This time two years ago, we were in the midst of a general election. The Taoiseach will recall the election was brought about by the crisis in health. It was an election in which workers and families, frustrated and fed up with repeated failures of successive Governments in housing and healthcare, voted for change in huge numbers. Now, two years on and in the cold light of day, people see that these crises in housing and health have only gotten worse. We have record rents, soaring house prices and 1 million people on treatment waiting lists, and if that was not enough, households struggle to keep up with the cost of living that is out of control.

People are under huge pressure as they are hammered by non-stop price hikes in every area. The living standard of workers and families is squeezed by the highest rate of inflation in 20 years and a lack of Government action. For far too many people, being ourselves again means the stress and struggle of trying to keep up with soaring costs while wages stay the same. The yearly cost of putting food on the table is to go up by nearly €800. The cost of running a car is to go up by an average of €500. Record rents are up by 8.1%. Families are paying the equivalent of a second mortgage in childcare costs. The cost of lighting and heating a home is up a massive 53%. It is never ending. All of this adds up to a cost of living that is unbearable. The Government must urgently deliver a plan that gets these costs down, but this urgency is sorely absent.

People have been hit with 35 energy price hikes in the past year and the Government has been far too slow to react. The €100 credit for energy bills comes very late. The Government did not deal with this in the budget. It refused to sit on this matter in December and now the €100 credit will come into force only in March or April. Costs are now so far out of control that this will not be a game changer for families paying thousands just to light and heat their homes. It should be borne in mind that families pay these off-the-wall bills today and the benefit of the €100 will likely be cancelled out as costs increase further. Workers and families stretch themselves to make it to the end of the week and they deserve better than this slack response from Government. They want they need real action.

Tá an costas maireachtála imithe ó smacht. Tá daoine cráite mar gheall ar an ardú mór ar phraghsanna atá imithe ó smacht. Tá sé thar am ag an Rialtas gníomh a dhéanamh agus faoiseamh a thabhairt do dhaoine. Does the Taoiseach accept that we need great urgency in dealing with this cost-of-living crisis?

Does the Taoiseach accept that there needs to be a step change in the Government's approach? Has he engaged with the Commission for Regulation of Utilities on this worsening crisis? Has he directed the Minister, Deputy Eamon Ryan, to get the heads of energy companies around the table to devise solutions for hard-pressed customers? Without Government action, things will get worse for families that are just keeping their heads above water. This is a vicious cycle. It is never-ending. It is no way for our people to live or build a future. The Taoiseach's lack of urgency cannot continue. It is now time for Government to do its job and protect workers and families from being fleeced.

In her opening remarks, the Deputy made reference to the situation with regard to housing and health before raising the issue of the cost of living. Without question, this Government has embarked on a step change in respect of housing through its Housing for All strategy. There will be investment of more than €4 billion per annum from the State alone in addition to private sector investment. The largest social housing programme ever to be concluded will be under way in 2022. There is affordable housing, the Land Development Agency legislation has been passed and so on. This will make a difference. There have already been over 30,000 housing commencements to the end of 2021, with a higher outcomes expected for 2022. We are making progress on housing but I acknowledge that there is a long way to go and that there are significant challenges.

On health, the Deputy completely omitted any reference to the fact that our health service has stood up to a one in 100 years event, the Covid-19 pandemic. This posed a great challenge to our health service. We resourced our health service to an extraordinary degree to combat the challenges presented by Covid-19. With regard to mortality and levels of illness, we actually did better than most countries across Europe. The bottom line is that, without question, the pandemic had an impact on waiting lists.

With regard to the cost of living, níl aon amhras ach go bhfuil an costas maireachtála ag dul in airde. Níl an tír seo freagrach as sin. Is rud é atá ag tarlú ar fud an domhain, mar is eol don Teachta. Tá dlúthbhaint idir sin agus an polasaí atá ag an Rúis ó thaobh praghsanna gáis agus dóthain gáis a chur ar fáil. Is é sin bun agus barr na faidhbe maidir leis an gcostas maireachtála atá ann ar fud an domhain faoi láthair. That is to say, inflation has picked up across the world. In her analysis, the Deputy ignored the global impact. Almost all of these inflationary cycle issues have been occurring across the globe. As the Deputy will know, Europe receives the majority of its gas supply from Russia. Lower flows of gas from that country have been a major factor. The current geopolitical tensions with regard to Ukraine could exacerbate that and make things even worse if there was to be any military incursion, with all of the consequences that would flow from that.

In addition to that, there were supply chain issues relating to Covid. These global supply chain issues also had an impact in increasing inflation. The Government responded in the budget through the €5 increase in the fuel allowance and the good social protection initiatives we introduced. We also announced a tax package worth about €520 million to assist people with their disposable income. The welfare package was worth approximately €558 million. This year, 1.8 million working families will benefit from the tax package alone. I note Sinn Féin's alternative budget did not include indexation of income tax bands and credits, which would have meant an increase in tax for workers across the board.

