Fury at ‘borrowing own money’ for meters

Outrage over why householders will have to pay back a Government “slush fund” for the cost of having water meters imposed on them despite bailed-out bankers being “let off” by the same institution erupted in the Dáil.

Independent TD Shane Ross expressed dismay people would be charged about €800 in standing payments for the meters to reimburse a €450m loan taken out from the National Pensions Reserve Fund to cover the rollout costs.

Households will be forced to pay about €40 a year over the next two decades to the fund at interest rates that could be as high as 6%.

“Why are the people borrowing money from the National Pensions Reserve Fund? We are borrowing our own money when we do that,” Mr Ross asked during leaders’ questions.

“This contrasts completely with what happened to the NPRF when the banks went to it. When the banks went to the NPRF an equity investment was made and they will never have to repay most of the money.

“Why did the Government not direct the NPRF to put this money into the installation costs so people do not have to borrow it?

“Why is this fund, which was pillaged by the banks for money which they will not pay back, being loaned to the people, who are going to have to pay back? We could treat the people at least the same as we treat the banks and allow them to take the money, thereby abolishing that €40 charge.”

Mr Kenny said the arrangement was intended to protect pensions. “The reason for the loan being made in the way it will be made is to provide a commercial return for pensions for people for the future. The Government does not have any pot of free money to allocate as it so wishes. It is all the people’s money, one way or the other.

“We want to deal with the question of serious savings having regard to leaks, investment in proper infrastructure for the carrying and the transmission of water, and the large-scale evidence of water leaks between public boundaries and private houses, of which there are many cases,” he said.

Mr Ross dismissed the explanation as misleading.

“I do not believe that the NPRF will ever pay a pension. It will be used for infrastructure. It has been used for the banks. It is now a kind of a slush fund for the Government at a time of emergency. It has two forms of funds. It has one for direct — what it called directed — investment and one for discretionary investment. This one is for some reason being used for discretionary investment and the other one, into which the great multiple of the NPRF money has gone, is one that is gone down a black hole into the banks.”

The finance department said preference shares were taken out in bailed-out banks such as Bank of Ireland, and the water metering loan needed to be done on a commercial basis.