Colm Keaveney (Galway East, Fianna Fail) | Oireachtas source

The personal debt crisis is fraught with economic, financial and, most important, social consequences. The Government has failed to address the issue of mortgage debt. Today, it has even failed to tackle the banks on their gouging of customers with interest rates that are well above the European average. Fianna Fáil has proposed constructive and workable solutions to the issues of mortgage debt and interest rates, but these have been ignored by the Government. Consequently, a significant number of families and individuals have been left struggling with debts in a state of stress and discomfort. Fine Gael's instinct in particular is for people to be punished for their debts. They must be paid no matter the consequences for the individual, family or society. Recently, Fine Gael extended this approach to Ireland's foreign policy, with the Taoiseach and the Minister for Finance, Deputy Noonan, all too eager to act as Germany's boot boys in respect of the crisis in Greece.

The Environment (Miscellaneous Provisions) Bill 2014, a Bill that was suggested to be of variable purpose, was rammed through the House. As with it, the manner of this Bill's introduction and the lack of proper oversight are to be deplored. One would imagine that a Bill that deals with aspects of personal debt crisis would be published, with interested groups, civic society and organisations that work with debt on the front line invited to participate in the pre-legislative process, but they were ignored. One would also imagine that the Legislature would be given a decent amount of time to scrutinise the Bill, seek and remove its defects, identify unintended consequences and endeavour to improve it. The Government is intent on treating it almost as emergency legislation and plans on ramming it through the Oireachtas before the recess.

We know the cause of the Government's significant haste in this respect and of its undemocratic determination in its manoeuvring on the Environment (Miscellaneous Provisions) Bill, namely, Irish Water and the need to pass the EUROSTAT test regardless of whatever ludicrous steps are required to do so.

The hastily written explanatory memorandum makes clear that much of the inspiration for this Bill came from a Law Reform Commission, LRC, report published in 2010 on personal debt management and debt enforcement. The removal of imprisonment of debtors, or at least for most categories of debtor, is welcome, but imprisonment, particularly where other solutions exist, is not a suitable method for addressing civil debt issues.

This debt enforcement Bill forms part of a new suite of legislative measures that the Government has been forced to introduce as a mechanism to shore up against the inadequacies of Irish Water. These measures are aimed at convincing European officials of the financial viability of the company. The real appeal of this Bill for Fine Gael and Labour is that it will allow attachment orders to be made against wages, salaries and social welfare payments to cover Irish Water bills. The Bill will permit Irish Water to dip its hand into the pockets of citizens and remove whatever deposit money they may have, given the Government's intention to pursue the Irish Water super quango. This measure has been expected since last May when the Government indicated that households that refused to pay Irish Water bills would be pursued through the courts, with attachment orders placed on their earnings and social welfare benefits. This measure was announced in light of the increasing expectation that a large percentage of households would refuse to pay their bills.

12 o’clock

We do not know how many households have refused to pay, as the Government has refused to provide such data or information for the House. It is estimated, however, that over 400,000 households are refusing to pay. Some are refusing to pay because of a flat objection to water charges, while others are doing so because water services are substandard. There are, however, many people who have no objection in principle to paying water charges but do object to paying charges to a wasteful, bloated and bungling super quango.

The problems with Irish Water cannot be laid at the door of its management or staff but relate to the manner of its creation and the subsequent U-turns and inconsistencies in the Government’s policy. The blame rests with the Government. The establishment of Irish Water has been a shambolic debacle and embarrassment. The public have little confidence in it, as evidenced by the numbers who are still refusing to register or pay. In my experience, many who paid did so out of respect for or fear of the law and did so through gritted teeth. It would be a mistake for the Government to see the numbers who have signed up and paid as a significant vote of confidence. It most emphatically is not.

So far, not one extra cent has been spent on improving water infrastructure. So far the Government has failed to match the investment made by previous Governments. Over €540 million has now been spent on the installation of water meters which sit spinning uselessly in the ground. While water conservation was one of the stated objectives of Irish Water, the decision not to meter the charge flatly contradicts that aim. Meanwhile, the meters rust. Over €172 million has been spent on setting up Irish Water, with a running cost of €46 million a year. The so-called water conservation grant, paid for in part by cuts to lone-parent allowances, will cost the State €165 million, all to raise €140 million a year. It will not even raise that much, as the sums simply do not add up. Alongside all of the above, money is being sucked out of local authority services into Irish Water. Even though it is a so-called stand-alone company, it is exempt from local authority rates, despite the fact that it is a company which benefits from taking over local authority assets and whose workers and staff will benefit from local authority services just as any other company would. In all of this, not one extra cent of capital investment in the infrastructure will be generated.

The Government has become so distracted in cooking the books to meet the EUROSTAT test and keep the borrowings off-balance sheet that it has forgotten the purpose of a water utility, namely, to provide water services for households and businesses. It is a three-card trick with respect to Irish Water’s commercial viability. With the, frankly, terrifying financial cost of Irish Water, there are also the significant levels of civil disobedience and degradation of the citizens’ relationship with the State. This is not a democratic revolution. This is government in spite of and against the people. The Bill, serving as it does to extend Irish Water’s reach into people's wages and social welfare payments, is yet another extension of that government in spite of the people. The Government must reflect on what it is doing and why. Will it, at least, consider it might be wrong and seek a better way? To go on with the project in a financially imprudent manner is damaging the quality of our democracy and the relationship with citizens.

See this speech in context