WATER CHARGES would apply only after a generous free allowance had been used, Taoiseach Enda Kenny has said.

“Of course, the Government, in making its decision, will take into account those who are in distressed economic circumstances, whether because they are on social welfare or low incomes, or because of their mortgages,” he added.

Mr Kenny said he could not say what the annual bills covering property and water would cost householders.

He added that Minister for the Environment Phil Hogan had signalled clearly the Government’s intention to implement its programme for government and comply with the conditions of the EU-IMF deal.

“The Government has not made a decision about the nature or the scale of the system,” the Taoiseach added.

Sinn Féin leader Gerry Adams said hundreds of thousands of people were coming to terms with the prospect of the two new stealth taxes announced by Mr Hogan.

“Despite all the pre-election promises from its Labour Party colleagues, we now know that new water charges will be introduced, along with a new household charge,” he added.

The Minister, said Mr Adams, had said the purpose of the water tax was to reduce waste, yet 40 per cent of water was lost because of the leaking mains supply system.

He suggested the €500 million earmarked for the water meters be spent on improving the system, creating jobs and reducing waste, without imposing additional taxes on hard-pressed working families.

Mr Adams accused the Taoiseach of being unclear about what the measures will cost people.

The Central Bank, he added, had said in February that €6 billion of senior bond debt was held by Anglo Irish Bank and Irish Nationwide. A modest 50 per cent reduction would save the State €3 billion. “Would it not be better for the Government to face up to these bad banking debts than to follow the diktat of the EU and IMF and Fine Gael’s own instinct on matters to do with privatisation?” he asked.

Mr Kenny said Mr Adams was aware the Government had made a decision to reverse the cut in the minimum wage and that serious changes would be implemented in respect of the medical and legal professions.

“Everyone in this society is able to make a contribution,” the Taoiseach added.