Niall Collins (Limerick, Fianna Fail)
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Question 32: To ask the Minister for the Environment; Community and Local Government if he will provide further clarity on the proposed utility charge for 2012; and if this will involve the introduction of a flat rate fee. [11794/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The EU-IMF programme of financial support for Ireland commits to the introduction of a property tax for 2012 and 2013 under its fiscal consolidation measures. The programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. In the light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and, accordingly, to meet the revenue measure in the programme, I have indicated my intention to introduce an interim household utility charge in 2012 on a flat rate basis. I will bring proposals to the Government in the near future on the legislative and administrative requirements necessary to implement the charge. It is my intention that the revenues from the charge will support the provision of locally based services and, in turn, reduce local government's requirement for Exchequer support for the funding of such services.

The progamme for Government also proposes the installation of water meters in individual households and the introduction of water charges based on usage above a free allowance. My Department is preparing a strategy to implement these proposals, including the funding of the metering programme. Further details will be made available following Government consideration of the proposals. The EU-IMF programme of support further commits Ireland to introducing water charges for households by 2013 at the latest. However, no decision has been taken by the Government on the exact date for the introduction of water charges by meter.

Niall Collins (Limerick, Fianna Fail)
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I thank the Minister for his reply which is scant on detail. We are aware of the commitment in the four year recovery plan to introduce water charges and a site valuation tax, but I would like the Minister to elaborate on the new flat rate tax he has proposed because it has slipped in under the radar. I am sure his own party's backbenchers and coalition colleagues are disturbed about it. The many hundreds of thousands who voted for the Minister and his party are also alarmed that within their first 100 days in government he will introduce a new utility charge. How much will it be? How will it be levied? Who will pay it? Will there be exemptions for pensioners, the unemployed and those who cannot afford to pay? Will there be a waiver scheme? Could the Minister provide detail on the scheme, primarily, how much it will cost?

To what will the money be dedicated? Will it go into the local authority pot or will it be channelled in a specific direction? Will it be specifically earmarked for the provision of water meters and to cover the cost of their installation?

There is scant detail on the scheme. At the weekend The Sunday Times posed the question, "Will the real Minister Hogan please stand up?" in regard to the matter. We seek clarity as there is confusion and there has been a muddying of the waters on a site property tax, the introduction of water charges and the new charge.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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There is no confusion on this side of the House. The schizophrenic confusion is due to the fact that the then Government, of which Deputy Collins's party was a member, negotiated with the EU-IMF programme-----

Colm Keaveney (Galway East, Labour)
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That is correct.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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-----and with Mr. Chopra to introduce a household charge.

Deputies:

Hear, hear.

Colm Keaveney (Galway East, Labour)
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That is correct.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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We are introducing what Deputy Collins's party negotiated. It is disingenuous of him to try to infer that there is a new charge. It is the same charge his party negotiated in Government.

Colm Keaveney (Galway East, Labour)
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Thank you.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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We will come forward with details on the implementation of the scheme.

Water metering will have to be paid for. The roll-out of metering will start in 2012. It is a water conservation measure. A lot of water is wasted. The lack of water conservation is now coming home to roost. Following the past two winters people now appreciate more than ever the importance of having good quality and quantity of water rather than be forced to have an inferior system and to purchase bottled water in shops. I wish to ensure we have a good water conservation strategy based on usage rather than a flat rate and that every household would have a quality and quantity of water paid for by the State and by the taxpayer in a fair way over and above a free, generous allowance for each household. I do not take on board the suggestion put forward by the Deputy opposite that this is a new charge. It is the same one his party negotiated when in government.