Water Charges Introduction

Dáil Éireann Debate, Wednesday - 12 March 2014

Wednesday, 12 March 2014

Ceisteanna (10, 51)

Bernard Durkan

Ceist:

10. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government when he expects to be in a position to indicate the level of water charges applicable per household or per family throughout the country with particular reference to the need to ensure that such charges are pitched at a level at which the householder can afford; the extent to which he expects favourable comparison to be made with the level of charges applicable in adjoining jurisdictions; and if he will make a statement on the matter. [11888/14]

Barry Cowen

Ceist:

51. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if the water charging tariff structure for businesses will be changed; and if he will make a statement on the matter. [11881/14]

Freagraí ó Béal (11 píosaí cainte)

Deputy Bernard J. Durkan

This relates to the concern and anxiety in some quarters for young families, individuals and older persons arising from the predictions made by some commentators to the effect that water charges will be prohibitive and penal. My question is self-explanatory.

Deputy Phil Hogan

I propose to take Questions Nos. 10 and 51 together.

With effect from 1 January 2014, Irish Water is responsible for public water services. As the House knows, the Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services.  The Act also provides that responsibility for the independent economic regulation of the water sector is assigned to the Commission for Energy Regulation, CER, and that CER has been given statutory responsibility for protecting the interests of customers.

Domestic water charges will commence with effect from 1 October 2014 and Irish Water will issue the first bills to domestic customers from January 2015. The approach to charging will be outlined by Irish Water in a water charges plan to be submitted by it to CER in line with the provisions of the Act. CER will be responsible for approving the water charges plan which will set the approaches to charging domestic and non-domestic customers. CER has indicated that in April 2014 it will be carrying out a number of public consultations, including the approach to the design of domestic water tariffs for both metered and unmetered properties, and the final announcement in regard to water charges will be made in August 2014.

The Government has committed to the provision of a free allowance, above which charging based on usage would apply. The free allowance and the level of funding to be provided by the Government to Irish Water will have a strong bearing on the net charges to be met by households. Consequently, decisions on these matters will provide greater visibility on the expected level of charge. I expect to bring proposals to Government in this regard shortly. Part of the consideration will be the work of an interdepartmental working group established to advise the Government on the appropriate method for addressing affordability issues which may arise with the introduction of local domestic water charges, in particular the concerns of families with children and single people, as indicated by the Deputy in his question.

Local authorities have been instructed to continue with all their current charging tariffs for non-domestic customers on behalf of Irish Water pending the approval by CER of the water charges plan.

Deputy Bernard J. Durkan

I thank the Minister for his comprehensive reply. I want to raise further the extent to which it is envisaged at this stage that the basic water allowance will be adequate to meet a portion of the requirements in a particular household, be it a family household, a single person or an older person. To what extent will it be possible to take into account the financial circumstances in cases where the charge, being a new charge, is likely to impact significantly on the household?

Deputy Phil Hogan

All of those factors in regard to affordability and the free allowance will be taken into account when the final decisions are made by CER, but equally when the decisions are being made by Government, in particular in regard to people with medical need who have a higher consumption, for example, those using kidney dialysis, as well as children and elderly people who are living alone.

Deputy Barry Cowen

I note the answer to this question is not much different from the answer to my initial priority question. Again, I am disappointed that the Minister's submission has not yet been made to CER. I am also disappointed that I have not yet had access to it but I await its publication in a matter of weeks, as the Minister said, although I would have thought it would be in a matter of days considering how long this has been going on.

The Minister said there is an intergovernmental report that will determine what is contained within his submission. Am I to divine from this that he has sought input from other Ministers who have a responsibility, not only at Cabinet but by virtue of the Departments they represent? For example, to arrive at a free allowance, I presume the Department of Social Protection would have a role, and other Departments, including perhaps the Department of Jobs, Enterprise and Innovation, in regard to the first fix policy. Obviously, the level of Exchequer subvention would emanate from the Department of Public Expenditure and Reform or the Department of Finance.

If that is the case, will the Minister make public the information that has been derived from that intergovernmental group and the relevant Departments contained within it? Will they too make a submission or will it simply be formulated and put into the mix for the Minister's submission? That being the case, will the Minister publish the information he received from those Departments?

Deputy Phil Hogan

The Deputy's assessment is correct. I will publish it in the context of the Government decision in due course.

Deputy Barry Cowen

In due course? At this stage, we would like to be a little more precise than "in due course". I know the Minister is heading out of the country, along with a lot more of them-----

An Ceann Comhairle

Will the Deputy resume his seat and allow the Minister to reply?

Deputy Barry Cowen

He may be heading out of the country again a few weeks after that. There was an indication that Deputy Durkan and others would have this information before St. Patrick's Day.

Deputy Bernard J. Durkan

We want to reassure the people.

Deputy Phil Hogan

I only go out of the country when I am doing my job, and I am sure it was the same with my predecessors. As I have said to the Deputy, in the next couple of weeks he will get all the information regarding the free allowance, affordability measures and all of the submissions we made, including the interdepartmental working group document to which he referred. That is what I have just said.

Question No. 11 replied to with Written Answers.