‘Nothing new in car tax going to Irish Water’

Tánaiste Joan Burton has hit back at criticism from the chairman of the Dáil’s financial watchdog by accusing him of “playing politics” over Irish Water.

The head of the Public Accounts Committee, John McGuinness, drew the ire of the Labour leader by expressing alarm that a further €3.5bn of taxpayers’ money would be pumped into the utility by 2022.

The Fianna Fáil TD branded the funding of Irish Water a “financial mystery tour” and said motorists would be surprised to learn some €300m a year is being given to the utility from road tax via the local government fund.

Ms Burton insisted that there was nothing new in motor tax being used in this way.

“Of course the money which was previously going into the local authorities exclusively in relation to water is going to transfer to the national water services company — that makes sense,” the Tánaiste told Radio Kerry.

“And John McGuinness is a businessman himself, and I think there was a little bit of politics being played there.”

Mr McGuinness also criticised Irish Water for not having a business plan beyond 2016.

The PAC chairman has called for greater transparency regarding Irish Water and said that the utility should be brought under the remit of the Comptroller and Auditor General so that the Dáil could keep a closer watch on its finances.

Mr McGuinness had previously warned that up to half of the €7bn that the utility is set to receive between 2016-2022 for improvements to its supply system could end up coming from the public purse rather than being borrowed independently on the international money markets.

The money given to Irish Water from the local government fund, which is comprised of more than €1bn from motor tax and another €500m from property levies amounts to €439m after authorities transferred their responsibilities and assets regarding the supply system to the utility.