McCreevy backs plans for €200-a-year water charges

FINANCE Minister Charlie McCreevy yesterday backed proposals to introduce a €200-a-year water charge on households.

Standing by the Department of Finance’s demand for metered water charges, the Minister said he was in favour of the move that could raise up to €200 million for local authorities.

The principle of user charges had to be established, Mr McCreevy said, pointing to service areas such as motor tax and electricity and phone charges.

“I believe people should pay for the usage of water as well,” Mr McCreevy said.

The Government will have to find more than 1 billion to meet the cost of water and sewage services over the next three to four years. Ireland is the only country in the EU and the OECD that does not have water charges for domestic users after the levy was abolished in 1996.

The Department of Finance has urged the introduction of a €200-a-year water charge for all households.

The plan was backed by the Government’s Expenditure Review Committee, the so-called ‘Three Wise Men’.

The proposal would see the introduction of a flat rate for water charges nationally, but would offer the option of paying by meter. New houses granted planning permission from this year would have to be fitted with a water meter and old houses which install a meter would get a two-year exemption from charges.

Estimates compiled by independent consultants show the cost of water and sewerage services for homes has hit €200m and is set to double over the next five years.

The introduction of the water charge is being opposed by Environment Minister Martin Cullen.

Mr Cullen rejected the proposal out of hand but the water charges could be introduced by local authorities to raise extra revenue.