Water charges modest, claims Noonan

Finance Minister Michael Noonan has further fuelled the political storm over water charges after describing them as "modest" amid mounting anger with Irish Water and pay bonuses for its staff.

Following growing confusion over the tariff, the energy regulator will today set out exactly what households will have to pay. The Cabinet will also discuss Irish Water’s future as criticism turns to its board and CEO.

The Irish Examiner has also confirmed that a decision will be made this week on whether the October 31 deadline for households to register details for charges will be put back by possibly a month or more.

Meanwhile, Mr Noonan caused uproar after suggesting that water charges were inexpensive.

Speaking in Limerick yesterday, he said: “The Government is committed to addressing the issues in Irish Water and making sure it’s a very efficient, commercial semi-state organisation.

“We are also committed to having a modest charge on water, because it’s such a scarce resource. It is recognised internationally, the best way to manage a scarce resource is to have charges on it so that people save on usage.”

However, the Society of St Vincent de Paul attacked Mr Noonan’s claim. Head of social justice John-Mark McCafferty said: “It’s an additional charge for some families already struggling with other charges. What’s modest for one family is a very challenging charge to others on low pay or welfare. It’s not modest for households we are helping.”

The confusion over what families must pay for charges will be addressed by commissioners with the energy regulator’s office today when they appear before the Oireachtas environment committee. TDs will also quiz them about free allowances and the quality of water services.

Fianna Fáil want charges to be suspended and will this week lead a Dáil debate on Irish Water, including on the bonus system.

Ministers have expressed mixed views on the issue of pay rewards after reports that some may get a 19% wage boost while others will still get a 9% bonus despite under-performing. Labour’s Alex White said the idea of bonuses was “jarring” for the public, while Jan O’Sullivan said she had concerns about Irish Water.

However, Fine Gael’s Damien English said bonuses were acceptable if they “drive productivity”. His senior minister, Simon Coveney, said there were “teething problems” with Irish Water.

Government sources confirmed last night that Irish Water will be top of the agenda at today’s cabinet meeting. Ministers are set to discuss the structure of its board, as well as concerns about how Irish Water is communicating with the public. Ahead of the talks, Transport Minister Paschal Donohoe last night refused to express confidence in Irish Water CEO John Tierney, despite being asked three times on RTÉ’s Six One News.

Meanwhile, the deadline for households to register looks likely to be pushed back. The energy regulator has confirmed that Irish Water wants an extension on the end of October validation date for customers.