Fine Gael-Fianna Fáil rift over water charges may spark election

Mr Coveney said that he would not, as an office holder, bring in any legislation that was contrary to EU law or the advice of the Attorney General, or exposed the country to huge fines.

Fine Gael wants some charge to remain for excessive use or wastage. The minister said Fianna Fáil had changed its position only in the last few days.

“Any [committee] recommendation has to be consistent with the water framework directive in our view, otherwise we will essentially be introducing a new water regime which would be illegal,” he said.

“And the European Commission have made it very clear that they will take action and I will not do anything that will potentially expose the State to very significant penalties and fines. I’m just not going to do that as a minister.”

The row intensified after Fianna Fáil earlier in the day revealed that it favoured refunds and an end to homes being metered, but also opposed any future charge for excessive use.

A system of refunds would cost over €160m, and an end to household metering would raise questions about the €500m already spent on water meters. Mr Coveney yesterday said he may be willing to consider the option of refunds

Fianna Fáil outlined its position to an Oireachtas committee on water charges, and its stance means the group could recommend to the Dáil a system of refunds but possibly also the abolishing of charges if an excessive water levy is also ruled out.

This last point shocked Fine Gael members, with one senior party source saying last night: “If Fianna Fáil maintains its position, there will be a general election in a few months.”

Fianna Fáil’s Barry Cowen told the Irish Examiner his party supported refunds and did “not buy” the idea of an ‘excessive use’ charge.

“We don’t believe there is an excessive use, it’s leakage that is the problem,” he said.

Fianna Fáil says existing legislation can be used to fine households wasting water and general taxation can fund services.

It is also standing by legal advice it received which claims scrapping water bills is in line with EU rules, as Ireland received a derogation or exemption previously.

The party’s position means 10 of 20 members on the committee now formally oppose any future water charges, when the stance of Sinn Féin, AAA, and Independents are included.

Those groups also oppose any more home water meters being installed and instead want district metering, which is used in Scotland.

Those in favour of charging include the six Fine Gael members and one Labour TD. The position of two Independent members and a Green TD remain unknown.

AAA-PBP member Mick Barry said the view of the committee now signalled a “victory” for the Irish people after huge protests.

“What the parliament does, the street can undo,” he said.

Sinn Féin TD Eoin Ó Broin said the development was a “win” for ordinary people.

“I’m pretty confident we have seen the end of water charges once and for all,” he said.

With Fianna Fáil opposing an excessive charge, the Government may be forced into permanently scrapping charges. The ‘confidence and supply’ deal between the parties states they both reserve their “right to adopt differing positions” on water.

It also states the Government will be the ones to pass legislation on recommendations on charges, even if this includes their abolition.

However, Mr Coveney’s insistence that the Government will not breach EU law means that its potentially prepared for the first time to risk collapsing its ‘confidence and supply’ agreement. Without Fianna Fáil’s support in the Dáil, the Government would have no choice but to call a general election.

Mr Coveney denied he would be breaching the agreement if he refuses to pass any legislation on charges, as the deal did not include obliging office holders to break the law. The minister said he wanted all sides to reach a compromise.

The Oireachtas committee resumes deliberations today.