Water refunds... but don’t ask me where money will come from, says Coveney
FOREIGN Affairs minister Simon Coveney has added to the confusion as to how and when the Government plans to refund an estimated €170million in water charges to taxpayers.
Taoiseach Leo Varadkar has made a promise to refund those who paid water charges by Christmas – with some expected to receive €325.
But Mr Coveney, who as former housing minister has been deeply involved in the issue of water charges, where the rebate money will come from.
Speaking on the opening day of the MacGill Summer School in Glenties, Co. Donegal, he was asked where the Government will find the money for refunds given that it has not factored in for the next budget. He said: ‘Well you will have to ask Paschal Donohoe that.’
When asked where the money would come from, however, Mr Coveney said this still has to be worked out.
‘If the Taoiseach has given a commitment, which I believe he has, that the majority of these refunds, will be paid before the end of the year then I think that is good news for people,’ he said.
Mr Coveney added: ‘We need to work out the mechanics of that so we can ensure that happens in the autumn.’
The minister also said that he ‘assumed’ the Taoiseach made that announcement after a conversation with Minister for Finance Mr Donohoe.
‘I assume that is on the back of a conversation with the Minister for Finance and Public Expenditure. My former department will cooperate, and Eoghan Murphy has also indicated the refunds will be in by the end of the year. I think that is positive news that allows us to move on from the water issue which I believe people want to move on from.’
When asked by the Irish Daily Mail if people who paid the charge should expect a refund in their bank account, or if the payment will be made via a tax rebate, a spokesman for the Housing Minister Eoghan Murphy said: ‘We expect this process to commence in the autumn and will be working on the details throughout the summer.’
Irish Water also admitted it was in the dark over how the planned refunds will be rolled out.
A spokesman for the water utility company said: ‘Irish Water has no role in determining policy in relation to refunds of domestic charges.
‘When there is a change in Government policy, Irish Water will implement that change and communicate it to our customers.
‘When a policy direction is issued to Irish Water, we will develop an implementation plan and associated costs which will be forwarded to the CER [Commission for Energy Regulation] for review and approval before the direction is implemented.’
In an interview with the Sunday Independent newspaper yesterday, Taoiseach Mr Varadkar said money has been allocated to pay the refunds, with some homeowners receiving as much as €325.
He also said that payments won’t form part of Budget 2018, and that he was confident the Government will get EU approval for the refunds.
Mr Varadkar said that he believed everyone who paid the water charge will receive money back ‘before the end of the year’.
He added: ‘They’ll get their money back.
‘They’ll be refunded this autumn. We’re gearing up to do that.
‘There’s a cost. There are logistical issues as to how it’s going to be done by Irish Water. And it may also require legislation. But we intend to do it in the autumn.’
Last night, a Fianna Fáil spokesman said Mr Varadkar’s announcement was ‘nothing new’.
He said: ‘The Taoiseach’s comments on this are nothing new and are just reflecting the will of the (Oireachtas Committee on Domestic Water Charges).’
The Labour Party said the refunds were ‘long overdue’.
QUOTED in a newspaper yesterday, Leo Varadkar said people who paid their water charges will ‘be refunded this autumn’.
For the almost one million households involved, this will be very welcome. Yet again, however, there is no clear plan as to how exactly it will work in practice.
As well as admitting that there are ‘logistical issues’ involved, the Taoiseach also seems unsure whether legislation will be needed. None of this inspires much confidence. Worse, these promises are starting to sound a little bit disingenuous.
Though they have every opportunity to do so, neither Mr Varadkar nor any of his colleagues have produced a shred of evidence to show there is a structure in the place to reimburse the €170million. What, for instance, happens in cases where people have moved address since paying?
These are the sort of specific details that people want to know. If the Government is incapable of producing them, then the only conclusion to be drawn is that this isn’t a serious commitment at all.