EU Commissioner for Agriculture and Rural Development Phil Hogan has said he does not believe he left the Government with a mess to deal with at Irish Water.
Mr Hogan was minister for the environment with responsibility for Irish Water before taking up his position in Europe in September 2014.
He was speaking at an event to mark the 60th anniversary of the Irish Farmers' Association.
Mr Hogan said water is a finite resource and if Ireland does not cherish it, the country will not have the health advantages associated with it.
The commissioner also said Ireland could lose competitive advantages for foreign direct investment in the future.
He said that Minister for the Environment Alan Kelly and the Government are doing everything to respond to people's concerns and ensure the maximum possible investment for the creaky system that exists.
This can only be done off balance sheet, to the tune of €700m a year, otherwise, he warned, income tax will have to increase.
EU Commissioner Phil Hogan at the @IFAmedia 60th Anniversary commemoration at the Convention Centre Dublin. pic.twitter.com/zHejm88l8J
— Micheal Mac Suibhne (@MicMacSuibh) January 6, 2015