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€100 water charges grant WON'T be scrapped, despite EU concerns

The European Commission is concerned about the Government’s revised water charges package.

Updated: 10.15am

THE EUROPEAN COMMISSION has expressed concerns about the Government’s revised water charges package.

In a draft report as part of its review of Ireland’s post-bailout economic progress, the Commission said the extent to which Irish Water can borrow on the markets has yet to be determined.

The document warns that the utility may not be able to become self-funding as charges will be capped until the end of 2018.

If Irish Water fails its market test set by Eurostat in April, it could mean the budget deficit would be increased by about 0.3% of GDP. Independent TD Mattie McGrath said this would be a “nightmare situation”.

Fianna Fáil’s Environment Spokesperson described the draft report as “another blow to credibility of Irish Water”.

Irish Water was the wrong model, implemented disastrously. Hundreds of millions, which should have been invested in infrastructure, has been poured into this fiasco.

Sinn Féin’s Finance Spokesperson Pearse Doherty said the water conservation grant of €100 for each household is in danger as the Commission view the payment as “an Exchequer transfer to Irish Water” and so might force the Government to put the €160 million set aside for this onto its books.

“It was unbelievably arrogant or naïve of the Government to expect the EU Commission to see the so-called water conservation grant as anything other than an exchequer transfer.”

The whole revised package is now in serious doubt. If the Government’s plans fail the market corporation in test in April, I believe that the Government will then move to get rid of the water conservation grant altogether while pressing ahead with full water charges.

Speaking on Morning Ireland, Doherty again called on the Government to scrap the charges entirely.

He said there is “absolutely no certainty” over the charge remaining at €60 for single-adult houses and €160 for all other households, as announced by Environment Minister Alan Kelly in November.

No question

A spokesperson for the Department of the Environment said there is “no question of abolishing” the grant.

The grant is universal – payable to Irish Water customers and households with private wells, septic tanks and on group water schemes. It is not part of Irish Water’s revenue and is not part of the funding model for the utility.

The spokesperson compared the grant to the fuel allowance, which is also paid by the Department of Social Protection and does not form part of the revenue of energy companies.

He added that decisions on off-balance sheet treatment are “a matter ultimately for Eurostat, which is independent in its function in this regard”.

“The Government is confident that the underlying funding model for Irish Water supports increased investment in the sector with off-balance sheet treatment while balancing with charges which are affordable, clear and certain.”

Originally published: 10am

Read: Government accused of ‘complete hypocrisy’ over Irish Water board … but they’re having none of it

Read: Have you registered with Irish Water? Almost half of those liable haven’t

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    Mute Michael cunnane
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    Jan 7th 2015, 3:37 PM

    Hang on a second !

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    Mute Joanna
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    Jan 7th 2015, 4:38 PM

    Hold on there now…time lord is a legit occupation?

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    Mute Cupid Stunt
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    Jan 7th 2015, 5:16 PM

    This is great news. I’m really going to use this extra time to catch up on all those little jobs I’ve meaning to get around to, or perhaps a lie in would be better.

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    Mute Ciaran De Bhal
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    Jan 7th 2015, 3:55 PM

    I had an anti climax once. She met a fella on a cruise after a few vodkas.

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    Mute Gagsy 99
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    Jan 7th 2015, 3:39 PM

    I don’t understand most of that.

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    Mute Alan Lawlor
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    Jan 7th 2015, 4:30 PM

    Good. I work in IT and the more people who do not understand it, the more we can charge (rubs hands with glee, pets white cat on lap…. muohahahah !)

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    Mute Kim Prylowski
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    Jan 7th 2015, 6:39 PM

    As the earth’s rotation slows, days are getting longer

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    Mute andrew haire
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    Jan 7th 2015, 3:40 PM

    Y2K was a damp squib, nothing happened, but lots of it companies made a lot of money out of it.

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    Mute Gagsy 99
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    Jan 7th 2015, 3:47 PM

    but maybe if all that money and effort was not spent it would have been a very wet squib?

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    Mute Gagsy 99
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    Jan 7th 2015, 3:48 PM

    I mean a very dry squib of course.

    what is a squib and why is a damp one such an anticlimax?

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    Mute Simon Barnes
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    Jan 7th 2015, 4:59 PM

    a squib is type of explosive , a damp one won’t explode.

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    Mute Amused Bystander
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    Jan 7th 2015, 6:34 PM

    ……you sir, are a fountain of knowledge…. now I need to look this up, where did I leave my google?

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    Mute Unknown
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    Jan 8th 2015, 2:11 PM

    Actually issues did happen:
    http://www.cs.swarthmore.edu/~eroberts/cs91/projects/y2k/Y2K_Errors.html

    Also, most bank software programmers [and this was mostly in COBOL at the time] spent a long time working crazy hours getting sh*t together and correct so that stuff like applying 99 years of credit to accounts wouldnt happen.

    There is another one feasibly going to come in 2038 when the unix epoch time rolls over to zero again. Thankfully it only affects 32-bit-integer related systems, but still gonna be hilarious….

    B

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    Mute andrew haire
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    Jan 8th 2015, 9:35 PM

    A squib was a very little stick of dynamite that you could buy in the boys store before all this health and safety nonsense took hold. When a kid was allowed matches you could light them to blow up little bunkers of sand where the enemy toy soldiers were, classic.

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    Mute Micheal S. O' Ceilleachair
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    Jan 7th 2015, 4:46 PM

    God says: To me a thousand years is but a second. However I will grant you your greatest wish.

    Pope Francis: Okay God I wish to win the Euro Lotto €180,000,000.

    God says: Your wish is granted!! Wait a second!!!!!

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    Mute Joe Bloggs
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    Jan 7th 2015, 3:49 PM

    Is it April the 1st?

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    Mute stephen
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    Jan 7th 2015, 3:52 PM

    If it was that would be nearly 4 months less.

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    Mute AntiTreeHugger
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    Jan 7th 2015, 3:55 PM

    This is very confusing

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    Mute Negativebird
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    Jan 7th 2015, 7:54 PM

    It isn’t really confusing.

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    Mute AntiTreeHugger
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    Jan 7th 2015, 8:32 PM

    I’m delighted for you. But I find it is.

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    Mute Colin Byrne
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    Jan 8th 2015, 2:48 PM

    A day lasts 24hrs because that’s how long it takes to spin around once. Except that its always gradually slowing down so the eggheads add an extra second to one particular day every few years to compensate. This angers god hugely, who retaliates by setting off volcanoes and smiting old people, etc.

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