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Dublin: 9 °C Sunday 19 May, 2013

New State body Irish Water will be part of Bord Gáis

Minister Phil Hogan has also confirmed that there will be no up-front charge for the water-metering programme.

Updated 16.40

IRISH WATER, WHICH will be established to oversee the delivery of water services in Ireland will be an independent, State-owned subsidiary of Bord Gáis Eireann.

The Government decided to run Irish Water under an existing utility instead setting up a brand new State agency after a detailed analysis was carried, the Department of the Environment announced this afternoon.

Irish Water will be established as a wholly-owned public water utility and will remain in public ownership, the department said in a statement following this morning’s Cabinet meeting, adding that legislation will be put in place to restate the existing ban on the privatisation of water assets..

Irish water will be a public utility -  there is absolutely no intention to privatise water services.

Minister Phil Hogan said that the Government aims to put in place a world class water and waste water infrastructure.

“Today’s decision is a very positive step forward and will allow the water reforms progress with renewed momentum,” he added.

Commenting on the weekend’s controversy over payment of the meters which will be installed in over 1.3 million homes within the next 48 months, Hogan confirmed there will be no up-front water charges for consumers.

He added that the regulator, which will be the Commission for Energy Regulation, will “ultimately decide on the funding model” and will have “the best interest of the consumer in mind”.

Similar to other utilities (gas, electricity) the consumer will pay for the delivery of water services through a variety of payment options.

The Department added that some of the figures about the cost of the metering programme have been “seriously exaggerated” by commentators.

It also confirmed that access to private property will not generally be required to install the meters or boundary boxes as they will be placed outside the curtilage of the property in the public footpath or grass verge on the roadside.

Householders will not have to give permission or do anything to facilitate boundary box installation. A short interruption to water supply (in the order 2 to 3 hours) will arise while the boundary box is being installed. Meters will be installed later.

Staff reductions not ruled out

The Government has promised reforms of the existing model which Hogan described as “not sustainable…efficient or effective”. Currently, it costs about €1.2 billion to fund the operational and capital costs of the water system.

He said Irish Water will work to reduce the above-average water leakage levels (+40 per cent) in Ireland and ensure compliance with public health and environmental standards.

Reiterating previous benefits of establishing a separate agency for water, Hogan said that 2,000 long-term construction jobs will be created by securing capital investment in the sector.

He claimed that a better system could also help attract foreign investment into Ireland.

The Minister said that Bord Gáis has the key capabilities “that can be brought to bear in the establishment of Irish Water”, citing its record in raising finance and experience in operating as a utility in a regulated environment.

It also has specific skills from its own experience of transformation, customer relations, network management, metering and utility operation that can be quickly deployed to assist in the successful establishment and operation of Irish Water, added Hogan.

There will be phased transitions of functions from local authorities to Irish Water over the next three years. The 34 local authorities who currently oversee the delivery of water services will be engaged as agents of the new agency for ” a considerable period of time” and staff members will remain in the employment of their current authority.

The Government acknowledged the ”significant change” this posed for employees and said a “detailed engagement” with staff and trade unions is required.

“Following the decision today, work will be focussed on the development of an implementation plan to provide a roadmap to addressing all the issues arising in this reform programme,” the Department of the Environment said. “We will be engaging with ICTU in advance of finalisation of this plan.”

However, it did not rule out staff reductions.

It will ultimately be a matter for Irish Water to determine the staffing and skills required for the new organisation.   In the initial phase, Irish Water will work largely through service level agreements with local authorities. This will ensure a smooth transition to the new model and guard against the loss of local expertise. It will also mean that the majority of staff will remain in the direct employment of local authorities for a considerable period.

Funding

When fully functional, Irish Water intends to raise funds on financial markets in the same way as ESB and Bord Gáis. Other monies will come from domestic and non-domestic charges and Government funding.

Any revenue generated by the utility will be re-invested in infrastructure, as there is a huge requirement for upgrading and providing new infrastructure over the coming decade.

The overall water reform programme will bring real benefits to people and communities right around the country including through investment in new water and sewerage infrastructure which is vital to support jobs and businesses and ensure high levels of compliance with environmental and public health standards” said Minister of State Fergus O’Dowd who has responsibility for NewERA, Fine Gael’s economic stimulus proposals.

An implementation plan covering legal, governance and organisational issues at Irish Water will be worked out between the department, local authorities and NewERA in the coming weeks.

