Cabinet moves to allow utilities take levy from welfare and wages

The Government is to introduce new legislation allowing for attachment orders to the welfare and wages of customers who are in debt with their utility bills.

The Cabinet has agreed proposals to allow ESB, Bord Gais and Irish Water seek a court order to take the levy from incomes of people who refuse to pay.

The move, which will apply to all civil debt, will be a last resort measure and is an attempt to ensure people do not go to jail for not paying their debts.

“There is a need for a balanced approach in relation to civil debt to ensure the protection of creditor rights by making available a range of legal mechanisms which compel payment by ‘won’t pay’ debtors who knowingly refuse to meet their obligations,” said the Minister for Justice Frances Fitzgerald.

“At the same time, the intention to abolish imprisonment is an important milestone.”

The legislation, which the Government wants enacted by the end of the year, will not extend to mortgage arrears or credit card debt.

It will steer clear of any monies owed to a financial institution because that would come under the personal insolvency legislation.

The proposed measures are aimed at distinguishing between those who can’t pay and those who won’t pay their bills.

The plans have been spearheaded by Minister Fitzgerald and the Minister for the Environment Alan Kelly.

The Cabinet also signed off on the proposal ensuring a person cannot access the proceeds of a house sale until the water charges are paid. There was also a slight softening on the proposals regarding landlords and tenants.

The legislation will ensure the liability always remains with the tenant and landlords will only be allowed deduct the charge from the deposits when the person leaves the rented accommodation.

This is only a short term measure until the Private Tenant Residential Board take over the role.

“Everyone has to be treated the same here,” said Mr Kelly. “We can’t have a situation where some people are paying their water charges while others simply refuse to pay.

“These measures are aimed at ensuring fairness in the application of water charges and will complement the Civil Debt procedures bill which will significantly reform the way all civil debt is treated in Ireland and move it way from what is a currently excessively bureaucratic procedure.”

The bills for water charges for the first three months of the year have been arriving over the past number of weeks.

Under current legislation, “late payment penalties” of €30 for single household and €60 for others will be applied to non-paying customers.

After the second year, the fines will double to €60 and €120 and in the third it will increase to €120 and €240. After the fourth year that will soar to €180 and €360. But the penalties do not take effect for another 15 months.

The compliance measures have been in draft form since January and have been with the Attorney General’s office for weeks.