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Irish Water - Tax or Charge for service?

  • 19-08-2015 3:54pm
    #1
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,550 Mod ✭✭✭✭johnnyskeleton


    Ok folks, I understand that a lot of people want to talk about Irish Water but are afraid of opening pandoras box. So as an experiment I'm opening this thread and we will see how we get on.

    This thread is only about the general issues as to whether citizens have a right to water paid for through general taxes, whether it is a service that is to be paid for like electricity or a phone bill, a pay per use amount is fair or whether there should be a means test, whether some people should be exempt, whether some people should pay more, meters vs. fixed charges, the morality of enforcing the payment by garnishing wages or making it a criminal offence etc.

    It is not a thread for issues such as whether Irish Water is a corrupt organisation, the protests (good bad or indifferent), glee or disdain about the amount of people that have signed up, discussions as to how many people have actually signed up or paid, whether it is to be kept off books or should be part of the national debt, whether it will be privatised etc etc. All these things are off topic for this thread, although if this thread goes well we might chance some other debates on discrete issues.

    TLDR - this is not IW Megamerge and it is not the cafe.

    In the spirit of giving my own opinion on the net issue of it being a tax or a charge, I'm inclined to the following views:
    • It is a charge for a service, you can opt out if you wish;
    • We had been paying for it through other taxation, but the plan is to make it paid directly, so it is not double taxation it is just changing the method of taxation;
    • Electricity, phones, gass, television, groceries, rent etc i.e. all other necessities are pay per use. If you are of a limited income you can make savings by reducing your consumption or even opt out.
    • It is up to social welfare etc to ensure that people can have a roof over their heads or running water as is required and set their rates accordingly. It is for social welfare to increase payments if necessary, the fact that it is a cost for people on welfare is not a reason not to pay;
    • To be honest, I wish a lot more government services were like this. Imagine if PRSI was an opt in/opt out system. Since I pay into it but get nothing out that is an effective tax and if I could get a private social insurance policy instead I would. Likewise with healthcare if you could choose the level of care vs the price you pay in tax etc
    So folks, feel free to discuss the above issues and we will see about dealing with the other things in different threads.



    Anyone who tries to derail the thread will be dealt with severely


«134

Comments

  • Registered Users, Registered Users 2 Posts: 5,336 ✭✭✭Mr.Micro


    It is a charge and there needs to be one. Up to now County Councils have had the responsibility to provide water, with hit and miss results. The whole system needs standardisation, massive investment and infrastructure for now and future generations, hence money is needed. The population of Ireland will increase dramatically, IMO over the coming years and the water system needs to be able to cope. Does anyone seriously think the County Councils are up for this, they can hardly grit the roads in winter or fill potholes. The structure of Irish water management is a whole other issue, jobs for the boys, which is abhorrent.


  • Registered Users, Registered Users 2 Posts: 4,236 ✭✭✭Dannyboy83


    [*]It is a charge for a service, you can opt out if you wish;

    I and most of my colleagues seem to support the fundamental idea and regardless of how we feel about the implementation - we have paid it... while I'm under the impression that most other people I know generally have 'opted out'.

    My questions are:
    1) What is the threshold below which opt outs cannot fall, if the service is to avoid implosion?
    2) How far are we from that threshold?
    3) If we cross that threshold, is there an alternative course of action?
    e.g.
    A) Government subsidises IW
    B) Government makes subscription mandatory like Pension or UHI
    C) Government makes subscription mandatory by deduction at source


  • Moderators, Politics Moderators, Social & Fun Moderators Posts: 16,486 Mod ✭✭✭✭Quin_Dub


    It's a charge and it should be.

    As much of government expenditure as possible should be shifted to consumption based charges as it should ensure a more stable and measurable income stream. Healthcare is definitely one. Arguably, Social Welfare could move to that model as well with compulsory "unemployment insurance" instead of flat rate payments funded from central taxation.




  • I'll edit/quote in another post I've written elsewhere about the benefits of the chosen model for Irish Water.
    Objectively it is quite clear that there are large efficiencies to be had under the proposal.

    Metered charging provides;
    • An incentive to reduce usage / wastage for the end user.
    • An incentive to fix leaks for the end user.
    • A viable method to identify locations of leaks which have thus far gone undetected for years.
    A centralised system provides;
    • Reduction in staffing costs* through removal of duplication of positions
    • Reduction in payment systems' costs through removal of duplicative systems
    • Reduction in monitoring systems' costs through removal of duplicative systems
    • Reduction in legal costs through ..
    • etc.

    And finally, moving this out of the Government's hands directly **
    Reduces the Government direct liability and costs which means that the funding that is sorely needed to upgrade and update our water infrastructure is moved away from the Government Balance sheet, which given the targets that we've signed up for (and are still not yet meeting) is a very useful way of reducing our need for more austere measures.

