Dáil Éireann Debate, Tuesday - 12 February 2008
632 Deputy Martin Ferris asked the Minister for the Environment, Heritage and Local Government the formula his Department uses to assess the financial contribution of local authorities towards capital water and sewage schemes based on the EU water framework directive; and if this means that there is no flexibility in the level of contribution requested from a local authority to the capital cost of these schemes. [5222/08]
Amharc ar fhreagra633 Deputy Martin Ferris asked the Minister for the Environment, Heritage and Local Government his views on the serious impact on businesses and development across the State, through increases in the development contribution scheme and other charges, if the levels of financial contribution from local authorities towards the capital cost of major water and sewage schemes currently being sought by his Department are not revised and reduced significantly. [5223/08]
Amharc ar fhreagraI propose to answer Questions Nos. 632 and 633 together.
Development contributions are a key mechanism in ensuring that the local community gains from new developments. Section 48 of the Planning and Development Act 2000 provides that planning authorities may levy development contributions in respect of public infrastructure and facilities provided by, or on behalf, of the authority that benefit development in the area, based on a scheme of contributions adopted for the area. The Act requires planning authorities to base the contributions levied on the actual estimated cost of providing the infrastructure in question. Development contribution schemes are adopted by the elected members of planning authorities after a public consultation process. This approach has been endorsed by the Oireachtas in the context of the enactment of the 2000 Act.
In May 2007 my Department published a report arising from the deliberations of an Inter-Departmental Committee on Development Contribution Schemes. This report was also accompanied by a guidance circular to all planning authorities which focused on a number of key issues identified by the Committee. Authorities were reminded of the need for extensive consultation with stakeholders in drawing up and administering schemes, the importance of openness and accountability, and the importance of achieving a balance between an appropriate level of development contribution charges and the need to attract future investment into their areas.
In accordance with the EU Water Framework Directive, water services authorities are required to recover the cost of providing water services from the users of these services, on the basis of average operational and marginal capital costs, with the exception of households using water services for domestic purposes, and subject to the special transitional arrangements for recognised schools, which were recently approved by the Government. The recovery of the cost of providing water services to the non-domestic sector is achieved by means of meter based volumetric charges; metering of the non-domestic sector for this purpose is expected to be completed by mid-2008.
All projects funded under my Department's Water Services Investment Programme require that the marginal capital cost of servicing non-domestic consumers should be met by the non-domestic sector. Marginal capital cost is calculated on the basis of existing and future non-domestic capacity requirements which vary from scheme to scheme. Non-domestic marginal capital costs are recovered by a water services authority from all non-domestic consumers in its functional area (i.e. on a county-wide basis) through a combination of water charges on non-domestic customers and development contributions.
