The Minister for Public Expenditure has been slammed after claiming the suspension of water charges impacted the government's decision to prioritise tax cuts for the wealthy over investment in public services.

Sinn Féin TD and party spokesperson on water Eoin Ó Broin TD described Minister Paschal Donohoe's claims as "misleading".

He said: "The issue is not investment in water infrastructure versus housing, but prioritising investment in public services over tax cuts for the wealthy. This government has the opportunity and the means to upgrade the crumbling water infrastructure and fund the building of significantly more houses; however it is choosing to slash taxes instead.

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"Minister Donohoe is deliberately misrepresenting the funding status of Irish Water. The company is on the state balance sheet after failing the Eurostat market test last year and is likely to remain on the balance sheet for the next couple of years. Furthermore, the crisis in our water system is not down to the absence of domestic charges, but the unwillingness of this Government and previous governments to commit significant long term investment in upgrading the system."

(CD/MH)