Fianna Fáil says the proposed new system of water charges is exactly what it has been calling for.

The expert group on the subject is expected to suggest that water be paid for through general taxation.

The only households who would then have to pay water bills are those who are deemed to be wasteful in their use.

Fianna Fáil’s Michael McGrath says accepting the idea would be a major policy defeat for the Government.

Mr McGrath said: “It certainly would mark a significant departure from Government policy in terms of a water charges regime.

“It would appear to accept the principle, which we have put out there for quite some time, that the provision of water would be based on general taxation and funded through that mechanism, and that has been our party’s policy.”