    Have we absolutely zero time for these important ancillary aspects of the proposal? Each of these benefits reduces the Total Government / Average Irish Person's cost of water provision. What proposal do you have to reduce the costs by anything near a comparable amount?

    *Though I'll readily admit that in IW's case this aspect was bastardised & delayed by signing up the LA staff for 5 years in a populist nonsensical manner.
    ** Again, another fail here due to EuroStat ruling (failed for tinkering and pandering)

    My position on IW is extraordinarily simple. The model (as originally envisioned) has objective benefits over the previously existing model for water provision (LAs). The costs that those benefits have are (imo) very small. And so in a simple cost-benefit analysis, this model is an improvement on the last version.

    Any other model proposal, which can demonstrably show a 'positive' in a cost/benefit analysis vs Irish Water would earn my preference. However there's not been any other models proposed that get near to that.

    We are moving from a "shared charge" (through General Taxation) to a "personal charge" (through metered charging). Which gives people responsibility over their usage, conservation, habits and ultimately, final charge.


  • Registered Users, Registered Users 2 Posts: 3,628 ✭✭✭Blackjack


    I'll edit/quote in another post I've written elsewhere about the benefits of the chosen model for Irish Water.


    My position on IW is extraordinarily simple. The model (as originally envisioned) has objective benefits over the previously existing model for water provision (LAs). The costs that those benefits have are (imo) very small. And so in a simple cost-benefit analysis, this model is an improvement on the last version.

    Any other model proposal, which can demonstrably show a 'positive' in a cost/benefit analysis vs Irish Water would earn my preference. However there's not been any other models proposed that get near to that.

    We are moving from a "shared charge" to a "personal charge". Which gives people ownership over their final bill.

    This.
    From my own perspective - if treated water is being supplied to and waste water being removed from your house, it should be paid for like any other utility.
    If you are managing this yourself by your own well and sewage tank (which comes at a cost to yourself) then no reason to have to pay anything over and above the cost of maintenance of pumps, filters etc and the registration, emptying and safe disposal of the contents of your sewage tank.


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  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.




  • Permabear wrote: »
    This post had been deleted.

    Which dovetails beautifully with the income tax cuts, the USC cuts, and the social welfare increases that also came into effect at the same time as we moved from a shared charge to a personal charge

    http://www.irishtimes.com/news/politics/budget-2015-top-income-tax-rate-cut-usc-rates-changed-1.1962809


  • Moderators, Politics Moderators, Social & Fun Moderators Posts: 16,486 Mod ✭✭✭✭Quin_Dub


    Permabear wrote: »
    This post had been deleted.

    Indeed...

    Unfortunately it's another example of an Irish Government implementing the right thing at the wrong time and doing it poorly.


  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.




  • Permabear wrote: »
    This post had been deleted.

    True. However, that's a public perception issue.

    The facts are that as we did move from a shared charge to a personal charge, the amounts levied on incomes by the government did fall and the amounts given to social welfare recipients did rise.

    Undoubtedly the PR could have been handled better to paint these changes as 'not unrelated' in the public eyes. Some populism to balance the pragmatism perhaps.


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  • Dannyboy83 wrote: »
    I and most of my colleagues seem to support the fundamental idea and regardless of how we feel about the implementation - we have paid it... while I'm under the impression that most other people I know generally have 'opted out'.

    My questions are:
    1) What is the threshold below which opt outs cannot fall, if the service is to avoid implosion?
    2) How far are we from that threshold?
    3) If we cross that threshold, is there an alternative course of action?
    e.g.
    A) Government subsidises IW
    B) Government makes subscription mandatory like Pension or UHI
    C) Government makes subscription mandatory by deduction at source

    These are exceptionally difficult questions to answer without explicit details and knowledge of the entire Water System network, and all costs associated with the maintenance, provision and infrastructure of the network.

    I think the argument made against '1)' in the absence of real data would be that it's incredibly unlikely that a number significant enough to hurt the viability of the centralised provision service would opt-out. To opt-out you would require an alternative system. This is already available for those with wells & septic tanks, as well as those on Group Schemes, but I'd be surprised if even 10% of households currently connected to the water system would benefit (economically) from opting out and procuring their own system. ESB's viability is not under threat from personal generators etc.

    '2)' cannot be answered without data;

    '3)' Prices would change for those remaining within the system. (up). At some stage this would become unsustainable and alternative (private - non-all encompassing) solutions would have to emerge.


  • Closed Accounts Posts: 21,727 ✭✭✭✭Godge


    I'll edit/quote in another post I've written elsewhere about the benefits of the chosen model for Irish Water.


    My position on IW is extraordinarily simple. The model (as originally envisioned) has objective benefits over the previously existing model for water provision (LAs). The costs that those benefits have are (imo) very small. And so in a simple cost-benefit analysis, this model is an improvement on the last version.

