Council shortfall may mean big bill for rate-payers

Rate-payers may be left with hefty bills if a planned new super-authority does not reimburse Cork County Council for major multi- million euro sewerage and water projects.

Cork’s county manager Martin Riordan and county engineer Noel O’Keeffe are both concerned Government plans to reform water and sewerage services throughout the country, under the umbrella of Irish Water, could have serious implications for local authorities.

Cork county council, one of the country’s largest local authorities, is concerned a €30m investment will not be recouped when the new water body takes control.

The council is well advanced, with a number of major schemes in Cork’s lower harbour area and east Cork that could cost in the region of €70m to €90m.

It is expected Irish Water will be established next summer, but will not take over all national operations for a further two years.

In the meantime, local authorities will act as its agents.

Mr Riordan said, in the interim, the council will have to borrow money to sign multi-million euro contracts for projects with no guarantee that Irish Water will take over these liabilities.

Mr O’Keeffe said Cork’s lower harbour waste water treatment scheme, embracing areas such as Passage West, Cobh and Carrigaline, is expected to cost in the region of €90m. The council would be obliged to pay 30% of the cost.

The council is also preparing to invest a similar percentage in the €20m Youghal main drainage scheme.

“We can’t afford to borrow over €30m for the lower harbour scheme without being sure that it is going to be Irish Water, and not the rate-payer, who will ultimately pay the bill,” Mr Riordan said.

Staff will also be seconded from the local authority to work for Irish Water.

Mr Riordan also expressed concern major pharmaceutical industries in the lower harbour may face increased bills for their water charges when Irish Water takes over.

The companies pay millions of euro every year for water and waste water services. However, the council last year dropped its charges for these services by 3%.

“The department says we should put up our water charges, but I say no,” Mr Riordan said.

He said a regulator would be appointed for Irish Water to set water charges and he was concerned there was no indication as of yet as to whether that person may set different regional charges, or one national charge.

“We have a major cluster of pharmaceutical companies in Cork. We have to have certainty about charges, but it looks like they are going to go up,” the county manager said.

Mr Riordan said that, up to now, it was the council which set the charges and it was also the council which dealt with planning applications when foreign companies approached it through the IDA.

Meanwhile, it is expected work will start on metering the country’s 1.15m private homes at the beginning of next year.

Mr O’Keeffe said the work was likely to take two years to complete and the billing system would, most likely, be taken over by Irish Water.

The closing date for the public to make submissions about Irish Water is this Friday.

Submissions should be sent to the Water Services Section, Department of the Environment, Custom House, Dublin 1.

* Clarification: An article in yesterday’s Irish Examiner incorrectly referred to drinking water in the Cork Harbour area not being up to EU and national standards. The article should have referred to “waste water” rather than “drinking water”.