Latest news with #StrategicFundingPlan
Irish Examiner
4 days ago
- Business
- Irish Examiner
Hotels warn 'unsustainable' increase in water charges threatens survival of businesses
Plans to increase water charges for hotels are "unsustainable" and threaten the survival of many businesses, industry representatives warn. The Commission for Regulation of Utilities (CRU) to approve a 9.8% across-the-board increase in water charges for non-domestic and wastewater following a proposal from Uisce Éireann. The increases will come into effect from October 1. The Irish Hotels Federation voiced "serious concerns" over the regulator's decision and said the increase follows an average hike of 30% in water charges for hotels compared to this time last year. 'This is yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses," said IHF president and owner of Cork's Vienna Woods Hotel, Michael Magner. "Over a two-year period, the average 70-bedroom hotel in Ireland will have seen an increase of over 40% in water tariffs. This is unsustainable given the exceptionally challenging environment in which hotels and other hospitality businesses are currently operating.' Mr Magnier said that as a major consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb. "The cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector." Uisce Éireann charges non-domestic customers for supplying water to their premises. "The charges customers pay are determined under Uisce Éireann's Non-Domestic Tariff Framework," said the CRU. "The ministerial-approved Strategic Funding Plan 2025-2029 suggests that there is a need for €16.9bn in Uisce Éireann's funding over the five-year period, to deliver Uisce Éireann's capital programme and recover its operating costs to achieve critical outcomes for customers and communities." Mr Magner said is now imperative that the Government tackles these increases head on and delivers targeted measures to enhance cost competitiveness and support business viability. 'We are particularly concerned about the potential for further annual increases through to 2029, including the ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland. We are calling for a fairer funding model that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs.'
Irish Examiner
01-07-2025
- Business
- Irish Examiner
Uisce Éireann warns of 'critical constraints' in water capacity
Uisce Éireann has warned that its capacity to serve could hit critical constraints resulting in housing delivery coming to a standstill in the next few years. Concerns were raised at the Oireachtas housing committee that housing delivery could be stymied in the next three or four years as the water utility urged for the situation to be treated as an emergency. The committee heard that an additional €2bn — paid out over five years — would be required in order to deliver on the Government's housing targets. Uisce Éireann's Strategic Funding Plan had set out a requirement of €10.3bn investment in capital infrastructure based on the Housing For All targets of 33,000 new homes per year for 2025 to 2029. "The Government has now moved to increase national housing targets by 17,000 additional units a year to 2030," CEO of Uisce Éireann, Niall Gleeson said. The challenge for infrastructure providers like Uisce Éireann is to work out how we can mobilise our workforce, funding, processes and supply chains to support these targets on top of our existing obligations. Mr Gleeson said Uisce Éireann "is not a housing delivery body" but is tasked with ensuring the provision of water and wastewater infrastructure for the construction of new developments and for the homes when they are completed. The Dublin area in particular is "running out of road" in terms of headroom and that projects in Dublin and the Eastern and Midlands region are on the cusp of critical phases, the committee heard. "Until we address the challenges highlighted in planning, consenting and funding, Uisce Éireann remains concerned about the level of risk in these projects," said Mr Gleeson. With the demand outstripping the supply in Dublin on certain days already this year, it was warned that the area could be one fine day away from the introduction of water restrictions. Funding is just one element that is needed to deliver the big and small projects that need to be delivered. Infrastructure projects need to be prioritised when it comes to planning, the process needs to be streamlined and the committee heard that when it comes to consent, there is an element of 'nimbyism' (not in my back yard). Mr Gleeson told the committee that the utility has "consistently advocated for an urgent approach" to addressing the issues facing infrastructure projects and reiterated the need for a sense of urgency. Read More Ireland facing sand and gravel shortage due to planning delays, industry warns
RTÉ News
06-05-2025
- Business
- RTÉ News
SF calls for clarity over capital funding to Uisce Éireann
The Government must clarify urgently what capital funding is being provided to Uisce Éireann, according to Sinn Féin. The party's housing spokesman, Eoin Ó Broin, claims that the coalition has been "caught out again misleading the public". The assertion follows a report in The Irish Times which states that a budget day announcement of an extra €1 billion for the water utility to support increased housing supply was not actually additional funding. The article is based on a freedom of information request, which reveals correspondence between the then minister for housing Darragh O'Brien and chairperson of Uisce Éireann, Jerry Grant. The Sinn Féin TD for Dublin Mid-West says a letter from Mr Grant makes it clear that "the €1bn is not additional expenditure, but rather an alternative financing mechanism to cover existing commitments". Mr Ó Broin is now calling on the Ministers for Finance, Public Expenditure and Housing to explain themselves. In a statement today, Uisce Éireann said: "The last Government announced an additional €1bn of funding for water services as part of Budget 2025. "Following that announcement, Uisce Éireann sought clarity from the Department of Housing, Local Government and Heritage on how this funding was to be accessed. "The department confirmed that the money was to be used towards our pre-existing capital funding requirements from 2025 to 2028, comprising of €700m for deemed non-domestic capital investment and €300m for domestic capital investment. "The €1bn funding announced as part of Budget 2025 is therefore incorporated in the €16.9bn requirement in Uisce Éireann's Strategic Funding Plan." Uisce Éireann added: "We are seeking a further €1.7bn to 2029 in ring-fenced funding to build infrastructure to enable housing and economic growth in key strategic development." In a statement issued by the Department of Housing on 1 October last year, the then housing minister, Darragh O'Brien, said: "In addition to the €1.7bn for Uisce Éireann next year in 2025, we have secured an equity investment of €1 billion for Uisce Éireann to support the delivery of their Capital Investment Plan for 2025-2029. "This continued investment in public water services capital infrastructure will be vital to support future housing delivery." During his budget speech in the Dáil last October, then minister for finance Jack Chambers said: "In terms of addressing water infrastructure, €1 billion will be provided to Irish Water for non-domestic capital investment. "This will allow for works to be carried out across the country on capital projects related to remedial action lists, connections for new housing and addressing urban wastewater pressures."
