‘EU exposed lie at the heart of Irish Water’

Taoiseach Enda Kenny has been called on to urgently outline what the Coalition plans to do after Irish Water failed a crucial European test to keep the utility’s debt away from public-spending calculations.

Members of the Coalition scrambled to defend Irish Water’s position after the Eurostat negative ruling added an extra €500m to the country’s deficit.

The EU statistic agency’s criticism of the water-charging system also spurred opposition figures into calling for Irish Water to be abolished and for the billing scheme to be reviewed.

The Eurostat ruling means the Government must include Irish Water’s debts on its public-spending calculations because less than half its funding comes from non-state sources, including the public.

The ruling could also have implications for how the utility borrows money from the markets in the future.

Furthermore, it may be a year or longer before there is any review of the Eurostat ruling and whether the next government could take Irish Water off the State’s balance sheet.

The Fianna Fáil leader, Micheál Martin, called on Mr Kenny to make “a comprehensive statement” on the Eurostat ruling as he argued that the failure of Irish Water to get approval as a standalone semi-state operation exposed the Government’s “disastrous” water policy for what it is.

He said: “The fact that Irish Water has failed to meet the Eurostat test is a damning indictment of the policy that has been adopted and the rush to establish the agency and bring in water charges.”

“The EU has completely exposed the lie at the heart of the Irish Water horror story. Irish Water will not be able to stand on its own without government financial aid unless it increases water charges.”

Fianna Fáil has said it would dismantle Irish Water — if put in power — but has failed to say how much a wind-down of the company would cost. The party disputes government claims though that it could be in the region of €900m.

Socialist TD Paul Murphy, who has led the water charge protests, said the ruling would strengthen those opposed to Irish Water.

“The writing is now on the wall for the Government on this issue, it really is, they really should just accept the reality that it’s finished, they’re not going to get this through, there’s no way that people are going to pay it.

“In reality, non-payment figures will likely rise in the next billing period and if this Government isn’t forced to abolish, the next government certainly will.”

Mr Murphy told RTÉ that the cost of actually scrapping Irish Water would be minimal.

Sinn Féin said that the Coalition needed to accept defeat, abolish the charges, and put people’s right to water into the Constitution.

The public were not fools, said the party, and now knew that water charges would have to be increased for the utility to ultimately pass the Eurostat test in the future.

Renua Ireland leader Lucinda Creighton said that Irish Water could fund itself, but that the Coalition needed to “go back to the drawing board” on the project.

Social Democrat TD Stephen Donnelly called for an immediate halt to the water-charging scheme and for an “open and transparent review” of the financial model for Irish Water.