    Any other model proposal, which can demonstrably show a 'positive' in a cost/benefit analysis vs Irish Water would earn my preference. However there's not been any other models proposed that get near to that.

    We are moving from a "shared charge" (through General Taxation) to a "personal charge" (through metered charging). Which gives people responsibility over their usage, conservation, habits and ultimately, final charge.


    I agree completely with this.

    I have yet to see any coherent argument which sets out how any system other than a variant of metered charges is a better option than metered charges in terms of security of supply, future investment requirements, economies of scale and conservation.

    It would be interesting to see how those who oppose water charges explain how an efficient system would work in the absence of such charges.


  • Registered Users, Registered Users 2 Posts: 26,458 ✭✭✭✭gandalf


    Again on principle I have no issue with a consumption based charge once there is reciprocal reductions in the other routes of funding that are being used. It appears that may be happening although as Permabear states I fear that is because the government are trying to buy the next election.

    However as it is constituted IW is not encouraging conservation. The noises coming from Government today of extension of the cap for ten years effectively means that the meters that IW have controversially dug up the front of nearly every home in the state for will never see actual use for billing and conservation. Their lifespan is ten years so they will have to be replaced without a bill even being issued from their readings.

    The company itself is not cost effective, with senior management who have proven they cannot deliver major infrastructural projects already and vast over staffing. We are certainly not going to get value for money as it is currently constructed. It certainly is an absolute fiasco considering FG's promises to end cronyism, reduce quangos and deliver value for money before the last election.


  • Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    gandalf wrote: »
    Again on principle I have no issue with a consumption based charge once there is reciprocal reductions in the other routes of funding that are being used. It appears that may be happening although as Permabear states I fear that is because the government are trying to buy the next election.

    I don't see how reciprocal reductions are possible, as we have other sources for funding water at present:
    1. A nebulous portion of general taxation - ok, but we don't have a balanced budget so therefore decreasing spending does not mean there will be an analogous decrease in requirement for tax intake
    2. A nebulous portion of LPT - this money is also required at the rate at which we are paying; unfortunately, it is being diverted to cover a shortfall in water in an attempt to even out the "main" balance sheet;
    3. 5% of Motor Tax - even at its highest estimate, this contributes a few hundred thousand to water and it could also be easily redistributed into road infrastructure where it is needed.

    So, there we have reasons why tax couldn't be reduced in a corresponding manner.

    The nail in the coffin is that under any Irish system, there will have to be significant tax money spent on allowances and grants.

    Therefore the whole concept of reciprocal reductions in tax is invalid ab initio.
    gandalf wrote: »
    However as it is constituted IW is not encouraging conservation. The noises coming from Government today of extension of the cap for ten years effectively means that the meters that IW have controversially dug up the front of nearly every home in the state for will never see actual use for billing and conservation. Their lifespan is ten years so they will have to be replaced without a bill even being issued from their readings.
    Agreed.
    gandalf wrote: »
    The company itself is not cost effective, with senior management who have proven they cannot deliver major infrastructural projects already and vast over staffing. We are certainly not going to get value for money as it is currently constructed. It certainly is an absolute fiasco considering FG's promises to end cronyism, reduce quangos and deliver value for money before the last election.
    This is an argument I've been trying to make for some time now. Privatisation of the company with State ownership of the infrastructure and commodity would significantly deal with this issue. The rest could be dealt with by giving the CER actual teeth and powers outside of the government. Unfortunately in this country, we seem to be intent on giving the government as much control as possible, letting them tell us what's best for all of us and then inexplicably complaining about the government being corrupt and too powerful - when we gave them all this power to avoid (boo*hiss) privatisation!


  • Registered Users, Registered Users 2 Posts: 4,236 ✭✭✭Dannyboy83


    These are exceptionally difficult questions to answer without explicit details and knowledge of the entire Water System network, and all costs associated with the maintenance, provision and infrastructure of the network.

    I think the argument made against '1)' in the absence of real data would be that it's incredibly unlikely that a number significant enough to hurt the viability of the centralised provision service would opt-out. To opt-out you would require an alternative system. This is already available for those with wells & septic tanks, as well as those on Group Schemes, but I'd be surprised if even 10% of households currently connected to the water system would benefit (economically) from opting out and procuring their own system. ESB's viability is not under threat from personal generators etc.

    '2)' cannot be answered without data;

    '3)' Prices would change for those remaining within the system. (up). At some stage this would become unsustainable and alternative (private - non-all encompassing) solutions would have to emerge.

