The minister responsible for water charges says Ireland could face EU fines if it doesn't get Irish Water up and running soon.

Phil Hogan says setting up the new utility is the only way Ireland can invest enough in water treatment plants to avoid heavy fines.

He has told the Dáil the government is inching closer to a deal on the structure of water charges. Phil Hogan says the proposal will have to be sent to the energy regulator for sign-off, "The final piece of the jigsaw, in order to allow the open and transparent and visible system in relation to the charges will happen very shortly. The government will be making, under the Act, the necessary submission to the Regulator, but the Irish Water dimension of it is there, and they are fully engaged with us in the establishing process."

But he says there is no prospect of the plans being abolished, because Ireland simply must upgrade its water treatment plants:

The Social Protection Minister says she believes there is a sound basis for agreement between the coalition parties on water charges.

Discussions between Fine Gael and Labour are continuing, though nothing was decided at Cabinet yesterday.

Joan Burton has cautioned that the Labour party still has concerns:

Meanwhile, protestors in Cork have vowed to continue demonstrating, after reports of injuries at a site in Togher yesterday.