Water charges for businesses in Mayo are set to increase by at least 11 per cent next year, Peter Duggan, head of finance for Mayo County Council, told councillors at the monthly meeting of the local authority. Mr Duggan was seeking approval for the raising of a €6.2 million loan to fund the council’s obligations under the polluter pays principle for three water services schemes in the county. The three schemes in question are Castlebar and environs scheme, which will cost the council €5.5 million, the Achill Sound sewerage scheme, costing €2.2 million, and the Kiltimagh sewerage scheme, which will cost the council €1 million.
A total of €8.7 million is owed by the council under the polluter pays principle; the council has €2.5 million cash on hand from development levies so it will have to borrow €6.2 million to cover the rest of the money. Mr Duggan told the meeting that in raising the loan the council would have to make repayments annually of €620,000, and this would necessitate an increase in water charges of 11 to 12 per cent in 2011 to cover the loan.
While the domestic metering has not commenced yet in Mayo and is not likely until 2011 at the earliest, business customers are going to see the rates they currently pay, which are €125 per annum standing charge for metering, 91c per cubic metre of water, and €1.25 per cubic metre for disposal of waste water, increase by at least 11 per cent next year.
Paddy Mahon, director of services for Mayo County Council water services, told the Mayo Advertiser this week that the polluter pays principle has been in existence for about 10 years. “When it initially started the cost was in the single digit percentage which was affordable, but now there is no major scheme that doesn’t require in the region of about 30 per cent of the cost,” he said.
“There was a time when development levies would cover the majority of these costs, but over the past few years when the development has slowed down so has the income from levies, and this is the only way we can see at the moment to meet our obligations,” he added. “Hopefully it will only be a short term issue.”
While the three schemes that this loan relates to are already in the construction phase, Mayo County Council also has a number of other schemes which are at contract stage which will cost around €40 million. These are the Belmullet, Foxford, and Charlestown sewerage schemes which will cost €14.3 million, the Lough Mask regional water supply scheme which is costing €10 million, water conservation works costing €6.26 million, the Cong water supply scheme costing €1 million, and the Killala sewerage scheme which will cost €5.1 million.
Acting county manager Joe Beirne told the meeting of Mayo County Council for these schemes waiting to come on line there is a much bigger bill coming. Despite concerns issued by a number of councillors, they approved the loan and the issue of charges will be discussed at the June meeting of the authority.
