The imposition of domestic water charges could be three years away, Minister of State Fergus O'Dowd has indicated.
During question time in the Dáil, he was asked by Fianna Fáil's Willie O'Dea about the installation of water meters in every home, and when the charges might apply.
Minister O'Dowd said legislation would be needed, after an assessment of the plan by an independent body was completed.
He said the installation of meters would only begin next year and it would take about 1,500 workers some three years to install them all.
The meters would cost €500m to install, with the cash coming from the National Pensions Reserve.
But by the time that money was repaid, the cost could be €1bn, he said.
He added that water charges were part of the bailout deal with the IMF and European Union, that was agreed to by the last government, and it would have to be implemented.
He said a standard household charge was the alternative to water charges, but water meters would result in reducing water consumption.
He did not believe it would make sense to transfer water staff now working with local authorities to the new national water authority.
And he said that about 45% of all treated water is lost nationally, although in some areas the loss is up to 60%.
Minister O'Dowd admitted that the new water meters will cost more than what it will cost to stop the leaks.
He said while the meters will be more expensive that fixing the leaks, they will reduce water consumption, as people will pay for water above a certain minimum that will be provided free.