    Thanks for the answer.
    it's incredibly unlikely that a number significant enough to hurt the viability of the centralised provision service would opt-out

    This may be down to misinterpretation on my part, but the impression I am currently under, is that this has already occurred i.e. more than half have already opted out:
    http://www.independent.ie/opinion/comment/it-really-is-time-to-put-irish-water-out-of-our-misery-31464273.html
    Here's what we do know, though.
    Irish Water began billing in January and collected €30.5m instead of €66.8m for that three-month period. So something has gone radically wrong.

    Only 46pc of water bills for the first three months of the year have been paid

    Environment Minister Alan Kelly has given Irish Water permission to borrow a further €550m from commercial banks




  • Dannyboy83 wrote: »
    Thanks for the answer.


    This may be down to misinterpretation on my part, but the impression I am currently under, is that this has already occurred i.e. more than half have already opted out:

    Those people are currently consuming Irish Water's services without paying for it. They will eventually though.

    They are not opting out. Opting out would be to remove yourself from the Irish Water network, no longer having access to IW services, and instead move to self-provision. This would necessarily entail both fresh water delivery and waste water removal. (Also possible to have 'some' IW Services - not all, which means a smaller bill afaik)


  • Moderators, Politics Moderators, Social & Fun Moderators Posts: 16,486 Mod ✭✭✭✭Quin_Dub


    Those people are currently consuming Irish Water's services without paying for it. They will eventually though.

    They are not opting out. Opting out would be to remove yourself from the Irish Water network, no longer having access to IW services, and instead move to self-provision. This would necessarily entail both fresh water delivery and waste water removal.

    True - Cash-flow vs. Liquidity to a certain extent..

    Arguably IW has a cash-flow problem right now as people aren't paying their bills , but ultimately they will either have to pay or leave (presumably they'd still be liable for arrears , just as with any other utility)..

    It's the leaving that is the risk to long term sustainability , not the current non-payment.
    (Also possible to have 'some' IW Services - not all, which means a smaller bill afaik)

    Indeed - I am only liable for a "half" bill as I have my own Waste water system, but get mains water from IW.


  • Registered Users, Registered Users 2 Posts: 997 ✭✭✭Colm R


    Quin_Dub wrote: »

    It's the leaving that is the risk to long term sustainability , not the current non-payment.

    Is leaving the network really a risk to the sustainability of the system. For example, I have a well, and nearest well to me is about 200 meters away. Within 1 square km of my home, there is probably 5 wells.

    In an urban setting, could you seriously drill so many wells in such close confines to other wells?

    Also, the trucks to do wells are huge.

    I guess, you could see some level of community effort to set up their own system on say a street by street basis, or house estate basis. But would this be cheaper for the end user than Irish Water?

    It depends. My water and waste cost me about 750 a year. But if I allowed a neighbour to connect to my water and waste, I'd doubt the cost would double.


  • Moderators, Politics Moderators, Social & Fun Moderators Posts: 16,486 Mod ✭✭✭✭Quin_Dub


    Colm R wrote: »
    Is leaving the network really a risk to the sustainability of the system. For example, I have a well, and nearest well to me is about 200 meters away. Within 1 square km of my home, there is probably 5 wells.

    In an urban setting, could you seriously drill so many wells in such close confines to other wells?

    Also, the trucks to do wells are huge.

    I guess, you could see some level of community effort to set up their own system on say a street by street basis, or house estate basis. But would this be cheaper for the end user than Irish Water?

    It depends. My water and waste cost me about 750 a year. But if I allowed a neighbour to connect to my water and waste, I'd doubt the cost would double.

    No.. In reality it's not really a risk at the macro level..You are correct, the overwhelming majority of urban households would have no means provision of an alternative supply.

    I guess that's the point. The current non-payment despite what the protesters might say is not really a challenge to the sustainability of IW. People will eventually have to pay, until then it is just a cash-flow issue.


  • Closed Accounts Posts: 21,727 ✭✭✭✭Godge


    http://www.independent.ie/opinion/comment/its-hard-to-swallow-but-irish-waters-here-to-stay-31469645.html

    This article by Eddie Molloy addresses many of the issues raised in a discussion about how we should charge for water.

    "Water is indeed a human right, but it has to be paid for just like education or food. The idea that water can be paid for out of "general taxation" is a blatant political deceit that ultimately will impact most on poor people. By driving the debts of Irish Water back on to the Government's balance sheet, the effect will be two-fold. Firstly, investment in water will have to compete with restoration of vital social services decimated over the past decade. Every day we hear of nursing homes unfit for purpose, long waiting lists for children needing psychiatric care, families made homeless - and so on. Not one of those who rails against Irish Water has come anywhere near calculating the full costs of meeting all of these pressing needs, while blithely conceding that the utility's requirement for hundreds of millions over the next decade should compete with these priorities.
    Secondly, the impressive programme that Irish Water engineers have mapped out to provide clean water, to stop fouling our lakes rivers and beaches, and to replace lead pipes, will slow down because the quantum of funds needed to carry out these planned works will not be forthcoming from the Government's coffers."

