Dublin City Council is seeking €17.5 million from the Government for commercial rates the council claims are owed on infrastructure taken over by Irish Water.
The rates bill relates to the city’s water and drainage network. Before the establishment of Irish Water, developing and maintaining this network would have been funded through the council’s capital budget and formed part of the council’s assets.
From January 1st last year these rates became the responsibility of Irish Water, which also took over the water assets and the income from non-domestic water charges.
Irish Water paid commercial rates to local authorities last year. However, last November the Government changed the system and exempted Irish Water from paying rates for “any land or infrastructure used for the provision of public water services”.
Local Government Fund
Instead, the Government decided to use the Local Government Fund to compensate councils for the lost income.
Dublin City Council had drafted its 2015 budget when the decision to exempt Irish Water from rates was made and had included a sum of €17.5 million in expected rates income on the water and drainage network. In February it wrote to the Department of the Environment seeking payment. The bill remains unpaid.
A spokesman for the department said it would shortly be issuing a circular to all local authorities asking them to submit claims.
Independent councillor Ruairí McGinley said: “I am very concerned that this circular is going to contain bad news for Dublin City Council. If the Department of the Environment does not pay this bill in full, the council will be left at a financial loss as a result of the transfer to Irish Water,” he said.
