Irish Water is responsible for public water services. The Water Services (No. 2) Act 2013 provided for a range of matters consequent upon the transfer of functions in relation to public water services from local authorities to Irish Water. Section 12 provides for the transfer from the local authorities to Irish Water of property and moneys received in accordance with section 48 or 49 of the Planning and Development Act 2000, namely, development levies which can only be expended by Irish Water in the functional area of the local authority concerned.
Valuation of the water-related assets in local authority accounts and in the accounts of Irish Water are based on different applicable accounting standards and systems. In the case of the local authorities, the valuations are historical less depreciation whereas in the case of Irish Water, the value attributed to opening property, plant and equipment is based on the future return provided for in the regulatory regime which consists mostly of liabilities linked to opening assets assumed by Irish Water, for which the Commission for Energy Regulation has allowed a future return.
Insofar as the physical water related assets are concerned, the net book value reflected in the Annual Financial Statements of the local authorities was €11.4 billion and €1.1 billion, at the end of 2013 and 2014, respectively, with the bulk of the change reflecting the transfer of assets to Irish Water.
Work is underway between Irish Water and the local authorities in relation to the identification and quantification of water-related financial assets/liabilities. Final agreement on the liability to transfer to Irish Water, including financial assets, liabilities and debtors, will be by way of balancing statements agreed between Irish Water and local authorities. I understand that balancing statements have been agreed between Irish Water and 23 local authorities accounting for an overall net asset value transferring to Irish Water of over €67m. Negotiations between Irish Water and the 8 remaining local authorities are at an advanced stage.