    That extract above makes a very strong case for a charges-based system.


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  • Registered Users, Registered Users 2 Posts: 24,559 ✭✭✭✭lawred2


    True. However, that's a public perception issue.

    The facts are that as we did move from a shared charge to a personal charge, the amounts levied on incomes by the government did fall and the amounts given to social welfare recipients did rise.

    Undoubtedly the PR could have been handled better to paint these changes as 'not unrelated' in the public eyes. Some populism to balance the pragmatism perhaps.

    it's not really a perception issue

    the bold claim was 'we need to put more money back in people's pockets'

    not; we're reducing your tax bill so you can pay your water charges


  • Closed Accounts Posts: 8,722 ✭✭✭nice_guy80


    Godge wrote: »
    http://www.independent.ie/opinion/comment/its-hard-to-swallow-but-irish-waters-here-to-stay-31469645.html

    This article by Eddie Molloy addresses many of the issues raised in a discussion about how we should charge for water.

    "Water is indeed a human right, but it has to be paid for just like education or food. The idea that water can be paid for out of "general taxation" is a blatant political deceit that ultimately will impact most on poor people. By driving the debts of Irish Water back on to the Government's balance sheet, the effect will be two-fold. Firstly, investment in water will have to compete with restoration of vital social services decimated over the past decade. Every day we hear of nursing homes unfit for purpose, long waiting lists for children needing psychiatric care, families made homeless - and so on. Not one of those who rails against Irish Water has come anywhere near calculating the full costs of meeting all of these pressing needs, while blithely conceding that the utility's requirement for hundreds of millions over the next decade should compete with these priorities.
    Secondly, the impressive programme that Irish Water engineers have mapped out to provide clean water, to stop fouling our lakes rivers and beaches, and to replace lead pipes, will slow down because the quantum of funds needed to carry out these planned works will not be forthcoming from the Government's coffers."

    That extract above makes a very strong case for a charges-based system.

    The main problem is the way it was set up. Why wasn't it split up into two separate companies, like ESB?

    For some reason there is a holding company behind IW, where executive staff are being paid ridiculous amounts of money to do, what exactly? And then add in the executive staff and other management staff in IW

    There should have been an assets company to invest in the water network. metering etc and then a separate services company to run the billing and other aspects.


  • Registered Users, Registered Users 2 Posts: 12,248 ✭✭✭✭BoJack Horseman


    Isn't that parent company just Bord Gais?

    And yes, I would have liked the opportunity for a deregulated 'customer supply' wing & an infrastructure company.

    It would have been fruitful for the consumer to have all the utilities, IW/ ESB/ Airtricity/ Energia etc all undercutting to bundle all utilities together.

    But I imagine, optically that would have looked too much like comodification.... which was the case anyway.


  • Moderators, Science, Health & Environment Moderators Posts: 20,151 Mod ✭✭✭✭Sam Russell


    Why do Irish water charge different amounts to commercial customers than to domestic customers? [€2 for commercial and €3.7 for domestic - in Dublin CC]

    Why do they charge the same for waste water as for fresh water? Is there any basis for an equal charge, except the simplicity of it? Rain water arrives free of the meter and goes out with the waste and watering the garden comes in via the meter but does not go out with the waste.

    Has any study been done on the cost of operating a waste system compared with the water supply system? Is it really an equivalent cost?

    Could they not allow customers a choice of charging regimes? For example - a fixed charge per billing period, or a metered charge with no standing charge, or a standing charge but a lower cost per unit.

    Why give 'free allowances'? - they make no sense. I do not get free electricity to heat the babies bottle so why should I demand free water to shower teenagers? It makes no sense.

    IW would do better to give a guarantee they will always fix leaks upto the front door where they will fit a stopcock, accessible to the householder. To do otherwise is bad publicity as a second leak could be caused by bad workmanship of the first leak.


  • Closed Accounts Posts: 7,964 ✭✭✭For Reals


    We had a water supply, (with some boil notice etc. exceptions) funded from general taxation.
    As noted, now we are faced with individual charges also.

    It was a part of general taxation and we are still taxed towards it, with a specific charge added.
    It opens the door (further) to taking everything funded from general taxation, compartmentalising it and creating a charge for it, but keeping general taxation at similar rates. It's not acceptable and it's simply not fair.

    Not 'it', there is both a charge and a tax, (not to mention road tax).


  • Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    For Reals wrote: »
    We had a water supply, (with some boil notice etc. exceptions) funded from general taxation.
    As noted, now we are faced with individual charges also.