It is expected that Irish Water will be established under its own statute by mid-2013 and will begin taking over local authority operations on a phased basis from January 2015.

17 questions (and answers) about those new water charges>

No upfront charge for water meters – reports>

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Comments (107 Comments)

  • Thats gas Ted does that mean we will have sparkling water on tap ?

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  • There’ll be definitely more drinking at home with this new water charge. I’m just wondering though will it be cheaper to drink beer or tap water.

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  • Reg 17/04/12 #

    Agua Con Gas!

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    • Very good.

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    • I dont care who gets the contract. My mantra will still be – Not Paying and I am taking the stance advocated by Gilmore before he became a fat cat politician.

      When Eamon Gilmore was a mamber of the Democratic Left this is what he had to say about the FF/Lab coalition of the day and their then plan to introduction of water charges

      “Water charges are another TAX on workers on top of PAYE, PRSI and LEVIES.

      This year the FF/LAB Government is demanding MORE TAX from the PAYE taxpayer. They have CUT mortgage interest relief, CUT VHI relief, IMPOSED Residential Property Tax and now they are making us PAY FOR WATER. But they are still looking after the tax dodgers.

      Tax cheats are getting a tax amnesty.

      They are also looking after themselves. Ministers are getting a pay rise of £220 a week.

      DEMOCRATIC LEFT IS OPPOSED TO WATER CHARGES.

      The PAYE taxpayer, whom we represent, has already paid enough tax for local services AND should not have to pay again…………. The problem now is – we have water charges, but no improvement in local services. If anything, services have worsened – because all that the water charges are doing is filling the shortfall in Government funding to the Council” Eamon Gilmore T.D., Dail Eireann, Dublin 2

      (I used capitals where the text I took this from had used italics.)

      My advice to all those that think we should do what Gilmore tells us – NEVER trust a turncoat and always give them the deaf ear.

      .

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    • Reg 17/04/12 #

      Hey Ann I used to have trust (well some anyway) in the Catholic church but 20 years late I have very different views. Are people not allowed to change their stance on something? While I am no big fan of Eamon Gilmore I have less respect for people who are so dogmatic that they refuse to change to new circumstances.

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    • Reg the point I am trying to make here is that Eamon Gilmore and his Labour Party are great at saying one thing and then doing another. They have become the party of U-Turns. Of course people are entitled to change their mind, it is our right to do so. But to do so just to hold onto power and status is immoral and unethical. Do you remember the words – Frankfurts way, no increase in student fees, the leaks in the water system will have to be fixed before we could expect anyone to put their hand in their pocket. They chose the fiddler, and now they are changing their tune to suit the fiddler and not the audience who are paying them. And they most certainly are not representing the “coping classes”.
      It would appear that they are willing to change the foundations of their ideologies as long as the price is right.

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    • Ah sure when they start Frackin we’ll have water and gas comming out of the same tap at the same time……Sure we’ll be the envy of Europe.

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  • Off topic I know but not liking the adds on journal.ie iphone app :(

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  • Government ministers obviously rolled out deliberately with conflicting stories, so to create resistance and anger. Then in flys Superhero Hogan to tell us all that there will be no upfront charge. An amateur and obvious pr stunt. I’ve said it before and I’ll say it again, whoever is advising the government should seriously re consider their pr gig. Must be a bunch of transition year students or something cause it stinks of never ending pr desperation tactics with the last few months.

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    • Very clearly the case, and “no upfront charge” is about as meaningful as “free at the point of entry” (expect to hear that old chestnut bandied around a lot next year when higher education “reform” is back on the agenda) , it’s a loan with interest on the right to water.

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    • mcbab 17/04/12 #

      No. The media and sites like this went off on one. They created confusion where there needed to be none.

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    • Mcbab I think you’ll find Enda kenny himself proclaimed there to be an up front charge on prime time tv a mere four days ago. Can’t see the collusion between media in that instance, can you?

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    • Dietrich, the right to water? No one is stopping to drinking it from the local river or looking up to the sky with your mouth open. But after its put through the four purification processes and piped into your home, It usually comes with a fee.

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  • Ok seeing as there is no way around this and it is looking likely to go ahead, the quality of water coming through my taps needs to be seriously improved. Not paying for this shite.

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    • G. Smith 17/04/12 #

      Whilst I agree that water quality must be higher, it’s a charge for waste water as much as it is for incoming clean water. Both providing clean water and treating waste water are relatively expensive processes.

