asked the Minister for Transport and Power if he is aware that 12 householders in the townlands of Derryvereada and Derryvealowaums, Connemara, County Galway were quoted a total of £630 plus VAT as a capital payment for the installation of electricity in 1973 and that the quotation in April 1975 seeks a capital contribution of £12,000 plus VAT; and, if so, if he will explain why the cost increased by approximately 2,000 per cent in the two years.
Ceisteanna—Questions. Oral Answers. - Rural Electrification.
17.
I am informed by the ESB that the houses involved are included in the board's Clifden rural area.
Subsidised terms for connection to the electricity supply were quoted in July, 1973, to the 12 householders involved as the area was then being developed under the subsidised rural electrification scheme. The terms quoted to each of the 12 applicants included a capital contribution of £56.02 and the payment of a special service charge every two months. These terms were based on an overall cost of £9,250 for extending supply. The terms quoted at that time were not accepted and supply was not extended. The Clifden rural area is now closed to subsidised supply and subsidised terms are no longer available. The present estimated overall cost of extending supply is £12,000 which represents an increase of 29 per cent in costs compared with the 1973 figure and the unsubsidised terms would be based on this cost. In closed areas, special service charge arrangements do not apply and the cost of extending supply is payable by means of a capital contribution.
The extension of supply in these cases would involve the erection of 5.6 kilometres of high tension line, one kilometre of low tension line and four transformers together with meters and services.
Could the Minister hold out any hope whatever to these people that in the near future they will get electricity? If so, could he say how they will be able to afford it?
They can get electricity at any time on the terms quoted to them—£12,000 among 12 connections. I am at present trying to devise a scheme to help people living in isolated areas and in rural areas in the case of new houses where the cost of connection is high. In fact, I have completed my input to that scheme and it is at the moment with the ESB awaiting their comments.
In the light of the fact that VAT was charged on capital installations since 1973, in this particular scheme, does the Minister agree with the policy of the ESB of charging VAT on fixed charges which, apparently, would relate to capital outlay on installations made much earlier than VAT was introduced?
The charging of VAT is a matter for the Department of Finance under the relevant Finance Bill. It was decided then that VAT should be charged in each case and that has been done since.
I asked the Minister for Finance that question on a supplementary a few weeks ago and he passed the buck to the Minister for Transport and Power. I must now go back to the Minister for Finance to know how the ESB can justify charging VAT on fixed charges in relation to capital outlay on installations installed long before VAT was introduced.
I was not present on that occasion and I do not know what the Minister for Finance said.
I thought the Minister was in the same Government and the same party.
I was not present here when the Minister said that. Provisions regarding charging of VAT were agreed by this House in the Act introducing VAT.
Arising out of the Minister's reply indicating that his Department have made recommendations regarding some alternative means of funding these charges, when does he think the ESB may make some suggestion? What hope can he offer those who are unable to pay these charges?
I could not say, but I hope it will be soon.
Could the Minister say what he would consider to be a reasonable contribution for people in isolated areas, in the light of the investigation in his Department?
I could not say.
These charges are not only savage in rural areas but also in the towns and cities. In my own area recently, in a local authority scheme of 300 houses each house had to face a connection charge——
This is a specific question dealing with Connemara.
The rural electrification scheme applies only to houses in rural areas and it is the people who were not covered by that scheme that I am now considering.
18.
asked the Minister for Transport and Power when rural electrification will be extended to Illaninagh, Gurteenfluigh and other adjacent areas, Ballingeary, Macroom, County Cork.
I am informed by the ESB that Illaninagh, Gurteenfluigh and other adjacent areas are included in the board's Inchigeela and Ballingeary rural areas. Development work under the final phase of the subsidised rural electrification scheme is due to commence in Inchigeela rural area, which includes Illaninagh and Gurteenfluigh, in September next. Development work in Ballingeary rural area is expected to commence in January, 1976.