Thursday, April 29, 2010

Water Tax

There is growing resistance to the imposition of water charges on homes in Ireland. It would seem sensible to tax such an essential a resource in order to ensure it is protected and sustained for future generations. However, there are some key arguments against the latest government proposal to do so;

There are no plans in place as yet that the tax collected from these charges would be earmarked for the improvement of Ireland's moribund water infrastructure. It is reasonable to assume that the moneys collected would simply go into the general state coffers. If the government is genuinely serious about conserving water, then it needs to dramatically invest in a system which allows nearly half the treated water in many local authorities to be lost through broken pipes.

Regarding the public's attitude to water conservation, I believe that if you hit people's pockets, they tend to adjust their behaviour accordingly. However, there is some credence in the supposition that if investment in the infrastructure is accompanied by a national educational campaign the same results could be yielded. This option is less attractive to those in power however, as it does not facilitate immediate results and is quite costly.

Another point of contention is that taxation of our national resource is an incremental step towards the privatisation of water. Whether this is fact or fantasy, it is worth bearing in mind as the people's water service should always be maintained by the people's representatives. Privatisation will not lead to greater efficiency - it would simply solidify a charge and instill a profit driven management of a national and natural resource.

I imagine the debate surrounding water taxation is bound to be controversial and one that will be hotly contested in the coming months.

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