John Gilroy (Labour) | Oireachtas source

-----to people will more than offset the cost of water. There is no question about that; it is demonstrable.

If we can remove water charges and any others we can from the cost of general taxation, it will leave space for the reduction of the universal social charge, and that is my reason for supporting water services charges. The universal social charge is a punitive charge, a tax on work. It was introduced as a temporary measure and it brings in €4 billion per year, which no Government would say it does not want. What we must do is try to reduce the universal social charge incrementally and the burden it places on people and work. The only realistic way to do that is to replace the income from the charge with other income. I refer to reducing the cost to the Exchequer associated with the provision of water, at a very modest cost to the public, namely, €60 per year.

Senator Ó Domhnaill’s sums are terribly wrong, unless mine are. He referred to 2% of income. A charge of €160 per year represents an income of €8,000, unless my sums are totally wrong. That is well within the margin the European Union has set out.