Taoiseach says water service must be paid for as ‘water not free’

Taoiseach Enda Kenny has said there will have to be a payment for water services because “water is not free”.

Speaking in the United States, Mr Kenny again refused to say whether he was in favour of refunding those who complied with the legislation.

He denied he was making fools of Irish people who paid the now-suspended water charges.

Mr Kenny said he would leave the decision on the future of water charges to a special Oireachtas committee after an expert commission said this week that most households should not pay them.

“I believe very strongly that the committee should be allowed to do its work and fulfil its remit and irrespective of what conclusion it comes to, that it would come back to the Dáil ... Obviously there has got to be a payment process because water is not free,” he said.

“I do believe that it is important that we let the committee do its work now in respect of the commission’s special report that it has received. A vote will take place on that in March.”

There is a growing consensus in Fine Gael that the charges must be refunded to those who paid.

However, Minister for Housing Simon Coveney has insisted the focus should be on pursuing those who have not paid.

Fianna Fáil’s housing spokesman Barry Cowen said Mr Coveney should not be commentating. He said Mr Coveney should allow the Oireachtas committee to examine the best way forward.

The committee will meet next week to discuss how it intends to carry out its work.

One of the key questions will be how to ensure those who paid are treated no less favourably than those who did not.

Members are asking for a cost-benefit analysis to be carried out on which would be the most financially viable: pursing those who have not paid or refunding those that have.

Labour TD Jan O’Sullivan said the latest exchequer figures show there is enough extra tax revenue to repay those who paid.

Procrastinating

She said the Taoiseach should show leadership now, rather than procrastinating for another few months.

“Every other party has made their position clear on this, while Fine Gael and Fianna Fáil procrastinate. A line needs to be drawn under this long-running saga. The Government should commit now in principle to refunds and end the confusion,” she said.

Meanwhile Mr Coveney has given Fine Gael TDs and Senators a briefing document on the report by the expert commission that examined the future of water charges.

It concluded that services should be funded by general taxation but insisted a new tax or an adjustment of existing taxes may be required to fill the funding gap.

Mr Coveney’s guidance document insists this is “fully consistent” with the Fine Gael position.

“If no charging regime returns after the suspension period the full-year cost will be €239 million,” he said. “However, as no conservation grant would be payable, the effective net cost is arguably closer to €130 million.”