Ireland faces court action over water charge failures

IRELAND could be hauled before the European Court of Justice for failing to adequately charge farms and businesses for water usage.

The Government could find itself in the dock within two months over its failure to correctly implement the terms of the European Water Directive.

The directive, which came into force in 2000 with Ireland’s agreement, provides a framework for integrated water management in river basin districts across the EU.

Member states had until 2003 to implement its various provisions.

Now, the commission says it is “concerned” that Ireland incorrectly implemented the concept of water services as described in EU water legislation — leading to inappropriate water pricing. It says six member states have all taken “differing interpretations” of the rules which pertained to the directive.

The other countries under scrutiny are Germany, Belgium, Denmark, Finland and Sweden.

One of the key parts of the legislation is an obligation by EU states to adopt a cost recovery policy for water services that includes the environmental and resource costs of water use, taking into account the “polluter pays” principle.

Ireland has interpreted that to mean that cost recovery should apply only to the supply of drinking water and the disposal and treatment of waste water.

However, the commission says it sees water services as a wider notion that includes “water abstraction for cooling industrial installations and agricultural irrigation, the impoundment or storage of surface waters for navigation purposes, flood protection or hydro power production, and well drilling for agricultural, industrial or private consumption”.

“The exclusion of these activities from water services hinders the full and correct application of the Water Framework Directive, contributing to inefficient or wasteful use of water,” the Commission said.

“The Directive is also intended to see equity between different water users. This case is not about domestic water charges. It is to do with the wider cost policy over all users, not just drinking water and sewage systems, based on the ‘polluter pays’ principle.”

Now, on the recommendation of Environment Commissioner Janez Potocnik, the commission is sending Ireland a “reasoned opinion” to ask it to adjust its national legislation accordingly.

“If Ireland fails to reply within two months, the commission may refer the case to the European Court of Justice,” a commission spokesman said.

A spokesman for the Department of the Environment said it would be entering discussions with the commission. He refused to comment on what the implications would be for groups such as farmers if the commission’s interpretation has to be applied to the directive.