Labour has hit out at Sinn Fein for opposing the water charge and said it will sink the plans for the investment in the Garryhinch Reservoir in Laois-Offaly. The reservoir was to be a Bord na Mona-Irish Water joint venture costing €550 million which would create hundreds of jobs and serve as a major economic driver in the midlands.

Senator John Whelan said Sinn Fein's mealy-mouthed opposition to water charges has played a big part in Irish Water shelving the Garryhinch Reservoir.

He said: "Ironically, it is Sinn Fein's Brian Stanley who is their so called Environment Spokesman - misleading the public once again that they we can have everything, but not explaining who is going to pay for it. There is a direct connection between the modest water charge and the Garryhinch Reservoir. Irish Water have not been able to take the project off balance sheet, so therefore they have not the funds or capacity to raise the finance to fund the large scale investment required.

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"Sinn Fein's watery stance on charges has once again cost the community dearly and instead of an environmentally friendly Eco-Park anchored by the Garrhyhinch Reservoir which would serve as a major tourist attraction and leisure activity amenity the local communities will instead get a monster wind farm on the vast expanse of cutaway bog.

"Now Irish Water's proposal to build a multi-million water pipeline from the Shannon without incorporating the Garryhinch Reservoir as the preferred option is short sighted, lacks ambition and vision.

"This proposal is grievously flawed and will have yet to garner public support, planning permission and ultimately capital funding - from the next Government. I believe that it would be nonsensical to spend a vast amount of money on this planned pipeline and only half do the job."

(CD/LM)