    It was a part of general taxation and we are still taxed towards it, with a specific charge added.
    It opens the door (further) to taking everything funded from general taxation, compartmentalising it and creating a charge for it, but keeping general taxation at similar rates. It's not acceptable and it's simply not fair.

    Not 'it', there is both a charge and a tax, (not to mention road tax).
    Again, this argument completely ignores the facts and figures when you look at general taxation. Regardless of water supply, in order to reduce general taxation we would need to make cuts somewhere. If you want general taxation to pay for water without charges, we need to make cuts or increase taxes.

    Can you explain how it would be possible to fund water given our current taxation figures as you see it, or is this a cafe sound-byte post?


  • Registered Users, Registered Users 2 Posts: 12,248 ✭✭✭✭BoJack Horseman


    Can you explain how it would be possible to fund water given our current taxation figures as you see it, or is this a cafe sound-byte post?

    The far-left do set out the alternatives.
    They are false, but they, for tokenism's sake try.

    Howevwr, there is an argument that the status quo is fine, for most people.

    Politics is about numbers, while things are OK for most, many see no reason in increasing expenditure.


  • Closed Accounts Posts: 8,722 ✭✭✭nice_guy80



    Can you explain how it would be possible to fund water given our current taxation figures as you see it, or is this a cafe sound-byte post?

    Well, the government have already stolen a load of motor tax money to fund the Irish Water bill

    so cuts have been made to roads maintenance budget of every county council
    and I have noticed a deterioration in the quality of roads, especially the regional roads


  • Registered Users, Registered Users 2 Posts: 12,248 ✭✭✭✭BoJack Horseman


    nice_guy80 wrote: »
    Well, the government have already stolen a load of motor tax money to fund the Irish Water bill
    Much of motor tax already & always was spent on LA water/sewage services.....
    That hasn't changed & won't change while IW isn't self funding.
    so cuts have been made to roads maintenance budget of every county council
    There isn't & never was a direct link between motor tax & road funding.

    The government allocate roughly €450m annually (too little), whereas motor tax returns double that to the exchequer.

    The reduction in capital funding has been across the board & was far far more to do with plugging the €12bn annual deficit than the €180m startup monies for IW.


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  • Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    nice_guy80 wrote: »
    Well, the government have already stolen a load of motor tax money to fund the Irish Water bill

    Are you alleging they have taken over 5% as legislated? If so, proof of same? If not, how much is 5% of Motor Tax receipts per annum?


  • Closed Accounts Posts: 4,024 ✭✭✭Owryan


    My opinion? It's a service charge for a service provided to most homes. Happy to pay so long as the money goes to IW. However if post next election IW is wond up and the charge becomes just another tax then that's a different story.

    As far as I'm concerned the provision of clean drinking water and a waste service is necessary evil to be paid for.

    For those who say water is a human right then let them harvest rain water or haul buckets from a river if they don't want to pay. Nothing to stop them.

    Some argue that access to the internet is a human right does that mean it should be free ?


  • Closed Accounts Posts: 7,964 ✭✭✭For Reals


    Again, this argument completely ignores the facts and figures when you look at general taxation. Regardless of water supply, in order to reduce general taxation we would need to make cuts somewhere. If you want general taxation to pay for water without charges, we need to make cuts or increase taxes.

    Can you explain how it would be possible to fund water given our current taxation figures as you see it, or is this a cafe sound-byte post?

    I've covered this at length as well you know.
    I'm stating facts, not making an argument that needs defending. You go on to ask me for an alternative, (accepting that costs will eternally go up, which is a flaw in the current bias and broken system we are enslaved to) which I've given a number of times, raise taxes. A cheaper alternative to IW.
    If we cannot fund water, if our government cannot supply a basic requirement for life that literally falls from the sky, we should be looking at how the state manages our finances not thinking up new ways to tackle ever increasing costs.
    If metering is deemed the only way to go, let the local authorities oversee it.
    I'm not interested in rehashing the LA debate as they can't be compared to IW as the LA's never were given the resources or remit to overhaul the system.

    Back on topic, The water costs are both tax(es) and a charge. That's purely factual.


  • Closed Accounts Posts: 21,727 ✭✭✭✭Godge


    For Reals wrote: »
    I've covered this at length as well you know.
    I'm stating facts, not making an argument that needs defending. You go on to ask me for an alternative, (accepting that costs will eternally go up, which is a flaw in the current bias and broken system we are enslaved to) which I've given a number of times, raise taxes. A cheaper alternative to IW.
    If we cannot fund water, if our government cannot supply a basic requirement for life that literally falls from the sky, we should be looking at how the state manages our finances not thinking up new ways to tackle ever increasing costs.
    If metering is deemed the only way to go, let the local authorities oversee it.
    I'm not interested in rehashing the LA debate as they can't be compared to IW as the LA's never were given the resources or remit to overhaul the system.

