The Expert Commission on Domestic Public Water Services was never expected to direct the Government on how it should deal with water charges. Following the election, Fianna Fáil and some Independent Ministers had rejected charges, and Fine Gael was unable to advance its agenda. So the commission was designed to promote compromise.
Rather than offering set-in-stone judgements, it set out a range of options for consideration by an all-party Oireachtas committee. To ease that process it suggests, other than in cases of excessive use, water services should be funded through general taxation.
The report has not pleased all parties, least of all Fine Gael. It has tossed decision-making back to TDs and Senators who will be expected to debate the implications of the various options outlined before coming to conclusions. Three months of public debate should dispel some of the emotional fog that has grown up around the provision of water services.
After that, the Dáil will – by way of a free vote – consider what should be done about the committee's report. The European Commission may also take an interest in whether the Water Framework Directive and the "polluter pays" principle are being breached.
A temporary suspension of water charges, as Fianna Fail’s price for supporting a Fine Gael-led Government, has served to underpin the established system of allowances. The commission merely reflected political reality and the current situation when it recommended that normal services for individuals and families should be funded from general taxation.
By introducing the concept of “excessive use”, however, it reopened – but did not comprehensively explore – issues of charges, water allowances, metering and other issues. The benefits of such approaches were clearly identified and it challenged elected representatives to take a more considered approach to issues of funding and the abuse of public services.
Judging by the reactions of political parties and groups, this issue will not go away. A suspension of charges is likely to persist as this, or the next, government tries to establish a framework that will deal fairly with those citizens who paid water charges; establish a normal level of usage; deal with the matter of metering; and provide greater certainty – perhaps though a referendum – that Irish Water will remain in public ownership.
Once again, the State is edging towards a financial abyss: narrowing the tax base and borrowing more for public services. An additional €840 million had to be found for Irish Water this year following a suspension of charges.
The utility will require €5.5 billion to upgrade sewage and water services over the next five years and it has plans to spend €13 billion in the long term. That should provide a realistic context for an Oireachtas debate and to consider what are sensible measures proposed by the commission.