Coalition is yet to plug leaking communications tap

Has the Government not learned anything from the household charge fiasco?

A botched public information campaign and confusion over how to pay were two of the biggest problems with the €100 household charge, the precursor to a property tax.

One might have thought that, given those circumstances, the Coalition would have learned a lesson or two and been more careful with the issue of water charges.

Instead, it has spent two days blundering on the issue and creating unnecessary confusion.

Water charges are set to be introduced in 2014, in keeping with the EU/IMF bailout agreement. The idea is straightforward: Householders will get a basic allowance of water which they can use for free. They will then be charged for any additional water they use above that allowance.

But in order to measure the amount of water used, meters will have to be installed. The Department of Environment says the rollout of meters will begin by the end of this year.

On Sunday morning, a newspaper reported that householders would not alone be faced with consumption charges, but the costs of installing the meters too.

The department subsequently confirmed as much to the Irish Examiner, with a spokeswoman for Environment Minister Phil Hogan stating: “Similar to how other regulated utilities are funded globally, the cost of the meters and the delivery of service will be passed on to the consumers.”

Then the farce began. In Galway, where he was closing his party’s centenary conference, Tánaiste and Labour leader Eamon Gilmore insisted that nothing had been decided on the costs issue.

“It’s a matter for the department to bring its proposals before the Government and then the Government will decide on it.

“And to date, no proposals have been brought in respect of that matter before the Government.”

But a short time later, speaking in Co Mayo, Taoiseach Enda Kenny said something different. He appeared to contradict both Mr Gilmore and the department when saying that householders would have to pay for the meters themselves but not the costs of installing them.

“There will not be an installation charge for the householder because that cost will be covered as a loan from the National Pension Reserve Fund to the department. There will be a cost for the meter itself.”

So three different versions of events from three Government sources. It really couldn’t have been more farcical than that.

In a bid to clear up the confusion yesterday, Phil Hogan’s department did its best to outline the situation that would pertain while seeking not to contradict the Taoiseach.

It said the independent regulator being set up to oversee the new system would set the charges for water consumption.

It said there would be “absolutely no upfront charge” to householders for meters or their installation, as these costs would be met by the Government from money sourced from the National Pension Reserve Fund.

Therefore, citizens would not see a bill until 2014.

But here’s the bit where the department could not avoid contradicting the Taoiseach.

Asked if either the meter costs or installation costs would ultimately be recouped from householders over time, a spokeswoman said: “Irish Water [the state company being established to take over water services from the local authorities] will have to look at their funding model.”

In other words, the meter costs and installation costs may be recouped from householders over time by way of a “standing charge” on each bill.

So rather than paying, say, hundreds of euro upfront next year to get a meter and have it installed, householders will probably pay a few euro every month, on top of the amounts they pay for the water itself, once billing begins in 2014.

None of that sounds pleasant for householders already stretched, but it at least sounds easier than upfront costs running into hundreds.

Instead of making this clear, however, the Government once again made a mess of communicating this.

Their confused messages came as a survey by the Irish League of Credit Unions showed 47% of respondents had less than €100 left in disposable income each month after paying essential bills.

If the Government was trying to make people more fearful, or more angry, it’s very likely that it succeeded.