Less than half of Irish taxpayers pay new water charge

DUBLIN, July 15 (Reuters) - Less than half of Irish taxpayers paid a new water charge in the first three months of the year, a figure opposition parties said was an embarrassment for the government following widespread protest against the unpopular measure.

Tens of thousands of people marched last year against the direct charge for water -- the final piece of a 30 billion euro, seven-year austerity drive -- in the biggest protests since Ireland (Other OTC: IRLD - news) 's financial crisis erupted in 2008. Some opposition parties support a boycott of the charge.

The state-owned Irish Water utility said it had collected 46 percent of the 66.8 million euros due from customers who are billed on a quarterly basis, a level it anticipated would increase in the second quarter once reminders were sent out.

Unlike some euro zone countries such as Greece, Ireland has few problems collecting tax, including a new property charge that also met with initial resistance.

Ireland's ruling coalition had hoped to put an end to the political damage wrought by the water charge protests by cutting the level of charges last year.

It is pinning its hopes of re-election early next year on voters starting to feel the benefits of Ireland's fast recovering economy by reversing some of the tax hikes and budget cuts put in place.

Environment Minister Alan Kelly said he was "very satisfied" with collection of the water tax to date, but opposition parties said the resistance shown to the charge would mean the campaign against it would continue in the run up to the election.

"This is a serious embarrassment to the government who have done their best to denounce and belittle the resistance to their introduction of water charges," Mary Lou McDonald, deputy leader of the leftist Sinn Fein party, said in a statement. (Reporting by Padraic Halpin; Editing by Catherine Evans)