The head of one of the country's largest trade unions has agreed with the Taoiseach's warning over water charges.
Last night Enda Kenny said the abolition of the charges would lead to a 4% hike in income tax.
Today, SIPTU's Jack O'Connor has echoed that sentiment, saying that the Government will need to make up a shortfall in funding if householders refuse to pay Irish water.
Mr O'Connor also says that the coalition will be forced to hike taxes and seek private investment to plug the gap.
“What’s going to happen now is that Irish Water won’t be able to collect its revenues to a sufficient degree,” he said.
“It will drift into insolvency, and then the Government of the day …will be faced then with the costs associated with putting the investment back on the balance sheet – and that would entail tax increases and public spending cuts.
“And - Hey Presto – in that situation, private money will emerge as the solution.”