It emerged at the Public Accounts Committee meeting today that a large portion of the motor tax receipts is being handed over as a subvention to Irish Water.
Fianna Fáil committee member and Spokesperson on Public Expenditure and Reform Sean Fleming brought this information to light while questioning senior officials from the Department of Environment at the PAC.
It was revealed that €290m from motor taxation was given as a subvention to Irish Water by the department in 2014.
€265m is being raided from the motor tax fund this year and €316m will be taken from the proceeds of motor taxation in 2016 to prop up Irish Water. The total of €871m is part of the overall taxpayer funding of €2.6 billion which is being given to Irish Water by the government to cover its costs up to the end of 2016.
Deputy Fleming said: “People are paying on the treble here for Irish Water. The public have paid for the water infrastructure through general taxation, they will be receiving bills from Irish Water shortly and now they are finding out they’re propping up Irish Water with their motor tax as well. People will be utterly shocked to hear this news.”
“Irish Water is a financial fiasco and the sooner the Government accepts this the better.”