Confusion over home levy start date

A MAJOR Government policy was plunged into confusion for the third time in a week as the Taoiseach refused to confirm that controversial new household charges would be brought in next January.

Despite Environment Minister Phil Hogan stating the levy would be imposed from the start of 2011, Enda Kenny left the start date in limbo.

The Taoiseach’s failure to back up Mr Hogan’s timetable for the flat rate charge on homes follows the Government scrambling to slap down predictions from Transport Minister Leo Varadkar that the country could need a second bailout, and outspoken criticism from Labour TDs over a Fine Gael attempt to change some wage agreements.

Mr Hogan said the household charge would come in on January 1 next and then be followed by separate water levies, agreed in the EU/IMF bailout deal.

Mr Kenny, who could not say how much households would be forced to pay, was also vague when asked if the new charge would be imposed next year: “The Government have not made a decision in regard to this yet. And when the Government do make a decision on that, obviously, everybody will know about it.

“These proposals from the minister will come before the Government shortly and will be announced as a result of a Cabinet decision.”

Tánaiste and Labour leader Eamon Gilmore appeared to distance his party from the idea of a household charge. “The Government has not considered a household charge. What is in the Programme for Government is a proposal for metering for water. The proposals on how that might be implemented have not yet been considered by the Government,” he said.

Mr Hogan insisted a “generous” free water allowance would allow for washing and preparation of food and drinks.

However, he said households would have to pay for extra water use caused by a leaky tap or burst pipe.

Mr Hogan also claimed water conservation rather than revenue generation was at the heart of the decision to install universal domestic water meters from next year, but admitted the state could still benefit financially even if every household stayed within their water allowance.

Sinn Féin leader Gerry Adams said the pair of proposed new charges amounted to stealth taxes that families would not be able to bear. He told the Dáil the money earmarked for installing meters would be better spent repairing the system.

“More than 40% of water is lost because of the bad system we have. I understand that the cost of installing water meters will be €500 million.

“Would you not agree that the best way to conserve water would be to use this €500m to improve our water system, create jobs in the process, reduce this massive waste of water without imposing these additional taxes on hard pressed families?” he said.