    Back on topic, The water costs are both tax(es) and a charge. That's purely factual.

    How is raising taxes a cheaper alternative to IW?

    Explain with links to published figures, please.


  • Registered Users, Registered Users 2 Posts: 3,872 ✭✭✭View


    For Reals wrote: »
    If we cannot fund water, if our government cannot supply a basic requirement for life that literally falls from the sky, we should be looking at how the state manages our finances not thinking up new ways to tackle ever increasing costs.

    In the decades that we had water supplied out of general taxation, there is no evidence of the electorate ever having the slightest interest in the amount of monies being spent on our water supply system. Certainly it has never featured as an electoral issue and the electorate have never voted based on how good or bad the water supplied was. Hence your argument just doesn't stand up to reality.


  • Registered Users, Registered Users 2 Posts: 3,872 ✭✭✭View


    nice_guy80 wrote: »
    Well, the government have already stolen a load of motor tax money to fund the Irish Water bill

    It isn't stealing. It is a democratic decision of the Oireachtas. They can vote to take the monies from any tax and spend it on any service they want.


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  • Closed Accounts Posts: 4,024 ✭✭✭Owryan


    Being honest, how many people really cared about the water infrastructure and its neglect until it was decided they had to pay for it?

    I don't remember too many rally's demanding that funds be diverted to mend broken pipes.

    From memory people marched to get more money for schools, hospitals, the old and numerous other issues. Yet at the same time people protest at the idea we need to raise taxes or introduce charges to pay for them


  • Registered Users, Registered Users 2 Posts: 5,336 ✭✭✭Mr.Micro


    For Reals wrote: »
    If we cannot fund water, if our government cannot supply a basic requirement for life that literally falls from the sky, we should be looking at how the state manages our finances not thinking up new ways to tackle ever increasing costs.
    If metering is deemed the only way to go, let the local authorities oversee it.
    I'm not interested in rehashing the LA debate as they can't be compared to IW as the LA's never were given the resources or remit to overhaul the system.

    Back on topic, The water costs are both tax(es) and a charge. That's purely factual.

    Why should the LA s oversee water provision etc? In the UK water is provided by various water companies. The LA s should have been overhauled years ago and IMO many are not fit for purpose, let alone to give them the water gig, again. The standard of water provision and quality up and down Ireland is a very mixed bag. The infrastructure is appalling. Who was looking after the water all along ...the LA s.

    Not a day goes by but someone is whinging about the water, and the charges on the radio or online. Many Irish people just do not want to pay for anything, it is as simple as that. Yet expect. The argument is, but we have been paying all along in taxation.... And now we need to pay a bit more. We pay road tax, despite paying in taxes as well.


  • Closed Accounts Posts: 1,120 ✭✭✭NorthStars


    Mr.Micro wrote: »
    Why should the LA s oversee water provision etc? In the UK water is provided by various water companies. The LA s should have been overhauled years ago and IMO many are not fit for purpose, let alone to give them the water gig, again.

    The staff 'on the ground', now under the direction of the new quango, are the same staff who were working as LA employees in the water services divisions.

    A fact borne out by the Eurostat report.

    Indeed the head chap in IW is a serial county manager from the LA system.
    His record, if anyone wants to look over it, shows what he is.

    IW are now on the government balance sheet and will be for the foreseeable future.

    You will be paying from your general taxation, your LPT through the LGF, your motor tax through the LGF, from the NPRF, from 'once off' subventions from central coffers and, if you choose to, through a direct charge.


  • Closed Accounts Posts: 7,964 ✭✭✭For Reals


    hold your horses.

    That would require sustainable adequate taxation.

    No way, we wont pay!

    No we'd pay the tax...but what of the charge? ;)


  • Closed Accounts Posts: 7,964 ✭✭✭For Reals


    Mr.Micro wrote: »
    Why should the LA s oversee water provision etc? In the UK water is provided by various water companies. The LA s should have been overhauled years ago and IMO many are not fit for purpose, let alone to give them the water gig, again. The standard of water provision and quality up and down Ireland is a very mixed bag. The infrastructure is appalling. Who was looking after the water all along ...the LA s.
    The LA's as you know, never were given the budget of IW and told to overhaul the system. They were the caretakers.
    And why put the Department of the Environment, overseeing Local Authorities, with a water maintenance and supply department in every district in charge of water when we can create a brand new black hole of colossal proportions such as IW? Yeah, you're right :rolleyes:


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  • Closed Accounts Posts: 4,354 ✭✭✭Redbishop


    For Reals wrote: »
    I simply can't pull them out of my arse Godge, I'm not Fine Gael. And published by who? Are you asking me to submit a thesis based on research from an alternate reality so I can compare?

