Paul Bradford (Fine Gael)

That is the history of Fianna Fáil on water charges, rates and service charges.

To use an awful phrase, we are where we are. It is time we had a balanced and mature debate on water charges and the broader question of local authority funding. Our system of local government is broken. Rather than a simplistic motion on water charges or household charges, the Seanad should debate the funding of local government which is a topic of serious concern. If this debate took the form of statements, it would be helpful.

I appreciate much of what has been said by Members on the other side of the House. The classic argument can be made against taxation in the form of a flat charge not based on ability to pay. Probably the most successful tax introduced by any Government in recent years is the €200 tax on second houses. It has not brought in a huge amount of money, but it has yielded what it was scheduled to bring in. From a classic taxation perspective, it is not entirely fair. It is not related to family wealth, the size of the second house or the use to which it is put. However, because the tax is minimal, clear cut and can be simply paid on-line, 95% of those liable to pay have done so. In that regard, the concept of a low rate service charge is something we should not automatically rule out.

I did not hear the Minister's speech, but I read his script. He has reminded us of the commitment Ireland entered into as part of the bailout conditions. Charges are now on the agenda and we need a detailed and serious debate. Water is not free. Somebody, that is, the taxpayer, is paying for it. There is no free service. One of the great scandals is the amount of water being wasted throughout the country. Every local authority is to blame in this regard. The piping network in many towns, cities and villages is very old and urgently needs to be repaired. The Minister of State, Deputy Fergus O'Dowd, has come into the House and I know he has responsibility for the broader project of the NewERA document. That is the route we must travel. We need to replace our water system and the piping network both in town and country. I have read that as much as 70% of water is wasted. We must address this problem. Doing so will be expensive.

I do not have all the answers. I recognise that water services must be paid for and that local government is grossly underfunded. Income tax is at a penal level for most. People claim there are billions of euro to be collected in wealth tax. They make projections and statements for base political motives, but the figures do not stack up.