The administrative arrangement between Fianna Fáil and Fine Gael was under renewed pressure on Tuesday night as the two parties clashed over the future of water charges.
Fianna Fáil has insisted it will not support any form of charging regime including for excessive use of water by individual households, provoking an angry response from Fine Gael.
Minister for Housing Simon Coveney said Fianna Fáil's position is legally unsound and could leave Ireland open to significant fines from Europe.
Mr Coveney insisted he would not introduce any legislation that defies the advice of the Attorney General, the European Commission and legal opinion from his own department.
“I am not going to take a position that is contrary to the independent legal advice from the Attorney General’s office. That would be blatantly irresponsible of me and I won’t do it,” he said.
The Oireachtas committee on water charges met on Tuesday and a large number of the 20 members stressed they will not support charges for excessive use.
The committee did commit to giving money back to the householders who paid their charges, with members suggesting the €100 water conservation grant should be deducted from any refund.
The final cost of refunds is not known but it has been estimated at €240 million. However, if the conservation grant is deducted that could be as little as €80 million.
Householders living in a household of more than one person who paid all five bills could be entitled to €325, minus the €100 charge if they applied for it. Those who live alone would have paid €200 over five bills.
Meanwhile, a working paper circulated to committee members by chairman Pádraig Ó Céidigh provides for an excessive water usage charge.
However, this has been resisted by a large number of committee members including Fianna Fáil, Sinn Féin and the Anti-Austerity Alliance People before Profit.
The working paper also commits to refunding households which have paid their bills. It proposes to retain domestic meters already installed and introduce a requirement for all new builds to have meters installed.
A tax credit or welfare payment will be offered to those who voluntarily take up a domestic meter.
Directive breach
Fine Gael believes the absolute abolition of charges is a breach of the European Water Framework Directive, which insists Ireland must abide by the “polluter pays” principle and facilitate a system which allows for the “recovery of costs”.
However, the agreement reached between the two parties before the formation of the Government commits it to facilitating any legislation to implement the recommendations of the committee, including abolition of the charges.
Mr Coveney argued the arrangement did not foresee a position where a Minister would be asked to defy the advice of the Attorney General.
Fianna Fáil has insisted the Government must respect the Oireachtas committee’s outcomes, even if it does not agree with them.
The party's housing spokesman Barry Cowen said Fianna Fáil would support Irish Water penalising householders who waste water with potential fines of up to €5,000 but said it was not right or proper to impose charges for excessive usage.
The Fianna Fáil TD and Mr Coveney held a number of discussions on Tuesday, with further negotiations to take place on Wednesday.
It is understood Mr Ó Céidigh warned members at a private meeting to ensure they do not agree to anything that could be illegal.
Members will meet again today to consider their final report.
