The Government’s move to ensure that those who either fail – or refuse – to pay their water bills will not go to jail will be welcomed by some, and questioned by others. For those that cannot afford to pay the water charge, the Government’s reassurance is welcome and necessary, and it will greatly ease their concerns. However, for those who can afford to pay, but who refuse to do so, many may well ask what lesser sanction can ensure they do pay?
Will removing the threat of a jail term for those debtors – able but unwilling to pay – simply result in a greater revenue loss for Irish Water, by emboldening more customers to become non-compliant? One hopes not. For this could leave the utility’s compliant customers facing higher charges in consequence. These are issues the Government needs to address, in order to convince the public of the merits of its latest policy shift on water charges.
The Government, which has yet to publish its proposals, has indicated a clear distinction will be made between the two categories of water payment defaulters. It is suggested that those who may struggle to pay their water bill could agree a flexible payment plan with Irish Water. But for those able to pay but unwilling to do so, the Government is to legislate to enable, as a last resort, attachment orders to the welfare or wage payments of those defaulting on their water bills.
The Government initiative can be seen as a political and economic response to the challenge presented by the countrywide anti-water charge protests that have continued for many months. The Coalition, with the introduction of the €100 conservation grant for all households – which serves to reduce the water charge for most dwellings to €160 – has already sought to diminish the appeal of the anti-water charge campaign. The Government with its latest move – introduced as the first bills for water charges are delivered to homes – has taken a further conciliatory step. It has ruled out coercion – by removing the jail threat for non-payment – and by so doing hopes this will ensure greater public compliance on bill payment. Will the proposed change achieve the Government’s political and economic objective? That should become clearer when legislative proposals are published, and more widely debated.
The most adverse consequence of the financial crisis has been the high level of outstanding debt - public, household, and corporate – that remains as its legacy. The Government has sought to address this in various ways. The insolvency period for bankrupts has been cut from 12 to three years, and the Government is under pressure to lower it further – to one year. The Government – by proposing to change the law to ensure that those who fail, or refuse, to pay their water bill, need never face the prospect of a jail term – has taken a calculated gamble.