Wednesday, 14 May 2014

Ceisteanna (62)

Róisín Shortall

Ceist:

62. Deputy Róisín Shortall asked the Minister for Finance the extent to which the expected yield from domestic water charges in 2015 affects the necessary budgetary adjustment in budget 2015. [21639/14]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

As revenue arising from water charges will go to Irish Water, a State owned commercial company, it will not benefit the Exchequer or count as general government revenue.  Accordingly, it is not relevant to the calculation of the general government deficit for 2015.

The establishment of Irish Water is a long-term investment project to deliver the necessary water services infrastructure and quality of services required to meet statutory compliance and demographic need.  After the transitional phase in the establishment of Irish Water, the company's operational and capital costs of development of water and waste infrastructure will be funded from its revenue and own resources, which implies lower ongoing costs and borrowing needs for the State in the longer term.