Joint property and water charge idea is ‘madness’, says Coveney

Minister for Housing Simon Coveney says the taxpayer could end up paying more for water if the expert commission's recommendations are implemented.

Speaking on The Irish Times "Inside Politics" podcast, Mr Coveney said it was possible the report's findings could result in additional costs for the population than the previous charging regime.

The Minister also strongly criticised a proposal, being considered by Fianna Fáil, to amalgamate the water charges with property tax in 2019.

He said it was “madness” to introduce a charge that had no consequences for excessive water use.

Mr Coveney said it was not credible for a party which aspired to be in Government to advocate such a position.

Fianna Fáil is to consider merging the two charges in three years when the property charge is revalued.

This follows the publication of the report by an expert commission examining the future of water services.

It recommends the use of general taxation for the funding of water services and charging for those who excessively use water.

The report says a new tax, a broad-based fiscal adjustment or an adjustment of existing taxes will have to be considered.

Mr Coveney said this would be a matter for the Minister for Finance Michael Noonan but admitted the Cabinet would have to have a discussion on what route it would take.

The Minister said the cost of abolishing water charges would amount to €129 million.

Anti-Austerity Alliance TD Paul Murphy said his party would continue to fight for the outright of abolition of the levy.

He said the report was an exercise in saving the blushes of Fianna Fáil and Fine Gael.

Mr Murphy said: “It makes no financial sense to keep a charging regime in place if it is only for a tiny minority of people unless they intend to charge a broader layer of people in future through reducing the allowance and increasing charges as happened with the bin charges.

“The water metering programme should now be halted immediately. It has been a waste of half a billion which could have been invested in fixing pipes or locating leaks on a district level.”

Former minister for the environment Alan Kelly said the water charges issue would lead to a general election.

Mr Kelly said Fianna Fáil would have to row back, “or Fine Gael are going to have to roll over, or else we’ll be on the road again”.

The Labour TD said that his initial reaction to the report is that "we have the worst of all worlds now".

“What’s here is a fudge, there are some good aspects to it, especially in relation to a referendum on resources and water, the issue in relation to parity is something that I’ve advocated for a long time, but that’s going to have huge costs.”

The report recommends a daily allowance is given to every household but says the amount should be determined by the Commission for Energy Regulation.

Minister for Communications Denis Naughten has suggested 100 litres should be offered to each house.

Mr Naughten said the United Nations had established that humans need anywhere between 50 and 100 litres of water per day for sanitation and drinking. At 100 litres per day the allowance would represent a modest increase of about 18 litres a day on the current allowance which is pitched at 30,000 litres per year.

“My view all along was that people should be given that allocation and if they go over that they should pay for it so it will drive responsible use of water.”

Meanwhile, in the Dáil, Minister for Education Richard Bruton refused to be drawn on whether the Government would refund those who paid if water charges are eventually abolished.

He said the Oireachtas committee considering the report by the expert commission would discuss how that was to be dealt with.

The Minister, who was taking Opposition Leaders’ Questions, was replying to Labour leader Brendan Howlin, who asked about the position of “law-abiding citizens’’ who had paid the charges. Mr Howlin said it was “fanciful’’ to believe anybody who did not pay would be pursued for the money.