Fianna Fáil leader Micheál Martin has denied that a proposal from his party that water charges be abolished is a U-turn.
This afternoon, the party's members received the submission to the independent Expert Commission on Water Charges.
It states that domestic water charges should be ended and the revenue loss should be compensated by an increase in the exchequer subvention.
The submission states that the legal advice to the party is that there are strong grounds to contest if necessary in any legal action by the European Commission for not imposing charges.
It also states that overdue bills are a legal charge and should be paid.
It says that the independent commission should look at mechanisms to refund bill payers such as a tax credit or give a clear outline on how to pursue non payment based on international best practice.
The submission states that investment in water services should be financed through the central exchequer, strategic, investment fund and the European Investment Bank.
Speaking on RTÉ’s Morning Ireland, Mr Martin said it was clear the existing situation was untenable and a fresh start was needed.
He said he was not proposing the abolition of Irish Water, at this stage, but there needed to be an external examination of how it is working to ensure stronger efficiencies.
Mr Martin said that Fianna Fáil had legal opinion to the effect that the European Commission was wrong in its assertions that Ireland must impose water charges.
He added that this legal opinion has been made available to the commission in relation to water charges and he believed the Government should fight the European Commission.
Former minister for the environment Alan Kelly said the European Commission has strong views on water charges and said that Mr Martin "factually didn't know what he was talking about".
Speaking on the same programme, the Labour TD said he would ask Fianna Fáil to publish the legal advice it has concerning water charges and he believed that the legal advice would be flawed.
"The Attorney General advice to Minister [for Housing Simon] Coveney, I would like him to give us an impression of what that is because it is very clear and that is the most important that the Government can take.
"If Micheál Martin believes he has advice that is contrary to that, then he should publish it. And I challenge him to publish it."
Mr Kelly said he understood it was a hugely unpopular charge but that everyone should pay a little for what they use.
He added that it was Fianna Fáil and the Green Party who ensured Ireland would have water charges in the first place.
Asked about Mr Martin's comments, Mr Coveney said they were not a surprise but it will be the EC's job to come up with new proposals on how water services are paid for.
Mr Coveney said it was important that Mr Martin had indicated that Fianna Fáil would seriously consider the proposals which are eventually made by the expert commission on water services.
Mr Coveney said that different parties had different perspectives on water charges, but they all "must take the process seriously, work with the recommendations made by the commission, and try to find a compromise that everyone can live with".
The Anti-Austerity Alliance- People Before Profit group has also submitted its submission to the commission, suggesting the abolition of water charges and Irish Water.
The group also says water services should be transferred back to local authorities and be managed by a "single national water and sanitation board".
There should be an amnesty for outstanding bills and a refund for those that have paid, it added.
Sinn Féin leader Gerry Adams, meanwhile, has welcomed what he described as the "belated U-turn by Fianna Fáil leader Micheál Martin on the scrapping of water charges and the need for a Commission of Investigation into NAMA's sell-off of its Northern loan book".
Green Party Leader Eamon Ryan, however, has criticised Mr Martin, saying: "Fianna Fáil’s U-turn on the issue of water charges is a return to populist economics, which will cost us all dearly in the end.
"In 2009 the Green Party and Fianna Fáil agreed to implement the recommendation of the Commission on Taxation to introduce a charge which would promote conservation of scarce water supplies.
"That commitment was written into our revised Programme for Government, without any objection from any of the Fianna Fáil negotiators."
