Water refunds due by end of the year
The news comes as middle- and low-income families will see tax reductions in the budget, Finance Minister Paschal Donohoe confirmed to his Fine Gael ministerial colleagues.
In a move which is set to cost €300m, ministers will approve the scheme which will see refunds paid to most households by cheque by Christmas, senior government sources confirmed last night.
Housing Minister Eoghan Murphy is to seek approval from his colleagues to allow Irish Water issue the refunds to those who paid water charges.
The Irish Examiner understands that the refunds will be paid for out of savings found across other departments, and that the entire amount paid by homeowners will be refunded in one payment.
“The Cabinet is to approve the refunds which will go to most homes by the end of the year. Some complex cases may take a bit longer, but technical details have been ironed out to allow this happen now,” said a senior Government source.
Three quarterly payments were made by homeowners to Irish Water between late 2015 and 2016 before charges were suspended after the signing of the confidence and supply deal between Fine Gael and Fianna Fáil.
Taoiseach Leo Varadkar made the promise during the summer that the charges would be paid back, and despite some criticism of the decision as to its affordability, the move is part of a package from Fine Gael to reward struggling families.
It has also been confirmed that Mr Murphy is set to bring a memorandum on the future funding of Irish Water to the Cabinet next week.
The Irish Examiner has confirmed that Mr Donohoe told a meeting of Fine Gael ministers late last night that he wants to see progress on reducing the high rate of taxes paid by the squeezed middle as well as the lowest earners.
Mr Donohoe, a Dublin-Central TD, briefed his party colleagues on the approach he intends to take to the upcoming budget which will include a focus on preparing for the future.
According to sources, he also told ministers resources will be used to invest in better opportunities for people and targeted income supports.
“Paschal relayed the message of prudent management of the economy, he is loathe to do anything reckless but he is too facing a battle as many ministers want more money to spend,” said one minister.
Mr Donohoe advised ministers on the messaging and approach that should be taken ahead of October’s budget. While there will be some tax reductions and giveaways, it is understood he said a major focus will have to be placed on reducing our debt, cutting borrowing and ensuring Ireland is financially able to withstand external factors such as Brexit.
Mr Donohoe is also set to bring a memo updating his colleagues on the 10-year capital plan.
Meanwhile, the Cabinet is expected to receive updates on the recent flooding in Donegal from the minsters for defence and agriculture.
The damage caused by the severe weather last month, which saw a month’s rain fall in hours, is still being assessed. However, both the Department of Social Protection and Red Cross now have supports in place for those who had homes damaged as well as businesses and community groups who were impacted by the freak flooding.
Justice Minister Charlie Flanagan will also brief the Cabinet on the Garda reports, including a report in the breath-testing scandal.
It is understood Defence Minister Paul Kehoe will also bring forward a memo proposing the establishment of a working group under the Government’s taskforce on emergency planning.
This group will be asked to look into creating a standing humanitarian scheme which could be accessed in the wake of severe weather.
