Shortfall of €35m as 20% of households set to snub water grants

The Government has under budgeted for its water conservation grants and said this is because it expects that over a fifth of households next year will not apply for the allowance to help pay bills.

Public Expenditure Minister Brendan Howlin has admitted that the money set aside for the annual €100 grant for households is €35m below that needed to cover all homes in the State.

The Labour minister says this is because not all households are expected to apply for the grant next year.

Only €130m has been set aside for the water grants, despite the fact that €165m is needed if all homes are to get the allowance as Coalition leaders have promised.

The Government’s revised water charge regime will face its greatest test yet as thousands of protestors from around the country are expected to merge on the capital for a mass rally on Wednesday.

Mr Howlin told Fianna Fáil finance spokesman Michael McGrath in a recent parliamentary written answer that the funds needed to pay for water grants had been left short by €35m for next year.

“There are approximately 1.65m primary residences in the State which would require a potential allocation of €165m.

“The grant will be paid for the first time in 2015. The estimated cost of €130m was based on the assumption that not all households would apply for the grant in the first year.”

The Coalition have said that all homes will get the grant, including those on public water schemes or with wells, but that they must apply for it or sign up with Irish Water.

Mr Howlin said that if more than four in five of dwellings sought the grant, that the extra cash would be made available.

“In the event that there is a higher number of applications for the grant than covered by the estimated amount of €130m, any additional cost will be provided by the exchequer as part of the normal estimates process.”

But Mr McGrath said that the Coalition’s estimate of the numbers expected to claim the grant showed it lacked belief in its own plans.

“The fact the Government are budgeting that only 78% of people will avail of the grant in 2015 shows how little confidence they have in their own plans for Irish Water,” he said.

Labour leader and Tánaiste Joan Burton yesterday said that she believed that the revised water charges regime was agreeable for households.

There was a “significant number” daily signing on and registering with Irish Water, Ms Burton told RTÉ’s The Week in Politics.

She said that with the capped charges and grants in place that the cost would be €1 a week for a one-adult household and €3 a week for a family.

These were “reasonable” and “certain” costs, she added.

Wednesday’s protest is being backed by trade unions, campaign groups, Opposition parties, and a visiting anti-water charge delegation from Detroit.

The three-hour rally, starting at 1pm, will take place on Merrion Square. While gardaí will be in attendance in numbers, protest organisers have stressed the event must be peaceful.

Right2Water say they are expecting tens of thousands to take to the streets.