Uncertainty over €2 million charge once Uisce Éireann take over water services in Louth

There is uncertainty in relation to what will happen in relation to a central management charge, which in Louth's case is in excess of €2 million per year, once the handover of water services to Uisce Éireann is complete, councillors were informed at the Louth County Council December meeting.

Cllr Antóin Watters raised the matter at the December meeting, seeking an update on the handover.

Chief Executive Joan Martin explained to the members that local authorities' chief executives were asked to sign the framework agreement with Uisce Éireann.

Ms Martin said that 30 of the local authorities signed the agreement, but she did not, because she said, there was no certainty around the recoupment, of the central management charge, which in Louth's case is in excess of €2 million per year.

The Chief Executive said that up to now it was being recouped to the local authority by Uisce Éireann.

There was no certainty the Chief Executive said about what was going to happen, there was ongoing discussions with the Department about how it was going to be funded in the years ahead.

Ms Martin continued, saying that as long as there was uncertainty, she was unwilling to sign over to the new agreement.

Having spent a considerable amout of in her role as chief executive dealing with finance, including time negoiating with government ministers in relation to legacy land loans, she said she was very reluctant in her last year in the role to take on an inheritance of potentially another blackhole in the council's finances.

Then, in September at the chief executives' meeting, a draft memorandum of understanding was brought forward between the CEs' group and the Department and it indicated that while discussions would have to continue in the long term, there was a three year window of money promised to pay for the costs that would be left behind when Uisce Éireann took over completely.

On that basis, Ms Martin said she signed the agreement. Following this however, the chief executives were informed that there was only certaintly in relation to the payment for one year and no certainty for 2025 or 2026.

Ms Martin told the meeting that she signed the agreement on the basis of something she had been told and now was being told something different.

She added that she no longer wished to proceed with the agreement, although she was not sure if she had that choice now she has signed it.

Following discussions with the government department, Ms Martin added that there is only certainty for one year, the subsequent years still have to be negotiated and discussed.

She said she didn't know what confidence she had about the money coming in for 2025 and 2026 and that there would also need to be direct discussions with Uisce Éireann in relation to how much it is going to pay Louth County Council for the support services that it will be providing to it, as well as if the local authority will continue to provice Uisce Éireann with services including accommodation, heat and light.

The Chief Executive said that the central management charge that the Council is left with, which is a very large sum of money she added, will have to be spread across remaining services, with services including roads, housing etc, all having to absorb a bigger amount of it.

Ms Martin said that said she will push for an early resolution but may have no other choice other than be left with the agreement, and if so, water services are likely to transfer over to Uisce Éireann in a matter of weeks.

Following a request from Cllr Antóin Watters that issues relating to water be kept on the Council agenda until the situation is resolved,

Ms Martin said that it would be kept on the agenda but once the handover was complete the opportunity to raise issues relating to water would no longer be available.