Fianna Fáil has estimated that giving householders who paid their water charges a tax credit would cost €50 million.

The party has asked the expert commission on water services to examine how it can refund the people who paid their Irish Water bills.

Barry Cowen, spokesman for the party on water, said: "Fianna Fáil believes the commission should examine how householders who paid their bills can be refunded.

“A tax credit is one of the options that can be looked at and we are estimating the cost at €50 million. It is Fianna Fáil’s position that those who have not paid should be pursued too.”

In its submission to the commission, Fianna Fáil said the entire water system should be funded through general taxation and suggested it had no plans to reintroduce charges.

The party said it has legal advice which insists charges can be abolished without breaching an EU water framework directive.

The party has been accused of several U-turns on the issue of water charges, after it emerged that Fianna Fáil was not ruling out supporting the reintroduction of domestic water charges.

According to senior Fianna Fáil sources, the question of charging for water may be revisited after a substantial upgrade of the State’s water infrastructure.

‘Dizzying U-turns’

Sinn Féin TD Eoin Ó Broin said Fianna Fáil had made several dizzying U-turns on the issue.

“None of Fianna Fáil policy seems to be developed to reflect a permanent position.

“This is clearly exemplified with this water charges debacle and the party’s confusion over its position on rent certainty.

“It would appear Fianna Fáil changes policy at a whim, and demonstrates that they cannot be trusted.

“It is time for the party to clarify its stance on water charges for once and for all and put their money where their mouth is and vote in support of the Sinn Féin motion calling for the abolition of water charges next week.”