      I’m converned this will become a tax on the clean and it’ll lead to a lot of people stealing water beyond meters. Just as charging for waste has caused a lot of litter this has potential to cause a lot of leaks from people tampering with the piping etc. A portion of the cost of this should be put into a sinking fund to ensure any replacement pipes are burried deeper, thus avoiding frost issues in colder winters causing the sort of chaos, leaks and shortages we had in the previous colder winters.

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    • Nooo Begrudgy – not liking the tone of your comment, its a bit defeatest and far from the solid stance I have come to expect from you. Dont let them wear you down, we won the water battle before and we can win it again. Hold strong and if you feel yourself faultering just reach out and one of your many comrades on here will give you the help you need to find your fighting spirit. United we’re strong – divided we fall.

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  • Once those meters are installed the cost will rocket. Softly softly catchee monkey !

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  • Whatever about the meters fiasco, I think introducing water charges is a good idea. It’s we who are paying for the water supply anyway through our taxes, so those of us who use/waste more water should pay more, and those who make an effort to conserve water should be rewarded for doing so. It will act as an incentive to people to conserve water.

    Hopefully it will also act as an incentive to this new company to fix all the bloody leaks and save itself (and us) lots of money! The jury’s out on that one though…

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    • I always made an effort to conserve water and will continue to do so, but unfortunately I will have to pay for my efforts in the future. So your statement that I will be rewarded for doing so is not true.

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    • What about the money previously allocated by central government to local authorities for water services? Will we be getting that back in the form of tax reductions? Why can’t water be paid for out of the household tax when that comes into effect?

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    • What I mean is that you are already paying for your water through your taxes, but you are subsidising those who waste water because they make the whole system more expensive to run.
      Now you will just pay for what you use.

      Hopefully the incentive to stop wasting water will make the whole system cheaper to run too.

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    • James the people who waste the most water are the councils themselves who lose almost half of it through leaks. if you don’t realise that this is purely a revenue raising con by the government and nothing to do with water conservation then you are extremely gullible. Will the government reduce the other taxes we currently pay which fund water production at the moment, of course they won’t.

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    • If the operational costs of the existing system are €1.2 billion and this new tax covers that cost (1m households paying €100/month), where do you think the €1.2 billion being saved by the government is being diverted to? Social programs or ECB repayments? Even if they initially re-invest it to upgrade the distribution channel, eventually there will be a surplus cash supply which will not result in a reduction in water charges.

      What happens if someone doesn’t pay this bill? Will they cut off your water supply?

      Despite the fact that your intentions seem good in terms of economic impact, this isn’t the way to go about it. I don’t understand how you can condone paying an extra tax to receive no extra product or service in return. Why do we pay PAYE, PRSI or VAT at all in the first place if not to preserve a fundamental right to fresh water that all Irish citizens should have?

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    • I’m thinking in the long-term here. At the moment the country’s accounts are banjaxed. Of course our other taxes won’t be decreased in the short-term as a result of the introduction of water charges. However, even if these charges were not introduced, our taxes would be increasing in the short-term anyway because it costs money to run the country.

      So one way or another we were going to be paying extra taxes. I think it is fairer to break down what you are paying, and what you are paying it for. That way you can control what you are paying and take responsibility for managing your own usage.

      I absolutely acknowledge the ridiculous amount of water that is being lost through leakage. That is something that should be dealt with urgently. However, I don’t think this means that charges shouldn’t be introduced. If both were done properly then we would have a much more efficient system.

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    • In regards to blaming just the council for waste – firstly, they don’t have the finances to replace and upgrade the old pipes. This has been known for years, even during the good times, but its taking another government and during a recession to get serious about addressing the problem. I would have said bad timing but seeing as 2014 at the earliest will be the time a bill may arrive through our doors – I think that is positive for the people who have had enough and cant pay any more at the moment. Secondly; You cant blame the council. They repaired what they could, when it needed repairing but their hands were tied after that as money wasn’t their to address the bigger picture. People *do* waste water because its free – there is no point pretending everyone uses only what they need, and a low usage. I think people will become more economical in terms of water usage and if your neighbour wants to have the tap running as he washes his car three times a day – hey, what do you care. Your not going to have to pay for his water usage anymore. Finally, as for tax breaks – the % of money set aside for water will probably remain in place for sometime until the service can run independently on its own reserves. When that happens, id like to see the money being directed at other public services which remain cash strapped and need the money. No point refunding if other services are looking for cash and will eventually need it so that the government has to increase taxes to make up the shortfall, which could be significantly smaller if the money was redirected appropriately.

