Environment agency scrutinises sewer tax

A tax paid by every household in Flanders for the maintenance and renovation of the sewer network was used by municipalities for its intended purpose, the Association of Flemish Towns and Municipalities has said. The association was responding to a report from the Flemish Environment Agency (VMM), which claimed that the money was actually used for the municipalities’ general budget requirements.

The sewer tax was introduced in 2005 and comprises a payment of €110 extra every year on a household’s water bill. The money is intended to be ring-fenced for investment in the 40,000 kilometre sewer network. Repairs to the network were noted as the top priority for the funds, with the rest as available then going to essential maintenance first, improvements next.

The sewers are managed by InterRio and other “inter-communal” societies, made up of representatives of the municipalities. Almost 200 municipalities have handed their sewer responsibilities over to the inter-communals, which in turn have to pay an annual fee.

According to the VMM report, since 2005 some €260 million of the money raised by the tax – about one euro in six – was used by the inter-communals to pay off the 192 Flemish municipalities instead of being used for sewers. In addition, another €112 million is still sitting in budgetary reserves. Judging by existing arrangements, VMM reports, another €78 million can be expected to be diverted in the same way in the coming years.

The VVSG denies that funds are being diverted. However, the organisation said, the tax alone is not enough to allow municipalities to carry out the work needed; the association has called on the government of Flanders to make up a deficit of €356 million. Only if that is achieved can the network managers establish concrete targets for the future of the network.