GOVERNMENT ENGINEERS PERFECT STORM OVER WATER FUNDING
GOVERNMENT ENGINEERS PERFECT STORM OVER WATER FUNDING
- 190,000 households are on group schemes.
- Equity between rural, urban and business necessary
The Commission on the Future Funding of Domestic Water Services issued its report on 29th November. It suggests that most domestic water provision should be funded via general taxation. While ISME admires the political alacrity of the Commission, their report raises many more questions than it answers.
Before the establishment of Irish Water (IW), charges for non-domestic (business) water were set by 44 billing authorities, levying over 500 different charging methodologies. The Commission for Energy Regulation (CER) was trying to streamline these tariffs via IW. This process is now in doubt.
ISME CEO Neil McDonnell commenting on the findings said “The report states that funding of water should primarily come from general taxation. This is welcome if it applies equitably to SMEs and to those on group water schemes. Currently there are over 190,000 households on group water schemes, 170,000 using private wells, and thousands of SMEs paying metered or unmetered charges. How will a policy of funding through general taxation apply to the tens of thousands who have been paying for water for decades?”
The uncertainty surrounding IW means that the standardising of business tariffs, and the prudent management of rural water schemes are now in doubt. The attempt to find a ‘clever’ solution to the vexing issue of water charges risks back-firing on the Government. If SMEs and rural dwellers are discriminated against in order to appease a vocal but small urban minority who refuse to pay for a utility, the main political parties risk a serious back-lash.
To date, the charges debate has been framed as a choice between ‘water charges’ and ‘no water charges.’ This is utterly dishonest and misleading. Ireland must spend on its water infrastructure. The only choices are ‘how much?’ and ‘by whom?’ The fewer that pay, the higher the burden will be, and the longer the repair of our infrastructure will take.
Budget 2017 allocates €270m for Irish Water. IW will spend €200m on the upgrade of just one water plant in Vartry. There is simply no way that the required €13bn of capital expenditure identified by Irish Water will be paid for through general taxation.
ISME would like answers to the following:
- What will happen to the water charges already paid by domestic users?
- Will there be a subsidy/rebate for the 190,000 people on group water schemes?
- In order to measure excessive consumption, will water metering be reintroduced?
- Will SMEs be able to benefit from this general water taxation policy?
Adding “People are tired of the can-kicking of the water issue. We need to get it right this time, in a transparent and fair manner. To date, the only ones who have suffered are the law-abiding. This issue won’t go away. It’s time for the Government (and opposition) to hit the ‘reset’ button on the water charges issue this comes back to haunt them later.” concluded McDonnell.
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