Ireland will be exposed to European Union enforcement proceedings if it abolishes water charges permanently, Fine Gael has warned.
The party has reiterated its commitment to a charging regime in its submission to the expert commission that is considering what approach the State should take to funding domestic public water services in future. The recommendations of the expert commission will be considered by an Oireachtas committee, and a Dáil vote on the issue will follow.
Fine Gael said it was committed to the retention of a “fair” charging regime which offers allowances to those with high water usage, those with children and those with a medical need.
The party insists that Ireland cannot continue to pay for water through general taxation.
Its submission says: "Fine Gael also agrees with the view of the European Commission that Ireland no longer has a derogation from domestic water charges under the Water Framework Directive.
“The ‘established practice’ was altered by an Irish government decision in July 2010 to introduce domestic water charges . . . which was included in the subsequent Memorandum of Understanding with Ireland’s external funding partners.”
Financially exposed
Fine Gael said it believed, after the establishment of
Irish Water
and the introduction of domestic water charges, that a decision “to permanently abolish water charges will leave Ireland financially exposed to EU compliance proceedings”.
The European Commission has previously indicated that it could enforce daily fines if the charges are abolished.
Fine Gael sources criticised Fianna Fáil’s position on abolishing water charges.
In its submission to the commission, Fianna Fáil said the entire system should be funded through general taxation and that it had no plans to reintroduce charges.
Senior Fine Gael figures said Fianna Fáil was willing to accept a charging regime at one point during negotiations on the formation of the minority Government. The party had agreed to charge for water, with generous allowances included, but got “cold feet” and backed off, Fine Gael claimed.
Fianna Fáil has insisted there is no public appetite for the imposition of charges. The party’s submission stresses that the abolition of water charges is based on solid legal grounds and will “bring an end to the failed regime introduced by the previous government . . . Owing to the failure to implement a fair and effective water charge regime and the end of financial emergency measures, it is impossible to see how water charges can remain.”
Legal advice
The party has insisted it has legal advice which insists charges can be abolished without breaching the EU water framework directive.
Fianna Fáil's environment spokesman Barry Cowen said refunds for those who have paid should be examined, and suggested offering a tax credit.
Sinn Féin yesterday published extracts of its own legal advice, which said the charges could be removed without breaking EU law. Lynn Boylan MEP summarised the advice on the levies given by Matthias Kelly QC of Essex Chambers.
Ms Boylan said the legal opinion stated that the abolition of water charges would not contravene the EU’s water framework directive. She said the advice indicated that the State could still meet the objectives of the directive if it it could demonstrate that it was paying for water and conserving water.
Asked if the party would publish the legal advice in full, Ms Boylan said: “When Irish Water publishes its legal opinion we will then consider publishing ours.”
