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THE DEPARTMENT OF the Environment has accused Sinn Féin of using a broken calculator in relation to scrapping water charges.
Irish Water expects the income from domestic customers to total €271 million this year, while non-domestic customers will pay €229 million – giving a total billed income of €500 million.
Sinn Féin’s Pearse Doherty told TheJournal.ie the Government is deliberately trying to “confuse and muddy the waters” by saying scrapping the charges would cost upwards of €500 million.
The party’s finance spokesperson said that substantial money would be saved through not having to pay the water conservation grant (€130 million) and eliminating billing customers (€22 million). The income from commercial water rates would remain.
He said his party would make up the shortfall created by scrapping domestic charges, while also raising funds to invest in water infrastructure, through a number of measures.
These were outlined in the party’s pre-Budget submission, and include introducing a third rate of tax (48%) for people who earn over €100,000 a year, and raising capital gains tax and capital acquisitions tax to 40% each.
The Donegal South-West TD added that his party would also recoup some of the €539 million being spent on installing water meters.
Following some confusion on the subject, he told us Sinn Féin has “no intention” of increasing commercial rates to raise extra cash.
“If we were in Government tomorrow – we don’t expect an election tomorrow but, we would immediately cease the water meter installation programme,” Doherty said.
However, a spokesperson from the Department of the Environment said: “Yet again Sinn Féin’s calculator isn’t working.”
Abolishing the charges would leave our water system short of €271 million straight away. In addition, expenditure by Irish Water in 2015 would not be classified as ‘outside Government’ under Sinn Féin’s proposals.
“If the revenue and expenditure of Irish Water were classified as part of general Government, it is estimated that this would increase the deficit by approximately €524 million in 2015 as well.”
The spokesperson added that investment in water infrastructure is increasing by 21% this year, up from €340 million in 2014 to “at least €410 million”.
He said that transferring investment from the metering programme to other capital investment in water infrastructure in 2016 is “unlikely to result in a major increase in investment as 80% of the project is due to be completed by the end of this year”.
“The proposed Sinn Féin alternative does not address where the remaining capital for infrastructural investment would come from if metering were to only part-fund investment. Furthermore, the metering programme has been critical in identifying where lead pipes remain within the water system.”
Last month the European Commission expressed concerns about the Government’s revised water charges package, which was announced in November. In a draft report as part of its review of Ireland’s post-bailout economic progress, the Commission said the extent to which Irish Water can borrow on the markets has yet to be determined.
The document warns that the utility may not be able to become self-funding as charges will be capped until the end of 2018.
At the time, some opposition TDs including Doherty warned that the water conservation grant could be scrapped as a result. However, the department said there is “no question of abolishing” the grant.
Doherty said the Government is in serious jeopardy of not passing its upcoming market corporation test, accusing Fine Gael and Labour of engaging in “accountancy trickery” to prevent this from happening.
In order to pass the test, Eurostat must be satisfied that the €130 million due to be spent on the conservation grant is not part of Irish Water’s funding model.
Doherty said it will be “very, very difficult to suggest it’s not a direct transfer to Irish Water from the exchequer” but the Government is “hellbent” on doing so.
“The reality is nobody know [if Ireland will pass the test]. We don’t know, the Government doesn’t know,” he added.
The semi-state body received a Government subvention of €439 million in 2014 and is due to receive €399 million and €479 million in 2015 and 2016 respectively. It is expected to borrow additional funds from international markets.
Earlier this month, Environment Minister Alan Kelly told RTÉ’s News at One that Sinn Féin deputy leader Mary Lou McDonald’s attempt to clarify how her party would raise the funds lost by scrapping charges was “pure waffle”, referencing an earlier interview with the station.
McDonald told us it’s “a bit rich for Alan Kelly to be talking about waffle” given some of his performances in Dáil debates on Irish Water.
She said the Government is making up their approach to water charges “as they go along” and hoping on “a wing and a prayer” resistance will peter out.
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photo caption should read Seoul, South Korea not Seoul, North Korea
I have booked a pub crawl trip for St Patricks Day 2018 to North Korea (Seriously).
A war would be very inconvenient for my travel plans.
They’re some lads for the parades alright.
How crazy is it that a place like North Korea exists in 2017!!! They obviously do not care about ‘sanctions’- so how do you deal with them?
The same could be said about a lot of Middle Eastern and African countries.
@Martin Flood: I agree. Nobody should be starving or in slavery in 2017.
@Martin Flood: Middle East had oil so that’s why you see a lot of invasions to save the people.
I don’t remember too many invasions of African countries to save the people, probably because they don’t have oil. Rwandan genocide is a prime example.
Fat Boy doesn’t have to worry about sanctions. He and his favoured ones get all the Camembert and Chateau Petrus they want to keep them happy. And everyone else doesn’t care because they wouldn’t be getting any with or without sanctions.
How many Irish ministers are going to North Korea for Paddy’s day?
The problem is China will always back North Korea.
It’s time to remove north korea. Pack of idiots.
@Keith Fay: how do you propose we do this? Without killing 24 million people…
@Keith Fay: We are already killing them slowly with global sanctions. The little fat dear leader isn’t hurt by famine his people are.
@Keith Fay: Good man Keith. You lead the way.
Haha. Nah you’re right they’re grand.
@Andy Wallace:
your right…. the arms embargo on north korea are starving the civilian population
Nuke ‘em. Do it now.
@Kieran Jones: And the fall out? I don’t think Japan and South Korea would appreciate that.
Less not forget North Korea ally – China, one of the world’s most powerful nuclear powers. Even if they don’t retaliate the fall out would effect them as well and they produce a hell of a lot of items for world markets. Fancy your kid playing with a toy from China after the fall out?
@Kieran Jones: Go back to your PlayStation.
@Kieran Jones: Kieran, you do know reality is very different from your XBox world?
Kieran I know how you feel we were all waiting for “Duke Nukem Forever” for like, forever. But the studio says it’ll be done when it’s done, last time I looked. Which was about 2003…Kieran’s clearly still a believer..
If there was ever a case for dropping the big one and wiping out a nation, North Korea must be it
They have legalised cannabis in North Korea!!
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