WATER CHARGES will not be imposed until meters have been installed in every household in the State, which is expected to take three years, the Dáil has heard.

Installation of meters is expected to start next year, once a water authority has been established, and will initially cost €500 million. But repaying that investment could cost up to €1 billion, Minister of State for Environment Fergus O’Dowd said.

During question time in the Dáil Mr O’Dowd said a new water authority, Irish Water – to take over supply and maintenance from the 34 local authorities – would be established first. He hoped the legislation would be ready before the end of this year.

Some 1,800 people would be employed for up to three years installing the meters. “There are difficulties in certain areas and with certain housing types,” he said. “It can be very expensive to install meters where people are living in blocks of apartments.”

Pressed by Fianna Fáil spokesman on natural resources Willie O’Dea about when the charges would begin, Mr O’Dowd said that was a matter for the Ministers involved.

He said the introduction of the charges was the responsibility of Fianna Fáil. “The only reason this is happening is that the Memorandum of Understanding signed by the previous government with the IMF and the European Union forces it upon this and succeeding Governments – it is the origin of the charges.”

Mr O’Dea pointed out that it was included in the Fine Gael party manifesto. “It was a commitment given by Fine Gael also in the manifesto.”

Mr O’Dowd replied: “We had no choice.”

The Fianna Fáil spokesman rejected this and said: “Fine Gael indicated in advance of publication of the IMF deal that it intended to do something along these lines.”

He added that during question time last October Minister for the Environment Phil Hogan, then Fine Gael spokesman, “said he agreed with the idea of controlling the use of water because it was a finite resource. Therefore, let us dispel that notion”.

Pressing Mr O’Dowd about when the charges would begin, Mr O’Dea said “if a certain amount of water will be provided free and use of water beyond that amount will incur a charge, how can charges be introduced before a system has been rolled out?”

Mr O’Dowd said the “years 2012 and 2013 were mentioned in the deal agreed by the last government”. Because of the problems expected with the installation of meters, 1,800 people would be employed for three years to install them in every home. “I presume that when all of that has happened, there will then be a decision on charging. The whole idea in metering is to conserve water.”

If meters were not installed 5,000 people would be employed in repairing burst water mains and other problems.

Asked who would pay for the meters the Minister said the National Pension Reserve Fund agreed to provide the money. “We can pay back the money over ten, 15 or 20 years, with the total figure as high as €1 billion on an initial cost of €500 million.”