No plans to tax drinking water - Ahern

Just 24 hours after the Government unveiled its toughest budget in more than a decade, Taoiseach Bertie Ahern today insisted there were no plans to tax water.

He made the comment after a high-profile group of independent experts, appointed to advise his coalition administration ahead of the budget, urged consideration of a charge for drinking water.

The panel – who included former Irish Central Bank chairman Maurice O’Connell and ex-Revenue Commissioners’ chief Dermot Quigley, and were known as the three wise men – recommended the review of a number of fiscal policy areas.

As well as the water idea, they said Ireland’s state-backed CIE transport company should be reformed and called for a new look at all forms of Government payments in areas like health and education as part of a bid for a more targeted approach.

They also backed means-testing for home improvement grants for the elderly and people with disabilities, and a rationalisation of schemes to promote social inclusion, as well as an assessment of the number of army barracks, police stations, schools and health service facilities.

But it was the water charge concept that prompted questions today in the Dail as the budget debate continued in the face of condemnation by opposition parties.

Yesterday’s proposals from Finance Minister Charlie McCreevy increased duty payable on some alcoholic drinks and motor fuel, changes that came into effect at midnight last night – but left water untouched.

And asked today whether there were plans to put a price on water, Mr Ahern declared “There is a water services bill, but no proposal for taxes.”

He said the views of the advisory group were taken into consideration during the decision-making process, but it was the job of government to evaluate choices and make final decisions, taking all factors into consideration.

Maintaining the attack on the Government, Fine Gael opposition party leader Enda Kenny said the budget was a “gutless and soulless silent killer, bankrupt of decency and morality.”

He also accused the two parties in Government of abusing the public purse to bankroll their political survival.

Labour Party leader Pat Rabbitte said Mr McCreevy was “the most irresponsible holder of that office in the history of the state.

He also claimed that government borrowing was not the result of prudent decision-making, but of “the most disgraceful sustained massive exercise in vote-buying” in last May’s general election.

He added “Social welfare recipients are getting 30 eurocents. It would not buy a box of matches. This is a matchbox budget.”