Customers will pay for any future losses at Irish Water

The Government says Irish Water has to be a non-state, independent entity. Why? 

So that Irish Water can borrow independently and as long as Irish Water is not overly subsidised by the State, its borrowings, costs, losses, etc will not have a negative impact on the country. So, where is the danger? Well, this also means that any present or future government would be unable to resolve losses, or capital shortfalls in Irish Water. Equally, the State would be unable to repay Irish Water’s loans or its (possibly excessive) interest charges. In such circumstances, water charges would increase and it would be the ‘customers’ who would be liable.

Conclusions: 1) Placing the borrowings and costs of Irish Water “off-balance sheet” is an expedient accounting wheeze, which may result in a short-term benefit to Ireland’s budgetary position. 2) Conversely, an “off-balance sheet” Irish Water could result in remorseless increases in future water charges.

Will future generations ask how people allowed such a monster to be created?

Alan Egan

Knockrea Lawn

Ballinlough

Cork