Taoiseach Enda Kenny has revealed that the crucial EU market corporation test, which will determine the financial viability of Irish Water, has been delayed.

The results of the test, being carried out by the Luxembourg-based Eurostat body, were expected to be known next month.

However, Mr Kenny told Fianna Fáil TD Sean Fleming that the process will now not take place until June.

Mr Fleming said last night that he intends to ask the Central Statistics Office to appear in front of the Oireachtas to discuss the matter.

"In real terms, it is just as likely to slip into the autumn," said the Laois/Offaly TD.

"This market corporation Eurostat test is the centrepiece of the Government's entire Irish Water strategy," he added.

Government sources pointed out that Eurostat is completely independent from any Government in EU and it will decide when to publish the results.

A recent report by the European Commission voiced serious concern about whether the public utility can fund itself into the future.

EU officials warned of "uncertainty" surrounding the prospect of Irish Water passing the market corporation test -which will determine whether the company can be kept off the Government's books.

Failure to pass the test could threaten the Government's pledge to slash taxes and increase spending in next year's Budget.

The draft report warns the revised water package has "diminished" the prospect of Irish Water being self-funded.

The package, which is capped at €160 for all households, is the root cause of the commission's concern.

"There will be no certainty about the fiscal treatment of Irish Water until April 2015," the report states.

"The Government appears fully confident that Irish Water will pass the market test, but this will be determined ultimately by Eurostat and most likely by April 2015. The revised water package has nonetheless increased the uncertainty around Eurostat's decision."

Officials warned that the uncertainty surrounding the outcome of the test has increased because of lower than expected revenue collection from domestic charges and the capping of charges until 2019.

The report also says the €100 grant amounts to an "Exchequer transfer to Irish Water via households".

Irish Independent