Water charges in pipeline but Fianna Fáil stance poses threat

Homeowners and renters face a system of water charges but only after a free allowance is used up, the Irish Examiner understands.

The report of the Government-established independent commission on the future of water charges is to be published this week and represents the greatest threat to the “confidence and supply” deal between Fine Gael and Fianna Fáil.

There is considerable unease within Government ahead of the report’s publication, with some ministers fearing the issue could lead to the demise of the Coalition.

It is understood that the proposals from the commission must be “politically sailable” and deliver a mechanism which will allow Fianna Fáil move away from its position of seeking to fully abolish water charges.

Housing Minister Simon Coveney is expecting that the regime will propose a system of charges which will allow Ireland comply with strict European regulations and to avoid being subject to fines.

In this light, the Irish Examiner has learned that:

• A system of water charges for domestic customers is to be proposed, but only after very generous allowances are used up;
• Waivers will need to exist for the vulnerable, the elderly, and the disabled;
• The Government has no contingency funding to pay for any extension of the suspension of water charges and face a “black hole” should charges fail to return.

Led by Kevin Duffy, the water commission report will be delivered to the clerk of the Dáil while also being presented to Government.

The commission report will immediately be considered by a new 20-person cross-party Oireachtas committee, which will report to Government by the end of March next year.

Should Fine Gael secure Fianna Fáil agreement between themselves, the parties have a majority on the committee.

“The key to this is to allow Fianna Fáil change its stance on water charges,” said a senior Cabinet minister. “That is the goal of this exercise. Hopefully what comes will be politically sailable and allows us comply with Europe and bring certainty to the issue.”

As it stands, Mr Coveney faces an uphill battle to try and reintroduce a water charges regime, with over 90 of the 158 TDs in the Dáil opposed to imposing water charges on homeowners.

The Dáil was adjourned for 20 minutes in a heated row about the appointment of the chair for the special committee on water charges last Thursday.

Independent senator Pádraig Ó Céidigh was later confirmed as chairman after a 92 to 39 vote and a suspension of the Dáil.

The committee was established to deal with the report, due next week, on the future of water services and charges.

AAA-PBP TD Mick Barry accused the Government of attempting a “stitch-up” by appointing Mr Ó Céidigh as chairman of the committee of 20 TDs and senators who will deal with the report of the expert commission established to make recommendations for a sustainable model for water services.

Meanwhile, new figures reveal that at the end of September, a total of 12,232 customers contacted Irish Water to avail of the free leak investigation under the scheme.