    Going by what we know;

    Save the tax payer with no Irish Water set up. No consultant fees. No board. Basically every penny spent on IW.
    Put money directly into the water supply repair in a first time ever budget specifically to do so, with local authorities. IW is a gimmick.



    You're all turned around. It's certainly a most pressing issue for Fine Gael. And no, you are correct, most of us never paid any heed to monies put toward water maintenance and supply. Your point is lost on me.
    Now we are being charged and having millions wasted via IW, it is an issue. And if Fine Gael can't supply water they are simply doing a piss poor job of it aren't they? I mean we never had to even think of the amount of monies afforded to water before now, did we?

    IW is a failed money laundering venture.

    Well certainly the LAs are a failed water fixing venture.
    The system has constantly been getting worse under their stewardship.
    IW has only been in existence for a short while and the water quality has much improved for thousands of consumers since.
    I have asked this question many times on another thread, if there were no charges being introduced, I wonder how many would turn out to the marches?
    IW Imo is not the reason for the sudden discontent, it is simply the charge.


  • Closed Accounts Posts: 1,120 ✭✭✭NorthStars


    Redbishop wrote: »
    Well certainly the LAs are a failed water fixing venture.
    The system has constantly been getting worse under their stewardship.
    IW has only been in existence for a short while and the water quality has much improved for thousands of consumers since.
    I have asked this question many times on another thread, if there were no charges being introduced, I wonder how many would turn out to the marches?
    IW Imo is not the reason for the sudden discontent, it is simply the charge.

    The works you have seen completed by the IW quango, using LA staff and subcontractors, are works that were planned and in many cases commenced by the LA's.
    The reason the system was getting worse was the lack of funding provided since 2011 by FG & Labour.
    It's the old story, run the system down and then privatise it.....


  • Closed Accounts Posts: 7,967 ✭✭✭Synode


    NorthStars wrote: »
    The works you have seen completed by the IW quango, using LA staff and subcontractors, are works that were planned and in many cases commenced by the LA's.
    The reason the system was getting worse was the lack of funding provided since 2011 by FG & Labour.
    It's the old story, run the system down and then privatise it.....

    So a lack of funding was the problem. Would you say raising additional funding is the solution? Would you agree that water charges are the way to raise this additional funding?

    Also, every single Government budget was cut when FG came to power. This wasn't a tactic to bring in water charges or privatise it eventually (wherever you're getting that from). It was a necessity in order to reduce our current spending.


  • Registered Users, Registered Users 2 Posts: 43,311 ✭✭✭✭K-9


    Mod

    We're starting to go down the same route as other IW threads on the site. That isn't what this thread is for. Stick to the topic in the opening post.

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



  • Registered Users, Registered Users 2 Posts: 34,216 ✭✭✭✭listermint


    nice_guy80 wrote: »
    Well, the government have already stolen a load of motor tax money to fund the Irish Water bill

    so cuts have been made to roads maintenance budget of every county council
    and I have noticed a deterioration in the quality of roads, especially the regional roads

    This is very evident and visible in the likes of Meath.


  • Moderators, Politics Moderators Posts: 41,239 Mod ✭✭✭✭Seth Brundle


    NorthStars wrote: »
    The works you have seen completed by the IW quango, using LA staff and subcontractors
    For the record, the LA staff are former LA staff. They are now IW staff.
    This particular wage bill has been removed from the national exchequer to a utility company.


  • Posts: 8,385 ✭✭✭ [Deleted User]


    Quin_Dub wrote: »
    Arguably, Social Welfare could move to that model as well with compulsory "unemployment insurance" instead of flat rate payments funded from central taxation.

    Like PRSI??


  • Closed Accounts Posts: 7,967 ✭✭✭Synode


    NorthStars wrote: »
    Which is being almost completely funded by the exchequer and will remain on the government balance sheet for the foreseeable future.

    Every Euro raised via water charges is a Euro that the Government no longer has to contribute


  • Closed Accounts Posts: 1,120 ✭✭✭NorthStars


    Synode wrote: »

    Also, every single Government budget was cut when FG came to power. This wasn't a tactic to bring in water charges or privatise it eventually (wherever you're getting that from). It was a necessity in order to reduce our current spending.

    So, this government deliberately slashed the funding of water supply, endangering the life of the citizens of this country, in order to appease others???
    That's some claim.


  • Closed Accounts Posts: 1,120 ✭✭✭NorthStars


    Synode wrote: »
    Every Euro raised via water charges is a Euro that the Government no longer has to contribute

    I'm not going to start an argument with you.
    You are by far the most prolific poster on the IW subject across all threads.
    The fact is, that even if the government get 100% payment it will equate to around €270 million, take off the €140 million, plus admin, of the 'grant' and with full compliance they'll get around €120 million.

    IW is not, and never was, fit for purpose. I know it, a lot of others know it and importantly, Eurostat know it.


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