WATER METERS will be installed in every home in the country over the next two years with a view to introducing domestic water charges from 2011.
Minister for the Environment John Gormley has been given Government approval for the ambitious nationwide scheme and is finalising preparations for its implementation.
The cost of providing meters for the domestic housing stock – the current figure is 1.2 million homes – is expected to cost €600 million and take two years to complete.
The project will be financed by local authorities which are expected to be grouped into regional bodies for the purpose of the scheme with a view to achieving economies of scale. It is expected the public-private procurement process will not be used for this scheme.
Government sources pointed out that one of the attractive aspects of the scheme is its potential to create jobs, particularly in the construction sector which has been decimated by the current recession.
It is estimated that every €1 million invested on the scheme will result in between eight and 12 jobs. The potential is 6,000 jobs over the two years.
The cost of installing the meters in individual homes will vary with location, nature and size of the dwelling. According to the latest estimates, the cost for each home will be €200-€580.
Communities already paying for water supply, such as group water schemes, will not be made subject to the new charges.
Local authorities are likely to start charging for domestic water from 2011, but only where the use of water exceeds a particular allowance. There is provision for charging in the revised programme for government, finalised in October.
It states that households will be allocated a free basic allowance, with charging only for water use in excess of this.
“In keeping with the allocation of greater responsibility to local government, local authorities will set their own rates for water use.”
It is also believed the department will investigate the possibility of “smart meters” being installed for water by means of a pilot study in Dublin. The use of technology could allow local authorities to calculate usage remotely and would also allow householders to control their use of water.
Local authorities may also be in a position to harness technology to allow them to charge different rates for different times, a device that will allow them maintain consistency of supply.
The Labour Party, which abolished the charges in early 1997, is opposed to any reintroduction of the charges. Fine Gael has reserved its position and says it will decide when in government.
A number of smaller parties, including Sinn Féin and the Socialist Party, have campaigned against the imposition of water charges in the past.
Socialist Party MEP Joe Higgins has said that the reintroduction of water charges would be foisting further hardship on working families. His party has promised public protests if they are introduced.
Water charges for domestic homes were abolished in 1997. Commercial rates still apply to businesses, while members of group water schemes also pay.
The Commission on Taxation recommended the reintroduction of charges.
At a conference in October, the chairman of the commission, Frank Daly, said Ireland needed to “get real” about water charges.
Mr Daly, a former chairman of the Revenue Commissioners, said it should be an imperative to have safe and secure water.
At present, he said, there was no incentive for domestic users to manage their water, indicating his preference for the introduction of charges.