Irish Water set for state takeover in political deal

Irish Water is set to be taken over by the Irish state as part of a deal to create a new minority government in the Republic, it has been reported.

Fine Gael and Fianna Fáil are currently in talks to form a minority government under the leadership of acting Taoseach Enda Kenny, following the election held on 26 February. The future of Irish Water has been a major sticking point in the negotiations, with Fianna Fáil and its leader Micheál Martin committed to abolishing the utility and its system of water charges. By contrast, Fine Gael wants to retain water charging.

The two parties have now reached a deal which will see Irish Water become a state agency, with the company’s debts remaining on the State’s balance sheet, the Irish Times reports.

The deal will see the suspension of water charges until a new system with generous allowances is put into place, and Irish Water is able to complete the transition from a commercial entity to public utility. The new charging system would include a comprehensive system of waivers meaning that pensioners and social welfare recipients will no longer have to pay, it is being reported.

Talks taking place in Trinity College, Dublin are in progress with the aim of creating a minority government by the time the Dáil next meets on Tuesday. It is understood that since Kenny and Martin have come to understanding on the key issue of Irish Water, both parties are optimistic that a formal deal can be announced tomorrow.

Irish Water was created in January 2014, taking overall responsibility for water services which had previously been delivered by 34 local authorities across Ireland. Its metering programme, which have seen over 800,000 domestic properties fitted with meters, has proved unpopular with the public, as has the imposition of water charges for the first time.

This news story first appeared on wwtonline