Minister for Jobs and Enterprise Richard Bruton has said abolishing the water charges will halt job creation and lead to income tax hikes.
“If we do not do this you’re going to have to raise an alternative tax and it is very clear that tax would have worse impact on job creation that this one. By introducing this approach, we’ll be able to leverage double the amount of investment than if you didn’t have a charging system for water,” he said.
“It’s an anti-austerity measure if you like because it leverages investment in our infastructure in the here and now which could not be funded by Government. Michael Noonan has rightly said that if you did not have an Irish Water, you would have to raise close to €900 million.”
Mr Bruton was speaking at the announcement of the merger of Competition Ireland and the National Consumer Authority.
“This provides jobs immediately in terms of investing in a under invested resource but in the long term if we push up our income tax which is being touted by others, we kill the job creation machine that we’re trying to build.”
“This is a very soundly based, it is a wise and prudent long term approach to a resource that we have to manage carefully.”
“I am categorically opposed to ever considering privatisation of Irish Water. Any economist would tell you that a resource of that nature should be kept in public ownership.”
Mr Bruton said both coalition parties are committed to public ownership of Irish Water and that it is “enshrined in the law. “
He also expressed full confidence in Irish Water chief John Tierney. “It’s not a sign of weakness to admit mistakes. The issue, the test of Irish Water with the capacity to deal with the issues that are there and that’s the challenging. This is a difficult project,” he said.
Mr Bruton said he did not need to apologise for how the Government has handled Irish Water.
“We’re actually creating a body that can invest in long term infastructure that we will need. If we want job creation in the regions we will need a sound infastructure in the water network nationwide. This is a way of funding that at a time when Government can’t itself do that,” he said.
Mr Bruton said the establishment of Irish Water is an “innovative way of meeting a really difficult challenge.”
Mr Bruton said he acknowledged mistakes had been made by Irish Water and the approach “had not been as smooth as he would have liked.”
“There are a lot of people out there who want to deliberately sabotage what this organisation is seeking to do and I stand strongly in favour of what this organisation is trying to do.”
