Minister defends plan for flat-rate utility charge

MINISTER FOR the Environment Phil Hogan defended his proposal to introduce a flat-rate “interim household utility charge’’ next year.

“I will bring proposals to the Government in the near future on the legislative and administrative requirements necessary to implement the charge,’’ he said.

It was his intention, he added, that the revenues from the charge would support the provision of locally based services and, in turn, reduce local government’s requirement for exchequer support.

Mr Hogan said the EU-IMF programme of financial support for Ireland contained a commitment to the introduction of a property tax next year and in 2013 under its fiscal consolidation measures.

The programme reflected the need, in the context of the State’s overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for them.

In the light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce.

Accordingly, he intended introducing the utility charge.

Mr Hogan said the programme for government also proposed the installation of water meters in individual households and the introduction of charges based on usage above a free allowance.

“My department is preparing a strategy to implement these proposals, including the funding of the metering programme,’’ Mr Hogan added.

“Further details will be made available, following Government consideration of the proposals.’’

Mr Hogan said the EU-IMF programme further committed Ireland to introducing water charges for households by 2013 at the latest.

However, the Government had taken no decision on the exact date for the introduction of water charges by meter.

Niall Collins (Fianna Fáil) claimed that the Minister had given scant details to the House.

“We are aware of the commitment in the four-year recovery plan to introduce water charges and a site valuation tax, but I would like the Minister to elaborate on the new flat-rate tax he has proposed because it has slipped in under the radar,’’ he added.

“I am sure his own party’s backbenchers and Coalition colleagues are disturbed about it.’’ Mr Collins said the many hundreds of thousands who voted for the Minister and his party would also be alarmed that, within their first 100 days in government, he would introduce a new utility charge.

He urged the Minister to outline the detail of the scheme.

Mr Hogan said there was no confusion on the Government’s part on the issue. He said the Government was introducing what Fianna Fáil had negotiated with the EU and IMF.

“It is disingenuous of [Mr Collins] to try to infer that there is a new charge,’’ Mr Hogan said.