The Taoiseach has denied that the Water Conservation Grant is an indirect subsidy for Irish Water.

Enda Kenny says the €100 payment to every home should not impact on the Market Corporation Test later this year.

Eurostat is expected to rule in May or June on whether Irish Water's debts should count towards those of the government.

The Taoiseach told the Dáil this evening he still expects Irish Water to pass that test: