Tánaiste Joan Burton has told the Dáil she does not "anticipate" any bonus payments in Irish Water until the company is "operational".

During heated exchanges over the ongoing water charges controversy, Fianna Fail environment spokesman Barry Cowen pressed the Labour Party leader about her views on the bonus payment system operating within the newly established authority.

Ms Burton said “I don’t anticipate any bonus payment in the context of a set-up period”.

She told the House that the bonus system was “designed to actually save money”. She said it was a “structured payment in relation to salaries that actually foregoes increment”.

Ms Burton said the timeline for Irish Water was “too ambitious”, echoing comments by Minister for Environment Alan Kelly during a debate on the authority earlier this week.

She told Mr Cowen that Fianna Fáil leader Micheál Martin had asked the cost of going back to the 34 local authorities. “To take the company out and put it back to the taxpayer would cost €2.5 billion.”

Mr Cowen asked her again about the bonuses. “Do you agree with them when they’re set up and in place and robbing Peter?”

Ms Burton said “bonuses will be dealt with by the board of Eirvia”.

“I do not anticipate any bonus payments until such time or any enhancement payments or whatever other kind of management speak title is used on the payments - I do not anticipate anything like that at all being paid until such time as the company is operational.”

Asked this afternoon in Brussels whether he was minded to extend the period in which fixed water charges will apply, Taoiseach Enda Kenny said thre Government considered the matter at its meeting on Tuesday.

“What we did say was that there are legitimate concerns and problems that people have both with Irish Water and the general regime and we’re looking at those and working between Ervia and Irish Water to see that people have confidence in the system,” Mr Kenny said at the start of the EU summit.

“This is a massive utility for the next 50 years to create investment for infrastructure for high quality drinking water, for water for business and for industry and for persons alike. We want to see that it’s fair, that it’s affordable and that people can have absolute confidence in the system and we’re happy we can achieve that.”

Asked when the Government would provide clarity on the matter, the Taoiseach said: “I would say in the next few weeks.”

In a separate development the Dáil unanimously agreed to adjourn next week for Halloween and return on Tuesday November 4th at 2pm.