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    • The funny thing is Robert I don’t think they can, access to water is a fundamental human right as far as I am aware so I think they can fine you, get judgements against you take you to court and maybe even lock you up, but they can’t cut you off!!!

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    • You’re correct Joseph. It still seems outrageous that someone could technically be incarcerated (where they can get all the free water they want) for not paying a water stealth tax.

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    • Robert, it’s hardly a stealth tax! It’s pretty explicit!

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    • If I’m understanding correctly, it’s not being established as a tax rather as a utility cost. Similar to electricity and gas, which is not viewed as a tax. By it’s very definition a stealth tax is one that’s levied in such a way that it’s not recognised as a tax. This being a good example.

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    • That’s fair enough Robert I fully take your point but I don’t think they’re trying to fool anyone. It’s the only feasible way of charging for water. They would have an easier time increasing an existing tax than they would introducing a charge for something that didn’t previously have a charge. Not to mention the fact that they’ve been told by their puppetmasters that they have to introduce the charge.
      I don’t think it’s intended as a stealth tax, although it may fit into the definition of one.

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  • The Labour Party website is still full of comments opposing water charges and why. Here is one of many examples http://www.labour.ie/press/listing/1260271868600677.html

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  • So if the water quality is shite like it is in alot of places will you get your money back?

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    • Paul 17/04/12 #

      Items for sale must be as described, of saleable quality and fit for the purpose. If they market it as safe drinking water you have a case for a refund, if they market it “smelly poisonous shite you can just about use to flush yer jax” then they have ya

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  • Bound to be a washout.

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  • Job prospects!! Get in there!

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  • It’ll probably be sold to the Chinese; a grand bunch of lads.

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  • It was inevitable that we would start paying for water as we’re one of the minority in the developed world who don’t.

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    • Fair enough considering they provide the water for themselves. It’s the water coming through the mains that costs €1.2bn annually yet it’s covered by everyone’s taxes regardless of how much water we use. The new system will have a free allowance of water and then a charge thereafter. Fair, progressive, and about time considering the rest of Europe has had them for decades now!

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    • It’ll only be fairer David if we get tax breaks in return seeing as we are currently paying the tax that covers it

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    • Also David large swathes of Britain dont they pay a standing charge based on property size and last time I looked it was still in Europe!

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    • but will still need a meter!?!

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    • @ David. It will only really be fair if the free allowance, as described by the government is actually generous. This generous free allowance implies that a person should be able to use all the water an average person would need to use in the normal course of events, without any extra charge. If this was the case, and only those who wasted water were charged, then I would be all for it. However, I suspect that this generous allowance will turn out to be yet another lie.

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    • Maybe because they have spent thousands upon thousands installing and maintaining this equipment . Alot of people couldn’t get onto a public scheme.
      If waste is the issue then Perhaps the government should have promoted the drilling of private wells . 40 euro a year for a meter before you turn the tap is a bit rich .

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  • Mmmm. Now, have I got this straight? Fianna Fail abolished water charges in the 70s. Charlie Haughey bought an election by this means. So back in the day FF, the biggest, bestest party in the land had a very good sense of what most people want. They retained this knack until a few short years ago. In fact they were still the most popular party when the country officially in recession, late 2007. 2 questions. Who opposed the abolition of domestic rates and water charges back then? And what is the basis for maintaining the policies of a desperately failed and utterly corrupt political movement now?

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  • Which buddy of hogans will be running this now I wonder !!!

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  • Peter 17/04/12 #

    Why don’t deep river rock and Ballygown take over.. Abandon the old fashioned piped system and have it as a bottled delivery system :D

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  • jimbo 17/04/12 #

    And yearly increases stuff it…

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  • Very handy for Bord Gáis – interesting to note that it’s CEO, John Mullins, is a former president of Young Fine Gael.

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  • Are my right or wrong in saying that didn’t the government announced lately that Board Gais is to be sold off. If that is the cause wouldn’t this new water board go with it and it will be privatised.

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  • Beam me up Scotty please. The last government broke the country and this lot are hell bent on breaking it’s citizens.After this they might as well make up a tax or charge for anything. How about Irish Air tax? Or death tax?

