Environment Minister Phil Hogan has insisted a flat-rate charge for households will be brought in from the start of next year.

Minister Hogan's comments follow assertions from both the Taoiseach and Tánaiste that no final decision has been made on the matter.

Fianna Fáil say the Government's handling of the issue has caused "utter confusion", but a spokesperson for Minister Hogan said the position was clear and that the fee would come into force on January 1.

Water metering is also being introduced as one of the conditions of Ireland's bailout deal.

Former deputy director at the IMF Donal Donovan said we had delayed putting the charges in place during the boom period, but that they had to come now.

"We're one of the few countries in the world that doesn’t have a property tax…and one of the few in Europe that doesn’t have a water chrage...We should have introduced them a long time ago," he said.