A second meeting of the Cabinet is to take place later to discuss plans to remove the threat of jail from people who refuse to pay water charges.

The proposals from the Departments of Justice and Environment will see annual penalties imposed on those who cannot or will not pay a number of bills such as the water charge or TV licence.

Ministers discussed it at the Cabinet meeting this morning, which was cut short to allow them attend the Arbour Hill commemorations.

They will gather again later this evening.

Speaking on his way in, Public Expenditure Minister Brendan Howlin says bills must be paid.

Under plans from the coalition those who cannot or will not pay water bills will see penalties added on a yearly basis.

After 12 months a levy or fine of €30 to €60 will be added depending on the household, and this will double each additional year.

However, the coalition feared a raft of people would be brought before the courts for not paying and so new measures have been drawn up by the Department of Justice and the Department of the Environment.

This would exclude the threat of jail from those who refuse to pay.

Instead, attachment orders could be made allowing the charges be deducted from salaries or social welfare payments or attached to the property meaning the house could only be sold if the bills are paid.

But anti-water charge campaigners claim the scrapping of jail terms for those who do not pay bills demonstrates the 'panic' their movement has caused.

Brendan Ogle from Right2Water believes the government is feeling the pressure from those opposed to the new system.

And Fianna Fail has dismissed the plans as a stunt.

Fianna Fail justice spokesperson Niall Collins says going after someone's social welfare when they have demonstrated an inability to pay is a step too far.