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    • @Kevin. Air is no longer free either. I was at my local garage today to pump a wheel and you must pay €1 to get air. This is not where you put a €1 in and get it back like shopping trolley’s they actually charge you €1 for 5 minutes use with the air. I think Esso are rolling it out to all stations

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    • Oaklane1 17/04/12 #

      @Eugene, why should they not charge for those air pumps, they do have a cost you know?

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    • Eugene, I dislike paying for things as much as the next person, but those air pumps are more expensive to run than you’d think. The equipment is expensive to begin with, the compressor is running all day using electricity, and valves and pipes constantly need to be replaced due to wear as a result of use and of people driving over the pipe / crashing into the unit etc. I have a footpump in the boot of my car, wouldn’t leave home without it!

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    • I was just saying there is a charge for the air and that’s my point in relation to water rates. Things that were free are no longer free and there is a cost for everything. I know the machinery is expensive and it really annoys me the lack of respect shown towards the equipment at times.

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    • This is the problem with the country now. We know the price of everything but the value of nothing any longer!!

      Back on point, this just smells of another HSE effort so that the Minster can say ‘ oh thats nothing to do with me, that’s the responsibility of Irish Water’ !!!

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  • When they sell off Bord Gais will this new utility be sold as part of the package?

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  • I can provide water for a 3rd world country for as little as E2 a month. So why the F&%k don’t we get concern to provide our water and not create another quango through Bord Gas.

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  • “Energy regulator will have best interest of the consumer” stop me before I choke on that brick .like how he managed to take electricity prices from the second cheapest in Europe to the second dearest and they have the audacity to call that acting in the consumer interest.
    Not 1 cent more .

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  • Do we get waterboarded if we don’t pay?

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  • I personally think that when ever some one on here uses foul language, attacks the person rather than the comment / story, or posts random off topic comments should have their accounts with journal.ie deleted / blocked from commenting. For far too long, this site is used to personally attacks other people, with the majority of them just hiding behind their user avatar

    To the Editors of The Journal – it’s time to clean up the mess this has become!

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  • Does this still mean we get the fluoride for free ???

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  • Water metering in 2012…jesus we’re about 20 years behind the rest of the developed world. Hard to believe its been flowing freely domestically up until now. Another FF clanger!!

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  • This seems like a perfectly reasonable set of proposals by the government but I fear that the majority of comments on this story will be dominated by the usual suspects who post on this site & others spouting venom about anything the government tries to do and see conspiracies in everything they do.

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    • mcbab 17/04/12 #

      James you are so right about that. So frustrating not to be able to have rational debate. Just too many anti everything posters on here. Also so annoying when they post incorrect information. Would be good if the journal could post corrections.

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    • Spot on. Its the same few names all the time. They know it all, they will pay for nothing!!…well just their internet bill so they can keep sprouting crap about government on here. Journal revolutionist I call them.

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    • Ha ha, I was remarking the same thing myself , true it is the same names all the time spouting government policy like the little lap dogs they have come to be, nodding in agreement all the time … Not for one minute do I believe that you all agree with the hhc or the now water and meter charges…..

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  • Snuffbox 17/04/12 #

    Just wondering is anyone entitled to a waiver on these water charges or will the “community welfare officer” be looking after this one too?

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    • The community welfare officer does not pay utility bills. That is yet another myth. They will give people half the money for a washing machine or fridge, you must produce an estimate first and the cheque is written out to the shop. They also give a winter clothing payment.

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  • No , no, no.

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  • Next time elections come round, everybody should boycott and not vote for ANYONE, they are all exactly the same. I’m ashamed to say I voted this lot in cos I genuinely thought they would do what they said. If nobody voted for no one, what would happen, you know like the household charge, not enough of a majority for any party???

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    • Nice one Joan, good luck with organising that one.

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    • Voter apathy is not something that we should be encouraging or advocating. Thousands of good, honourable and patriotic Irish men and women lost their lives so we could live in a “free and democratic” society.

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    • Is organised rejection of the current politics really apathy though Ann, choosing not to do something on principle and not being arsed are two different things. However, I would rather advocate spoiling the vote as a more tangible protest

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    • Being honest Joan . I cherish my vote , even tho I used it under false promises in the general election the fact I used it gives me the right to protest now. . . . I wil not advocate not voting or spoiling your vote. I will vote , I will vote no in the referendum, I will not pay the hhc, I will not pay this water charge .To hell with the troika who are dictating to us.

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