Minister for Finance Michael Noonan has declined to rule out a role for the Revenue Commissioners in the collection of water charges.

Mr Noonan did however agree with Fianna Fáil finance spokesman Michael McGrath that “the Revenue have never in the past acted to collect outstanding debts. They are responsible for raising revenue.”

During questions in the Dáil, Mr McGrath highlighted suggestions that the Revenue would become involved in the collection of water charges, which had not been ruled out by Government.

He said Mr Noonan was the Minister with overall responsibility for the Revenue and asked him “will you clarify for once and for all whether or not the Revenue will in any way be involved in the collection of water charges”.

The Minister said the whole issue of Irish Water and the policy underpinning it is being revisited by the Government with an announcement within the next two weeks.

He said three principles were involved including giving certainty to people about what bills they would face; that whatever charge was applied would be “affordable by the generality of households”; and that the system would be kept off balance sheet.

Mr McGrath told the Minister”I think you need to clarify the position on this matter today. It seems to me the way Irish Water has been set up as a commercial state company it is not open to the Revenue Commissioners to act as a commercial debt collection agent for a commercial state company.”

Mr Noonan told him: “All options are being looked at but as you’ve said yourself the Revenue have never acted in the past to collect outstanding debts. They’re responsible for raising revenue.”

Sinn Féin finance spokesman Pearse Doherty said: "I think it's telling that the Minister refused to rule out the role of Revenue in relation to water charges."