Vol. 442 No. 3
6 Mr. Barrett asked the Minister for the Environment the way in which he intends involving the private sector in the provision of water services; if it is intended that private sector investment will replace much of the moneys previously provided by the Exchequer; and if he will make a statement on the matter.
10 Mr. Gilmore asked the Minister for the Environment if the Government is considering a proposal to establish a joint venture company between the public and the private sector to build and maintain public water systems; the plans, if any, he has to provide for the metering of water supplies to homes; and if he will make a statement on the matter.
34 Mr. R. Bruton asked the Minister for the Environment the reason for the change in policy in relation to the funding of capital sanitary services projects where local authorities are now being expected to fund a high percentage of the cost heretofore funded by central Government; and if he will make a statement on the matter.
114 Mr. Barrett asked the Minister for the Environment the reason for the change in policy in relation to the funding of capital sanitary services projects whereby local authorities are now being expected to fund a high percentage of the cost which heretofore were funded by central Government; and if he will make a statement on the matter.
I propose to take Questions Nos. 6, 10, 34 and 114 together.
The provision of drinking and waste water services is extremely costly, and, traditionally, these costs have been borne by the Exchequer and local authorities. It is right that the services should be continually examined with a view to cost-effectiveness and that this examination should extend to conservation options, such as leak detection programmes and use of metering. While some changes have been implemented in the system of capital financing of water services, the Exchequer still provides by far the greatest part of this financing. Some non-Exchequer capital financing has always been a feature of the water services programme. This now arises in connection with group water schemes, small public schemes and certain other public schemes where the proceeds of industrial contributions, development levies or other local contributions may appropriately be applied.
There is no intention that private sector investment should replace moneys currently provided by the Exchequer for the provision of water services. The National Development Plan does however, envisage the possible augmentation of water services programme through private sector contributions.
There is a number of possibilities in this regard. One is the more systematic application of existing policies whereby capital contributions are either required from industries to whom a major part of a scheme's capacity is dedicated, or are procured by way of development levies under the planning Acts. A number of important schemes are now proceeding on this basis, and local authorities generally have been advised of the need to seek industrial or developer contributions in appropriate cases.
I have also asked my Department to examine the possibility that private investors might become involved in major water services projects. For example, a company could undertake to design and construct a facility to meet specified performance standards, to finance the facility, to operate it for an agreed period, and subject to agreed arrangements as to payment, hand the plant over to the local authority.
In a statement he made around 13 April, the Minister said that the public cannot expect to get water free for much longer. He told us we had no right to regard the provision of water supplies as something we should get for nothing. He was effectively saying that he was considering privatising water supplies. I remind the Minister that the public is already paying for water through central taxes, water charges and various other payments such as commercial rates. Will the Minister state clearly that he will abandon any suggestion that water, which is in abundance in this country, will be privatised and that the public will not be expected to pay more for the supply of water? Any suggestion that the Government intends to privatise water supplies should be scrapped immediately. I want to hear the Minister say here that there is no question of the privatisation of water supply. I am surprised at the Labour Party going along with that proposal.
I have no hesitation in giving a commitment to the House that there are no such proposals or intentions and I am not out to privatise water supplies. During the past four or five years, of the order of £400 million was spent in the provision of water and sewerage throughout the country. Over the period of this plan that figure will grow to over £600 million. Notwithstanding that unparalleled investment from EU funds and domestic sources, there is considerable demand for a further extension of those infrastructural projects. I have sought EU funds for group water schemes, which have been privately funded for many years. In relation to dedicating parts of schemes for industry, we have had success with INTEL, Fruit of the Loom, General Instruments and other schemes where industry is being asked, in circumstances where they benefit considerably from the new or augmented scheme, to contribute towards it. It is extraordinary that there should be opposition in circumstances where unparalleled State investment is being made in these services and where the Minister for the Environment is trying to accelerate the provision of services where they are desperately needed in invoking contributions of this kind.
There is no opposition——
Order, time is fast running out for Priority Questions today and I am anxious to dispose of the remaining question, No. 8 in the name of the same Deputy.
Nobody is objecting to developers making a contribution towards the supply of major services but the Minister clearly indicated in his statement that householders need no longer hope to get water for nothing.
Yes.
We are not getting it for nothing. We are paying for these services through central taxation and services charges and the local authorities collect rates from the commercial sector. Will the Minister get it out of his head that people are getting water for nothing? Will he scrap the idea of privatising the water service, imposing further taxation on people who are already overtaxed?
Scrapping an idea that does not exist is no problem. The Deputy questioned my statement that we cannot expect to have a water supply free of charge. We do not have a free water supply and we will not have it.
From the environmental viewpoint there are good reasons to conserve water. There is very considerable wastage in some systems and this needs to be managed. We are trying to accelerate these programmes by engaging interested sector companies, industry and local bodies.