With regard to another intervention we made, extending GP cover, the Vincentian model shows that this can often be very impactful for those on minimum incomes and for the disposable incomes of people more generally. We introduced some targeted measures with regard to the social protection approach which will help people on low incomes in particular.

The European Central Bank has said that this inflationary cycle is related to the pandemic. That remains to be seen.

The Government took a decision today, however, in respect of the legislation that will be required to give everyone a €100-plus deduction from their electricity bills, which will help in addition to budgetary measures we took.

The truth is that no step change has been effected by the Taoiseach's Government.

There has.

What we have seen is more of the same. The proof of that is that house prices are up 14% and rents are up 8%. The truth is that the Government has continued with the same approach. Rather hearing an answer from the Taoiseach, he reached for excuses. I am well aware of the international context and of the inflationary pressures. By the way, the Governor of the Central Bank of Ireland has made it clear that this is not a momentary phenomenon. This is going to be with us for the next year. I want the Taoiseach to listen to people. I want him to listen to the experiences of families who are telling us and him that they are struggling to keep the lights on and to keep up with their bills and other costs. I want him to make clear what his Government proposes to do about that. They are introducing the €100 relief for energy costs, but that comes very late and, in truth, it will not be sufficient. I want to know what the Taoiseach will do in addition. I have suggested that he and the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, should act to ensure that there are solutions for customers and families struggling today.

We do listen to people. Today, for example, the Government approved well over €100 million in expenditure on O'Devaney Gardens, where well over 1,000 houses will be provided.

At what price?

Yes, the Deputy asks at what price, because it is always more of the same from Sinn Féin which is going to oppose it anyway.

We just want people to be able to afford houses.

The party has opposed more than 6,000 houses that families could have done with over the past number of years.

At what price?

What struck me this morning was-----

Deputy Ó Broin, please.

-----regarding O'Devaney Gardens-----

At what price?

-----that the latest iteration of that project was in 2015. It actually goes all the way back to 2008 and successive city councils and an inability to vote for it-----

They are not affordable.

Deputies, please.

-----and an inability to support the Oscar Traynor Road project.

€400,000 for a family home.

There is a housing crisis there, and we need to get houses built.

An affordable housing crisis, created by you.

The attitude of Deputy Ó Broin and his colleagues is to go on and on and to vote against that model and vote against the next model.

We are against unaffordability for working people.

Turning to the cost of living-----

Energy costs.

-----this is a key issue. We acknowledge and know that. We have taken steps in the budget, with the tax package and with the legislation today that will facilitate some degree of reduction. We will do more as well, however.

I thank the Taoiseach. The time is up.

We will engage with the social partners on ways of trying to protect people-----

We have the highest prices in the world.

-----to help people-----

Fleecing people.

-----and trying to cushion them over the next 12 months with a view to weathering this significant increase in prices occasioned by a global situation, as the Deputy well knows, particularly by the behaviour and approach of Russia in restricting gas supplies to the West.

The Taoiseach is not living in the real world.

Housing costs went up 12% under a Sinn Féin Minister in the North.

Well done. Look after Donegal now.

That is what happened under a Sinn Féin Minister in Northern Ireland.

Please, Deputies, can we behave? I call Deputy Kelly.

Now we are back.

I honestly do not think that the Taoiseach is living in the real world. We all know international factors are at play, but that is not the whole story. It is the Taoiseach's job to deal with them international factors impacting families and workers in this country and with what is real. The €113.50 credit that has been announced is a joke. It is tokenistic and is actually insulting. Inflation is at a 20-year high of 5.5%. Let that figure settle in, and its impact, especially the impact it will have over the next four to five months.

The Governor of the Central Bank of Ireland yesterday described recent energy price increases as "spectacular". I do not think the word was chosen lightly. The December consumer price index, CPI, was published last week, and over the past 12 months electricity prices have gone up 22%, gas price by 30% and home heating oil by 50%. This will add €1,300, or more, to bills annually. How many families can honestly absorb that?

Those higher prices are now also coming through in food bills.

The prices of bread, milk and butter have gone up by 10% to 30%. These are household staples. Even pasta has gone up 5% in the past two months. The day-to-day essentials that families rely on to feed themselves are also going up. The Irish Times estimated yesterday that if a weekly shop climbed by €15, it would cost households €780 more a year. Add on to that diesel prices and the cost of petrol. This time last year a litre of diesel was €1.20; now it is €1.60. Adding all of those together, we have a range of €3,000 to €4,000 extra for families. How many families can absorb that? This is the question the Taoiseach has to answer.

