‘Combine water and property taxes’

WATER charges should be combined with the property tax and used to pay for local services, a leading economist has recommended.

Dr Stephen Kinsella from the University of Limerick believes that Revenue could be used to collect what would amount to a new local services charge that could pay for parks, roads and schools – as well as water services.

‘A simple solution is to localise the Local Property Tax and expand it so that water charges become part of it,’ Dr Kinsella said.

‘You could also resource schools, parks, roads – as well as water – and by bringing it to a local level you would be giving people a say in how it all actually works.

‘We already have a payments system [Revenue], so it’s simple that way. Revenue will continue to collect the tax because they’re good and they’re everywhere.’

Dr Kinsella said he would not abandon the metering programme as this could still deliver very valuable data to the State on water usage. ‘I’d still use the meters for detection purposes, but to be honest it’s the local authorities that are the worst offenders when it comes to water wastage, they’re not conscientious. You shouldn’t be attacking 74-year-old Mrs Murphy for using too much water washing the dishes,’ he added.

‘Also, all the wages will still be there in Irish Water too, nobody will get fired, they’ve got contracts, everybody will still get their bonuses,’ Mr Kinsella said.

But Green Party leader Eamon Ryan said he is not in favour of Dr Kinsella’s proposed new model because he believes it would not promote water conservation in the home. ‘I’d be slightly concerned as it goes away from conservation if it is based on something else apart from usage like the size of a house or something,’ Mr Ryan said.

‘It would still have to be a metered system I think.

Chambers Ireland – which represents many businesses who have for years paid water charges to local authorities through rates – is in favour of bringing water charges back at a local level, but believes it should still be kept separate from the LPT.

Director of policy and communications, Mark O’Mahoney, said: ‘A consumption charge will help support water conservation and allow the long term investment in our water infrastructure which we so badly need.