Coalition in renewed push on budget measures

The Government is preparing to mount a renewed publicity push on its budget measures amid concerns the main elements of the October package were lost in the controversies over Irish Water.

With the Coalition unveiling its revised water charges plan earlier this week, senior figures say Ministers will use the run-up to Christmas to highlight tax and spending changes made in the budget.

Sources in Labour and Fine Gael say the main elements of the budget were not picked up by voters because of the speed with which water charges again became the dominant issue. "We had the budget on a Tuesday and by the Thursday morning water was back on the front pages because of the parliamentary party meetings," said one senior figure in reference to concerns raised by Government TDs and Senators about Irish Water.

The main elements of the budget were tax cuts and some welfare increases, such as the partial restoration of the Christmas bonus and an increase in child benefit, and these are likely to be re-emphasised by Ministers in the coming weeks.

Sources said research carried out by Fine Gael and Labour in preparation for the revised water charges package showed many people did not realise what was in the budget or the effect it would have on them.

New package

Taoiseach Enda Kenny has already said that everyone will be better off next year as a result of the changes to water charges and budgetary measures, but those in Government circles say it will not become apparent until at least the spring whether people have accepted the new water package.

The Parliamentary Labour Party discussed water charges yesterday, but “not as the sole key item as it has been for the last few weeks”, according to one source, who claimed TDs and Senators were happy with the new package.

Meanwhile, Tánaiste Joan Burton has given a statement to An Garda Síochána about the water charges protest in Jobstown last weekend.

A spokesman for Ms Burton said she gave the statement at the request of An Garda Síochána, who also met some of the Tánaiste's staff. The meeting in Ms Burton's Leinster House office lasted about an hour.

In response to a parliamentary question from Fianna Fáil's Michael McGrath, Minister for Finance Michael Noonan yesterday said the €100 water conservation payment to be given to all households will cost an estimated €130 million next year, which means the net income from domestic water charges will be less than €150 million.

‘Additional cost’

Mr Noonan said the €130 million “represents an additional €64 million cost over and above what was provided for in Budget 2015 and will increase the deficit”. “There is also an additional cost to the public finances of €21 million to offset the loss in revenue from the changed tariff and allow for funding to be provided to Local Authorities to compensate them for the reduced revenue arising from the proposed rates exemption.”

Ms Burton told the Dáil yesterday she is satisfied Irish Water will pass the Eurostat market corporation test as an independent company capable of borrowing.

“The test is whether or not there is a stream of income in excess of 50 per cent of the total funding which comes from funding other than the Government,” she said. “The Government’s subvention, in terms of Irish Water, is 44 per cent, so we more than comfortably pass the test.”