Water fee waiver for low-income households

By Mary Regan, Political Reporter

Wednesday, October 14, 2009

LOW-income households will be exempt from paying a proposed water charge according to Taoiseach Brian Cowen, who admitted that the policy – agreed with the Green Party last week – still requires "further detailed examination".

The introduction of water rates was agreed in the Programme for Government, but Mr Cowen told the Dáil yesterday that "no definitive or detailed framework for the implementation of the commitment can be spelled out at this point".

It’s understood there is disagreement between the Green Party members in government, who want a pay-per-use water charge, and the Department of Finance, which favours a flat fee.

During leaders’ questions, Labour Party leader Eamon Gilmore asked the Taoiseach for assurances that a flat rate would not be introduced in December’s budget, claiming it would cost €2 billion to install meters in the country’s 1.9 million households.

Mr Cowen responded that "the final approach will be the subject of government decision on the basis of detailed proposals which have to be worked up".

He said: "Local authorities will need to gather information on the identity and location of customers and to ensure their billing systems are accurate.

"It will also be necessary to establish a waiver scheme for low-income householders."

Fine Gael believes a metered water charge system would cost the state €500m.

The party estimates that up to €2.5bn in extra taxes are needed to pay for the Green Party’s shopping list agreed in the new Programme for Government – a figure Mr Cowen said should be "taken with a pinch of salt".

Fine Gael leader Enda Kenny asked: "Who is going to pay for the extra 500 teachers that you mention over three years? Are they to be appointed to the detriment of the appointment of nurses, guards and other frontline public services that people so desperately need?"

He said: "From our perspective, we have carried out a preliminary examination of the tax implications of the new deal and based on those estimates the ordinary family is going to have to foot an increased tax hike of €2.5bn."

Mr Kenny also accused the Green Party of breaking a promise that the Programme for Government would be costed.

Before negotiations began on the revised programme, Green Party leader John Gormley said: "You can’t have a document which isn’t costed, it has to be costed and will be costed."

Mr Kenny said yesterday: "Regrettably this hasn’t happened."

A spokesperson for the Greens said the programme will be costed and "the details will be worked through as part of the budgetary process".

This story appeared in the printed version of the Irish Examiner Wednesday, October 14, 2009