Sinn Féin Finance Spokesperson Pearse Doherty TD has said reports that Eurostat has rejected plans to keep Irish Water off balance sheet is a major blow to the government.
Deputy Doherty said: "Sinn Féin's view has always been that the government's entire rationale for the Irish Water was flawed. It was simply a vehicle to charge people for their water.
"But the view that it could be kept off the state's balance sheet was fundamentally flawed for three key reasons which we pointed out at the time.
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"One, the so-called water conservation grant is nothing more than a transfer from government to Irish Water via households which which means this money would be likely to be deemed by Eurostat as expenditure by the government to Irish Water.
"Two, according to Eurostat a company must be fully functional for a number of years before it goes off balance sheet.
"And three, given the level of non-payment the government's figures simply did not add up. The money put into Irish Water by government must be less than what is returned by its customers.
"Today's ruling has proved Sinn Féin’s analysis correct. The government is now left with egg on its face as it argued time and again that its plan would pass the Eurostat test.
"The whole argument against Sinn Féin's call to abolish Irish Water is now gone. Enda Kenny should now accept defeat, he should scrap Irish Water and water charges once and for all."
(CD)
