Irish Water revised funding test
Deputy Cowen asks what contingency exists if the revised water-charges model fails its assessment. The Tánaiste says the independent EUROSTAT test is expected next spring and believes non-government income will exceed the required 50%.
The bottom line, I gather from the Tánaiste's response, is that yesterday's package, including the revised model, has not passed the market test. It remains to be seen whether it will, but people are entitled to know what plan B is in the event of its not passing that test. I suppose it is not plan B, considering the Government has had ten U-turns since this debacle commenced.
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Exactly. We have almost passed the middle of the alphabet. If it is not passed, what is plan B? Will we go back to the previous model? Will we go back to the regulator's price, rather than what the Government brought forward yesterday?
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I will use the example of tests in life. Almost all of us here at one time or another have put our cars through the national car test. Many of us have also sat the leaving certificate and other examinations. The Deputy is asking me to predict the outcome-----
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-----of a test run by an absolutely independent body. Both EUROSTAT and its Irish equivalent, the CSO, which calculates statistics here, are absolutely independent.
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I am saying, let us not drive the car without knowing whether we have passed the NCT.
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I am sure Deputy Mattie McGrath recalls the period when Greece was in serious difficulties, particularly from May to June 2011. One of its big problems was that EUROSTAT decided it did not have full confidence in its figures. EUROSTAT is absolutely independent, and I know the Deputy is not suggesting it should not be independent.
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I anticipated that my car would pass the NCT, but it did not.
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The Deputy is asking for the answer to a test that will not be done by EUROSTAT until it decides to do it. We anticipate that it will carry out that test or examination sometime next April or around the end of the first quarter. We are confident because we have the figures here.
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To help Members of the House, the test is whether or not there is a stream of income in excess of 50% of the total funding that is other than Government funding. The Government subvention of Ervia or Irish Water is 44% and, therefore, we should more than comfortably pass the test. I am satisfied that we will actually pass the test.