There is no point in coming back to me and saying it is all international factors. I accept that a percentage of it is down to international factors. The Taoiseach still has to deal with it, even if it is. It is not an excuse we want; it is solutions. What the Taoiseach has proposed is not going to have an impact. The Government proposal on flexible working, which we do not believe is flexible enough, will ensure more people are commuting, spending on fuel and having to move into cities again. This will lead to an increase in rents and the Government refuses to bring in a rent freeze. It is not all about international factors. They are a component but ultimately the people of Ireland need solutions from the Government one way or the other. What are the Taoiseach's solutions? Will he look at a rent freeze? For some time we have pushed for a derogation on VAT. The Taoiseach should not tell me the Government cannot do it because I know it can.

On the VAT issue, if we reduced VAT temporarily for a couple of months, ultimately we would create higher electricity prices because Ireland would lose its special derogation from the European Union and the rate of VAT on energy products in the new year would rise from 13.5% at present to the standard rate of 23%. I have explained that to the House on a number of occasions but the Opposition keeps coming back suggesting things that cannot happen or that, if they did happen, would be damaging to the country.

Let us go back to the Deputy's broader point. I accept that he acknowledges the international factors. The budget did target low-income families in terms of a range of measures. There was not just the fuel allowance but also the increases in the qualified child payment, the living alone allowance and the income threshold for the working family payment. The total cost of those targeted interventions was approximately €146 million. Some €520 million was the cost of income tax changes and reductions, again to give families some degree of disposable income. Today's measure will help 2.1 million households in respect of a €100-plus reduction on electricity bills. As I said earlier, we have also taken measures on childcare and in respect of the extension of the GP visit card to children up to eight years of age. That will really help families in terms of disposable income.

I accept absolutely the Deputy's right to come in and seek further measures. However, we have to avoid a wages spiral that would just create a further inflationary spiral. We have to think intelligently as a country as to how we protect families and people in terms of the daily necessities of life-----

The Government was not worrying about a wage spiral when it appointing a Secretary General in the Department of Health.

What about the Minister for Agriculture, Food and the Marine and the wages spiral?

I am talking to Deputy Kelly. Deputy Carthy is not a leader yet. He should let me talk to Deputy Kelly. We have to engage with the social partners as well and work our way through this, and take further measures, if required, at the appropriate time to deal with what is happening and what is likely to happen for the remainder of 2022. However, we must do so in a way that does not just add fuel to the inflationary cycle, which is in no one's interest and would only result in putting people through more hardship.

Initially the ECB was of a view that this international increase in inflation was temporary. I always said we would have to keep that under review. It seems to me it could be a bit longer than we might have anticipated. We are going to have to adjust, as we have adjusted so far in terms of budgetary policy.

However, we need to think our way through this in an intelligent way and not just reduce it to a sort of political sparring for the sake of it.

Speaking with deep honesty, I do not think the Taoiseach gets it. He has to deal with what I have shown, namely, an increase of €3,000 to €4,000. That is not debatable, but what he is proposing is meagre and will not deal with it. People watching this debate will suffer.

Hear, hear.

The Government has to deal with rent. It can be done, so do not tell me it cannot. I did it. Rent freezes can be introduced. The Government also has to deal with VAT. The Taoiseach keeps repeating that the Government cannot apply for a derogation but it can apply for a one-off derogation. Of course it can.

The Taoiseach spoke about inflation. Workers have every right to look for pay increases to deal with inflation because the Government will not deal with it. He cannot sit there and say that they should not. They will, they can and they must because the Government will not deal with it. They will need those wages to pay for these cost increases. The Government does not have the will. It needs to rethink that because the people who are watching and who will be getting bills this week, next week and the weeks and months after are looking to the Government. If it does not come up with measures, they will suffer because this issue is not going away anytime soon. It will go on for a significant time.

I am not clear about what the Deputy did on rent because rent kept increasing after he left office. I think we are ultimately dealing with a supply issue in housing. Chasing after an inflationary cycle has never worked. It is not a sustainable way of doing it.

Deal with it, so.

Yes, we do need to protect workers, but we have to do that working with the social partners in an intelligent way. The Government will be up for that in terms of how to do that, but it has to be done in a manner that protects disposable incomes and enables people to be in a position to access the necessities of life in terms of food, shelter, fuel and all the basics. That is why in the health area this year in the budget we increased eligibility for GP care from 6 years of age to 7. That means a lot to families. The drugs payment scheme, DPS, threshold is going from €114 down to €100. There is free contraception for particular cohorts. Children's hospital charges are being reduced. There are mechanisms by which we can help people in terms of their everyday expenses, but we also had a tax package in the last budget of about €520 million. We also did social protection measures that were targeted. We look at the Vincentian model, for example, as a mechanism. There are ideas there that could help us to target whatever resources we have in the right direction.