The Government believes that Fianna Fáil’s economic credibility could be at stake when a motion on the abolition water charges is considered in the Dáil today.

A Sinn Féin proposal to permanently scrap the levies, which were suspended for a period of nine months as part of Fianna Fáil's deal with Fine Gael to support a minority Government on certain matters, is to come before the House.

Fianna Fáil has agreed to vote against the motion despite being in favour of eliminating the charges.

At the time of the general election, Fianna Fáil’s position was to suspend the charges until the water system was fit for purpose.

However, leader Micheál Martin indicated last week that he was in favour of the permanent abolition of the levies.

A Government source criticised Fianna Fáil’s decision to “drop” the levies and insisted it was time for the party to be realistic. The party’s stance on charges needed to be tested with the same vigour as the Government’s, the source added.

Fianna Fáil’s decision to offer a refund to the thousands of people who have paid their charges through a tax credit, estimated to cost €50 million, must also be questioned, the source added.

The party's housing spokesman, Barry Cowen, denied it had been inconsistent on the issue. "The water system is not fit for purpose. I believe in making it fit for purpose," he said. "When it is fit for purpose, you can consider asking people to make a contribution. But that could be in 10 years' time."

Mr Cowen said Fianna Fáil would take no criticism on its economic credibility from Fine Gael.

Rebuffed model

“That is rich coming from a party whose model [for water charges] was rebuffed by

Eurostat

, ” he said. “Fianna Fáil has put forward its suggestions to the expert commission examining this issue. The tax credit is one of a number of ideas that should be looked at.

“This is entirely consistent with the confidence and supply agreement,” he said. “It has always been the party’s position that those who have paid their charges will be treated no less favourably than those who have not. That has always been our position.”

At a meeting of the parliamentary party yesterday, Mr Cowen confirmed a counter- motion to the Sinn Féin motion had been agreed with the Government.

He told the meeting that the party’s general election manifesto had committed to “scrap water charges” and the position had not changed.