PAC to examine PPPs and funding to local authorities

5 December 2012

The majority of Exchequer funds going to local authorities flows through the Department of Environment. The pertinent issues for the Committee are as follows: compliance with the EU Urban Waste Water Treatment Directive and social housing especially in terms of the stock of social housing units and future liabilities. The Household charge is within the remit of the Department as well as ghost estates and septic tank registration.

Committee Chairman John McGuinness said: “Expenditure by local authorities in 2010 – the last year for which information is available – is estimated at €7.7 billion, which comprised around €2.9 billion in capital expenditure, and a €4.8 billion in current expenditure. In addition to what was spent by Local Authorities, in 2011, €742m was spent through the Department of Environment Vote on housing initiatives; €429m was spent on water services and €18m on planning.

There are a number of key issues which the Committee would like to address: What procedures have been implemented, or are planned, to deal with the 18 plants which currently do not comply with the 1991 EU Urban Waste Water Treatment Directive? What percentage of water treated is lost through leakages and what is the associated cost of this? We will also be keen to explore what responsibilities will remain with the Department for water services now that Irish Water has been established.

The Department has not quantified what contingent liabilities exist in terms of affordable housing under the now discontinued scheme whereby local authorities could obtain 20% of new developments for social and affordable housing and we will want to find out the reasons for this.

Other matters we will examine are: the collection rates for commercial rates and water charges; plans to deal with ghost estates; the Department’s role in the collection of the household charge; and registration of septic tanks.”

Two Public Private Partnership agreements were entered into in 2010 by local authorities (under the remit of the Minister for the Environment) – Portrane/Donabate/Rush/Lusk Waste Water Treatment Plan and Tullamore Waste Water Treatment Plant – and two – Letterkenny Waste Water Treatment Plant and River Barrow Water Treatment Plant – in 2011. These were in relation to water/waste water treatment plants.

Deputy McGuinness said:  “We will be focussing on how the decisions to enter a PPP are made, monitoring of costs and staying within budget. How does the Department monitor the project spend when it is underway? Of projects finalised in recent years, do they generally come within budget? How are performance and maintenance standards monitored? How many PPPs does the Department currently have in the pipeline?”

This meeting starts at 10am on Thursday, 6th December in Committee Room 1, LH 2000.

Committee proceedings can be followed live here.

For further information please contact:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551”