Brian Stanley
Ceist:157 Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the cost of funding the establishment of Irish Water; and the way that it is to be funded. [31327/12]
Amharc ar fhreagraThursday, 28 June 2012
Ceisteanna (153)
Freagraí scríofa
The Government decided in December 2011, based on the recommendations of an independent assessment, to establish a public water utility company, Irish Water, to take over the operational and capital delivery functions of local authorities in the water services area. Following further consideration as to whether Irish Water should be established as a new entity or whether existing bodies in the semi-State sector could undertake the function, the Government decided that Irish Water should be established as an independent State-owned company within the Bord Gáis Group. A detailed breakdown for the cost of establishing and running Irish Water is not at present available. The Department is currently finalising the implementation strategy for the water sector reform process will focus on implementation and transformation issues and will give further clarity on the next steps that will be taken in this reform process.
The move of water sector functions from local authorities to a semi-State company operating in a regulatory environment, and the new funding regime which will include the introduction of domestic water charges in due course is a major organisational change. The setting of water charges, both domestic and non-domestic, will be a matter for the regulator within an overall policy and pricing framework which will be developed by the Government. Irish Water will have the power to collect water charges which will provide an income stream to support third party funding through accessing funding on financial markets with a view to Irish Water becoming self funding over time. The new funding model will also be influenced by ongoing capital requirements for investment; operational costs; efficiency gains arising from the new organisational form; levels of government funding; and the new utility's ability to access funds on financial markets.
With regard to future funding requirements for Irish Water, this will be determined through engagement with the economic regulator on the level of charges, securing of operational efficiencies and the appropriate level of capital investment, and the extent to which Irish Water will be able to access financial markets to fund its investment programme. The nature and duration of continuing Government funding will be determined as part of the budgetary and estimates process within this context.