Fianna Fáil has proposed that the water system be paid for through general taxation and that the principle of charging for usage should be abolished for good. The party made the proposals in a statement to the commission on how water services should be funded.

It marks a move away from its previous position that charges should only be suspended, as it argued in its negotiations with Fine Gael earlier this year to facilitate a minority government led by Enda Kenny.

Fianna Fáil, which accepted the principle of water charges as part of the troika’s bailout package, had also previously argued that domestic charges should only be suspended until such time as the national water infrastructure could be brought up to standard.

Its submission to the Expert Commission on Domestic Public Water Services – established as part of the Fianna Fáil and Fine Gael deal – says the entire system should be funded through general taxation by way of direct subvention from the exchequer.

Its election position was that a subvention would be provided during a period of water charge suspension, but sources said the “submission calls for abolition”.

Subvention level

The level of the subvention would be set by the

Commission for Energy Regulation

, which previously set the level of water charges paid by households, and increases could be requested by

Irish Water

.

The confidence and supply agreement between Fine Gael and Fianna Fáil only commits to the suspension of charges for a period of nine months, as well as the establishment of a commission on the future of water charges.

Fine Gael refused to concede the suspension of charges for the entire Dáil term, as had been requested by Fianna Fáil. Fine Gael sold the agreement to its TDs and supporters on the basis that charges would only be suspended.

Fianna Fáil has said the numbers in the current Dáil do not allow for the reintroduction of charges in advance of another election.

The commission is examining how to fund the water system in the long term. Its recommendations will then be considered by an Oireachtas committee, and a Dáil vote on the issue will follow.

Election position

Speaking to

The Irish Times

in July, Micheál Martin repeated his election position on abolishing water charges was for the “the lifetime of the next government”, having previously said the policy move could be reviewed after five years.

He refused to be drawn on whether Fianna Fáil agreed with some kind of charge, saying he was “loath to say we would support one or the other”.

“What we are clear about is the present regime has to go. It lost confidence and it lost credibility and we had to go back to the drawing board. It was not raising any significant revenue. It lost a huge amount of political capital.”

He also said that it could be argued “the user pays through taxation”, a move confirmed in the party views submitted to the commission on water services.

The European Commission has warned that Ireland could face fines because of the decision to suspend water charges, and maintains that charges cannot be abolished without breaking the water framework directive, which Ireland has already signed.

Fianna Fáil says it has legal advice to the contrary. It has declined to publish the legal advice but included it in its submission to the water charges commission.

It is understood it argues that established practice in Ireland in 2003, when the water charges directive was transposed into Irish law, was that services were funded through general taxation.