I raise the issue of the ever-increasing cost of living that the Irish people are enduring. We are now, thankfully, starting to emerge from the Covid-19 pandemic and society and workplaces are reopening. The past two years have been very tough for everybody. Many people lost their jobs. Others saw their businesses close. Many also lost friends and family members to the dreadful pandemic. Now, just as we are starting to emerge from lockdown, the people are faced with new challenges.

The cost of living, as the Taoiseach knows, is rising at an alarming rate. The rising costs are affecting all businesses in the country, large and small. I have spoken to many business owners about these challenges. A local joinery company explained to me that this time last year, its core product, a sheet material, was costing approximately €28 per sheet. Today, the cost is over €70 for the same sheet. To put that in context, the company would purchase an average of 50 of those sheets per week. This means that the cost has risen by more than €100,000 in one year. On top of that, the company's diesel bill has increased by more than €250 per week. The core costs for that business have increased by over €120,000 in the past year. Another business owner explained to me that their electricity bill has risen from €25,000 per month to €45,000 per month. These two examples are just the tip of the iceberg. Every business in the country is faced with these challenges.

In the Border region, particularly around my home town of Dundalk, local businesses are facing even greater challenges. It is becoming clear that the introduction of minimum alcohol pricing is going to have a devastating effect on local businesses in towns such as Dundalk. I support minimum unit pricing for alcohol. However, I stated all along that we must introduce it at the same time it is introduced in the North. People are travelling in their thousands to buy cheap alcohol in the North. This is going to be a massive drain on the local economy because, as the Taoiseach knows, when such people travel to the North to purchase cheap alcohol, they also buy other items, such as groceries, coffee or clothes.

The same is happening with regard to heating fuels such as coal. Coal is nearly half the price in the North that it is here so people are travelling there to buy it. Businesses along the Border can no longer compete with their Northern counterparts. The introduction of the carbon tax at this stage is not helping.

I will also speak to the cost of utility bills. People in Ireland like to do budgets but some utility companies are only billing people twice a year. People have arranged for a standing order of €130 per month, or whatever it is, and all of a sudden, four or five months down the road, they are getting bills of €1,000, €1,500 or €2,000. This has to stop. We must start pushing the utility companies to do a minimum of six meter readings per year.

People in the Border area are looking for help. I appreciate the €200 payment towards the cost of electricity bills. However, that is only a small item. I would appreciate a reply.

I thank the Deputy for raising the topical issue of the cost of living. In the earlier part of his contribution, the Deputy referred to the impact that rising costs have had on a particular company in his county. I acknowledge that. Inflation has risen significantly around the world in recent months, mainly driven by higher energy prices. Because of the Ukraine-Russia war, costs are likely to go up even more in the short term.

Inflation in Ireland was 5.5% in December and eased to 5% in January. The cost of electricity, gas, home-heating oil, petrol, diesel, motor cars and rents were the main contributors to inflation. Some food products, including bread, pasta, soft drinks and coffee, have also risen markedly in price. In 2021, the country spent €6.2 billion on imported fuels compared with €3.4 billion in 2020. That illustrates the scale of the increase.

It was an increase of €2.8 billion, which reflects the higher prices on the international market. We spent an additional €1.5 billion on imported oil and €1 billion on imported gas last year. A year ago, a barrel of oil was $64 on the international market; today, it costs $110. Oil prices have risen by $14 a barrel over the past week alone. Natural gas costs 400p a therm today on international markets, compared with 40p a therm last March. Gas prices have soared by 220p a therm over the past week. These are enormous increases in a very short period.

The most recent Central Statistics Office, CSO, data on wages show average hourly earnings in quarter 4 of 2021 were up by about 2.6% from a year earlier and up 8.2% from quarter 4 of 2019. As I said earlier, if we look at the United Kingdom and the US, inflation has been at multi-decade highs recently. Euro area inflation has gone up again, with the figures today showing it is at about 5.8%, if I am not mistaken.

We are in a very difficult situation regarding the costs of living. The Government has responded. Since coming into office, we have raised the fuel allowance from approximately €630 to €1,039. We have been in office for approximately one year and seven months. If we include the €200 electricity payment, support for those on low incomes has now almost doubled to €1,239. That will help to cushion the blow for people on low incomes. In addition, we have taken measures, as the Deputy acknowledged, in respect of the drug payment schemes, the front-loading of the working family payment and the reduction in public transport fares from the end of April, which will benefit 800,000 people.

The minimum unit pricing of alcohol came into effect on 4 January. I know the Deputy's heart is in the right place in respect of this matter and I know the point he is making. The policy is designed to reduce alcohol consumption.

I thank the Taoiseach.

On 22 February, the Northern Ireland Minister of Health, Robin Swann, launched a public consultation on the introduction of minimum unit pricing there, with a closing date of 17 May.

The time is up.

He said he has been greatly encouraged by the positive evidence coming out about the introduction of minimum unit pricing in other jurisdictions and believes its introduction in Northern Ireland has the potential to reduce the harms relating to alcohol consumption. It is a public health measure designed to reduce harms arising out of alcohol consumption.

I welcome the €200 payment towards energy bills but there is no incentive for providers to cut their costs. That is what is annoying me and it is why I use the word "profiteering". Every time we open the newspapers, we see that the banks and companies like the ESB are making many millions in profits. Some businesses are even saying they are making profits of 40% or 50%. We need these businesses to help us and we must find some kind of incentive in this regard. I repeat that many people will really welcome the €200. However, I reiterate that many companies are engaged in profiteering. I worked in an electrical wholesale business for 25 years and I cannot understand how a sheet of timber could cost €28 this time last year and now, all of a sudden, the price has increased to €70. There is something seriously wrong with that.

We have a culture in Ireland whereby people want to pay their bills. However, utility companies are raising prices twice a year. A widow came to me last week whose electricity bill had gone up from €130 a month to €400 or €500. The simple reason for this was that the company had made a mistake in its reading. When she telephoned the company, the response was, "Oh, sorry, we made a mistake." We must help people at this time. The €200 is good but we must give some kind of incentive to the companies to help the people who need it.

I fully agree with the Deputy that the utility companies have to respond in a proper way to companies and households that are in difficulty. There are various mechanisms in place whereby households that are in arrears or are in difficulty in respect of paying bills and so forth can be switched off. The utility companies have developed policies in that respect. Likewise, in terms of the utility companies the Deputy identified, meaningful and flexible approaches and responses should be developed by them in the current situation where, as I have outlined, international market prices for oil and gas have rocketed in the past 12 months and are set to go up again in the short term.

In the context of the broader issues of supply and demand, there has been an issue as economies were recovering from the Covid-19 pandemic that demand far outstripped supply and costs went up accordingly for many products. There was some evidence that was evening out in the past while, but it was a significant factor.

Go raibh maith agat, Taoiseach. Tá an t-am caite.

In Ireland in particular, as in other European countries, a lot of expenditure has been allocated by Government to cushion the blows and support businesses during the Covid crisis and as we emerge from it.