Tánaiste Eamon Gilmore has insisted the introduction of water charges will not result in the privatisation of water services.
He disputed a claim by People Before Profit TD Richard Boyd Barrett that under EU rules, any revenue generating tax becomes subject to normal competition rules within the 27 member states.
Speaking in the Dáil this morning, Mr Gilmore told his Dún Laoghaire constituency colleague there was no point “trying to find a big bad wolf where none exists”.
Mr Boyd Barrett insisted however it was “clear as day” - under Article 106 of the treaty on the functioning of the European Union - that water metering and charges would result in the privatisation of water.
Quoting the treaty, he said: “Services of a general economic interest or having the character of a revenue-producing monopoly - which is what the new semi state will be - shall be subject to the rules contained in the treaties, in particular to the rules on competition.”
Mr Boyd Barrett asked how the installation of water meters would "decontaminate water or rehabilitate the decrepit pipe infrastructure”.
He said meters had one effect, which was “to allow the Government to charge people for the provision of water”.
He asked the Tánaiste: “Why are you going to waste a year and a half installing water meters instead of putting thousands of people to work rehabilitating our water infrastructure?”
Under the treaty rules he said, private companies will be able to take the Government to court if it does not allow for open private competition in the area of water services and if it becomes a “revenue-producing service”.
Urging him not to look for “a big bad wolf where none exists”, Mr Gilmore said one of the main purposes of having a meter system was to conserve water. There was a considerable amount of overusage of water, he said.
“The Government’s decision is on the basis that water will remain in public hands. That is the way in which the legislation, which will establish the water company, will be framed,” he said. “Water is not being privatised. It’s not going to be privatised and there is no question whatever of this.”
