AN announcement that the Government intends to abolish the controversial water charges as part of an overhaul of local government funding is expected to be made today by the Minister for the Environment, Mr Howlin.
The cost of removing the water charges is likely to be made up by allowing local authorities to retain the revenue raised by motor tax, rather than passing it to the Exchequer as is currently the case.
Water charges raise £55 million annually for local authorities but have long been vehemently opposed in Government by Democratic Left as inequitable. Their removal is understood to be one plank in an overhaul of local government funding which Mr Howlin hopes will be cleared at today's Cabinet meeting.
He is also seeking Cabinet approval for changes in the organisational structures of local government and improvements in management.
Following the Cabinet meeting, the second in a week and the last before the Christmas recess, Mr Howlin's plans are due to be unveiled at an afternoon press conference at Government Buildings.
According to sources, the Minister will be able to put forward a "very plausible method" of funding local government while getting rid of the contentious water charges. Motor tax raises about £250 million a year.
Changes in Residential Property Tax, also linked to the reform of local government financing, are to be left to the Minister for Finance, Mr Quinn, in next year's Budget, according to sources.
Mr Howlin had committed himself to finalising the proposals before Christmas. He has already commissioned a report by KPMG consultants on the matter.
Fianna Fail's spokesman on local government affairs, Mr Noel Dempsey, said last night the Government would have to ensure that any changes implemented in the package would not affect funding.
Meanwhile, the chairman of the
Federation of Dublin Anti-Water Charges Campaign, Cllr Joe Higgins, said yesterday it was "unthinkable" that the Government would attempt to retain the "hated" water tax.
Warning against the abolition of water charges only, he also called for the removal of refuse and sewerage charges which are a "double taxation".
These issues will also be addressed today but it was not clear last night how the Minister intended to deal with them.
According to Cllr Higgins, who almost took a Dail seat in Dublin West on an anti-water charges platform, there should also be an immediate end to court cases against householders who have refused to pay and an amnesty for all unpaid charges.
"Tax credits should be implemented for those who have been browbeaten into paying these punitive domestic charges over the past years," said Cllr Higgins, adding that these would be important issues in the general election if left outstanding.