Seanad debates
Tuesday, 10 December 2013
Water Services (No. 2) Bill 2013: Committee Stage
8:15 pm
Sean Barrett (Independent) | Oireachtas source
The ability-to-pay principle is important. This is a tax. In the tax system we have a tax free allowance, a standard rate and then a higher rate. If we are substituting water charges for taxation, these principles should be taken into account.
The €740 figure for water charges comes from the website www.moneyguideireland.ie. The Government stated it would be a smaller charge of €370 in the 2012 IMF review and that it hoped to earn €500 million, not €1 billion. The Minister claims we could invest money to bring the charge down. It would take a quick turnaround. For example, one can invest in larger aircraft to reduce fares. I do not know what timeframe we have in mind over which investment in the water infrastructure would immediately result in a reduction of charges below the €740 mark.
The ability-to-pay provision is an attempt by Senator Ó Domhnaill to genuinely introduce an element of humanity to this legislation. It is unfortunate, again, that we have chosen the electricity pricing model. Every Member has a complaint about the electricity industry’s prices and policies on pylons. It is essentially not big on public or human relations. We have to take account of ability to pay. If Irish Water is not constrained to take account of people’s needs, on top of all the extra taxation they have borne over the past several years, it will ride roughshod over them.
Will the Minister consider a similar amendment on Report Stage? Another poll tax will drive people to the brink.
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