The level of water charges proposed by the Government this week will not be sufficient to remove billions of euro of debt associated with Irish Water from the national accounts, as had been planned.
This is because the likely annual charge per household of €240 will not generate more than half of the income stream needed to fund the new utility, something that is necessary if the debts associated with the water and waste system are to be removed from the national accounts, water charges experts have told The Irish Times.
The creation of Irish Water could move billions of euro of national debt “off the books” and produce substantial benefits in terms of the cost of servicing Ireland’s borrowings, because it could feed into reduced interest charges.
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