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

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

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.

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.