The cost of living is out of control. Workers and families are at breaking point as they struggle to keep up with sky-high bills. Their quality of life, their ability to plan for their future and their mental health are now really suffering. People are fleeced with extortionate rents and rip-off insurance costs. Childcare fees are the equivalent of a second mortgage, the price of the weekly shop has gone up, while households have been hammered by more than 30 increases in energy and fuel bills just this year. Many people feel they are caught running an unwinnable race with no end. This is no way for people to live.

My colleague, Deputy Kerrane, has an online survey on the cost-of-living crisis. So far, just over a number of days, 14,000 people have responded. I would like to share some of the responses with the Taoiseach.

Siobhan said:

I am commuting from Quilty Co Clare to Limerick to work. I am paying upwards of €75 on diesel a week, that’s an increase of €15 a week compared to June, the price of food is also rising. I will soon have to buy oil for the house and that price too is also rising. I will not be able to afford my basic needs to survive.

Alison said:

My husband and I both work. We have two kids. Our rent is €1200 per month. Childcare for the two of them is over €1000. We are drowning in debt, car loans and bills. My husband is signed off as he is now suicidal. It is devastating.

Kevin said:

I work full time, earning what is considered a decent wage. I'm living month to month using my credit card for any extra spending. No nights out, no family holidays, no fancy house. I work to pay essential living costs. I cannot plan for a rainy day.

This is just a glimpse of what people are going through. In the budget debate, Sinn Féin outlined for the Taoiseach how he could start getting the cost of living under control. We called on him to cut rents and put a month’s rent back into tenants’ pockets through a tax credit but he did nothing for them. We asked him to cut childcare fees by two thirds, but he chose instead to cap fees at their current unaffordable rate. All he did was make it harder for people to light and heat their homes with another carbon tax hike.

People are at the end of their tether. The Taoiseach cannot continue to sit on his hands; he needs to start standing up for people. So far, he has ignored our calls to respond to the cost-of-living crisis but today I am going to try again to get him to respond because I believe he has an opportunity to make a difference on energy costs. There are options. Ba cheart dó VAT a ghearradh mar tá daoine faoi bhrú. Caithfidh an Rialtas sos a thabhairt dóibh. I ask the Taoiseach to temporarily cut VAT to zero on energy bills for the winter months to give people some breathing room. Has he considered this action? Has he discussed it with the European Commission? Temporarily cutting VAT on energy bills would alleviate at least some of the pressure people are under. I ask him to do this as a matter of urgency.

There is no question but that inflation has picked up recently all across the world, including in Ireland and the rest of Europe. The annual rate of consumer price inflation was 5.1% in October, the highest since 2003. Among the key factors are the supply chain disruption, issues caused by the impact of Covid on supply chains across the globe, and the consequent imbalance between supply and demand. There are also issues specific to energy on the global market, particularly regarding gas. Therefore, the carbon tax is not the factor responsible for the inflation, and the Deputy should not try to give the impression that it is, which she has been consistently doing. I will come back to that.

I accept fully that prices are increasing. They are increasing predominantly because of external factors, which are global. Every country is experiencing increases. It was discussed at the recent European Council meeting, particularly in respect of energy prices. A broader range of issues determine prices, in particular the supply of gas. What came out of the meeting regarding the energy mix within Europe was the view that we have to drive and expand the provision of renewables even further to achieve sustainability in respect of both price and what is best for our environment. We have to develop very strong interconnection to have more sustainable energy arrangements in the future.

In the budget, we introduced a tax package worth approximately €520 million, which Sinn Féin opposed but which will give workers relief and help them. It will help with, but not meet all, the additional costs. It will help workers to deal with the increased cost of living. We also introduced a social welfare package worth approximately €550 million to guard against fuel poverty and specifically target those on low incomes who are most at risk owing to increasing energy costs.

We made a very significant decision to back workers in childcare, working with the unions and other representatives of workers to create a sustainable pathway for all those who work in childcare through a joint labour committee, and also working with employers and employees. The State is providing substantial financial underpinning so that there will be career pathways. The Deputy mentioned a freeze of childcare costs but we want to go further in reducing them. The budget, which was substantial, represents part of a multi-annual approach to transforming childcare, having regard to childcare workers, the development of the child, affordability, access, and sufficiency of provision.

The Deputy referred to a tax credit regarding rent. There is no guarantee at all that it would achieve the outcome she desires. The Minister for Housing, Local Government and Heritage has brought in measures to restrict rent increases but the inflationary spike has overtaken them. However, he is going to bring in further legislative measure to deal with this. He will bring them before Government shortly. They will result in further controls pertaining to rent increases. The most fundamental ways to deal with rent increases, however, are to increase housing supply, provide more cost-rental accommodation and introduce other affordability measures, which we have provided for legislatively. This is not just happening in the Republic; it is also happening in Northern Ireland, as the Deputy knows well because her party is in power there. Energy bills are going through the roof in Northern Ireland. Gas prices have jumped there by 35%. This is further evidence of what is happening on the island as a whole and in the rest of Europe and the wider world. We will do our best to protect the low-income groups.

The Taoiseach cited external factors such as Brexit, Covid and the global energy market, but failed to answer the straightforward question I asked him. He has done nothing to alleviate the hardship that Siobhan, Alison and Kevin are experiencing. In fact, in the budget he did nothing for renters. He proposed to freeze unaffordable childcare fees at their current extortionate rate, and he introduced a carbon tax hike that will drive up people’s bills. I have asked him to change tack to respond to the realities of people’s lives. I have asked him to reduce VAT to 0% temporarily for the winter months to give some relief to families, workers and others who are struggling. The Taoiseach should not tell us what he cannot do; he should tell us what he will do and address the issue of VAT. The Czech Republic, as he knows, has made a move to cut VAT on energy bills to 0%. I ask him to follow suit and give some relief to families and others who are really suffering.

As I said, in the budget we did give relief; the Deputy just chooses to ignore it. In fact, she opposed it. She opposed the tax relief we gave to workers in the budget. She was against it. It is worth up to €500 million for workers on average incomes in this country.

What about VAT on energy bills?

Furthermore, in terms of the Deputy's comments on carbon tax, it is about time she got off the fence on climate change-----

Answer the question.

-----because she has been having an each-way bet every week in this House in recent years on the issues of climate-----

There is no each-way bet.

-----and carbon tax, which gives us the funding, by the way, to help people on low incomes meet the increased energy costs and prices.

Siobhan is not seeing it and neither are Alison or Kevin.

That is so disingenuous from the Deputy, that she continually-----

The Taoiseach's response is disingenuous.

-----seeks to exploit measures we have taken, which I accept are not popular but which are very important in dealing with the climate emergency facing the globe and this country.

What about VAT? Will I take that as a "No"?

The Deputy does not take anything as a "No". We have taken measures already to help people-----

The Taoiseach is waffling on-----

-----who are on low incomes in terms of fuel poverty through the measures we have taken through the increased taxation.

What about VAT?

Is that a "No"?