Water charges: a not-so-dead deadline

Minister for Environment Alan Kelly on tricky ground

When is a deadline not a deadline? Households were meant to have signed up with Irish Water by Monday at midnight, but there is little consequence for those who did not comply. Their first bill might be a bit higher than otherwise,if they are a low user of water, and they will not qualify for the €100 grant until they sign up, but unlike other taxes and charges there is no real penalty for non-compliance.

By taking this “ softly softly” approach, the government is reacting to the huge opposition to the water charge, more evidence of which was seen in the marches over the week. However by declaring that the deadline is not a “ drop dead date”, but rather an “ administrative deadline”, environment minister Alan Kelly will surely realise he is on tricky ground.

The government’s approach put a question mark over the future of the charge. If close to half of those who are due to pay have not signed up - and face no immediate consequences - then the half who have given in their details will wonder why they should pay at all. And when they are told that those who did not pay will face no penalty until at least 15 months time, they may calculate that general election promises could yet scupper the whole enterprise.

The reason for the creation of Irish Water and the introduction of the charge were to give a boost to the urgent work of renewal needed for the water infrastructure. The mistakes made in setting up Irish Water have been well documented and discussed. We must hope that lessons have been learned.

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However the initial rationale remains valid - we need a way to pay for the upgrading of our water infrastructure and a central way to organise this. The charges are not optional and should be paid. By saying they will not do so, various TDs are effectively saying they will break the law.

There is also a wider question here. For too long, the main burden of taxation in Ireland has fallen on incomes. Part of the reasons for the local property tax and the water charges were to spread the burden to other areas. If more of the cost of water investment is not met via water charges, then it will have to come from the general taxation pot, and that means from income and indirect taxes.

It was already clear, after they controversies surrounding its establishment, that Irish Water faced a tough battle to win back credibility in undertaking the job it was given. A widescale refusal to pay water charges by the public could yet threaten the organisation’s existence. Indeed, it is far from certain the that EU will approve its establishment as a body separate from government. But none of this will solve the problem of our creaking infrastructure and the need to pay for and organise its repair.