Irish Water is to be given money to fund over 1,000 voluntary redundancies at local authorities.

A memorandum brought to Government by Environment Minister Phil Hogan sought the money to slim down the new semi-State body as it takes over responsibility from councils.

Earlier this year, the ESRI's Professor John Fitzgerald said Irish Water would be so over-staffed it would lead to higher charges for Irish households.

This new memorandum from Environment Minister Phil Hogan is aimed at giving clarity to how the semi-state is going to slim down as it takes over responsibility from city and county councils.

Irish Water is being given about €39m to secure 1,100 voluntary redundancies from local authorities - who will otherwise have to be paid for by the new firm.

The news comes amid Cabinet tensions about the final bill for water charges, and mounting public opposition.

Contractors in Co Cork were yesterday blocked from installing meters in Togher after a stand-off with protesters.