Táimid ag foghlaim inniu go bhfuil ardú 6.7% tagtha ar phraghsanna le bliain anuas agus go bhfuil praghsanna fuinnimh ag dul suas níos mó, thart ar 47%. Tá níos mó ná dúbailt tagtha ar chostais ola théimh le bliain anuas. Tá na hoibrithe agus teaghlaigh ar fud an Stáit ag fulaingt mar gheall ar chostais mhaireachtála. Caithfidh an Rialtas dul i ngleic leis seo. Ba chóir go mbeadh sé ag tógáil an ualaigh throm seo atá ar theaghlaigh ach ní hé sin atá beartaithe. Is é an rud atá beartaithe ag an Rialtas seo ná go mbeidh praghsanna ag ardú níos mó, mar gheall ar cháin charbóin a ghearradh ar an bhfuinneamh seo, taobh istigh de chúpla seachtain. Caithfear stop a chur leis seo.

Yesterday, my party leader pressed the Taoiseach on the need for further measures in the form of an emergency budget to tackle the cost-of-living crisis. We have been consistent in that call for some time. It would appear that the Tánaiste's Government has turned its face against this at a time when workers and families are really struggling. This morning's consumer price index shows that prices have risen by more than 6.7% in the past year, with energy prices increasing by 47%. The price of home heating oil has gone up by a staggering 127%. It is more than double. The cost-of-living crisis demands an urgent and comprehensive response from Government.

We acknowledge that households cannot be fully insulated from all of the prices increases we are seeing, but we know that Government can and must do more. That is what we heard from the Economic and Social Research Institute, ESRI, last month. It is what we heard from the Central Bank just yesterday, when it said there is headroom for Government to act. Instead, it remains intent on pushing ahead with carbon tax increases, hikes next month and increasing energy prices, when efforts should be focused on reducing them.

Three weeks ago, the Minister for Finance categorically ruled out any further measures to support workers and families until the October budget. At that time, I said that he was out of touch with the realities households were facing and that his position lacked credibility. Now, it seems that Government is changing its position. At least, that is what is reported from utterances from the Tánaiste and from the Taoiseach last night that the carbon tax increases will be offset with other measures, despite the Minister for Finance having ruled this out.

However, we have seen no details. The carbon tax hike should not go ahead. Government should not push up the price of home heating oil, which has already more than doubled in the past year, or of gas. Efforts should be made to reduce the price of home heating oil and of other fuels, not to increase it, but we need a more comprehensive package.

We have called for a range of effective measures that would be targeted at workers and families. We have called for the Government to work with the Commission, as far back as November, to reduce the VAT on domestic energy bills to zero for a period of time. The Tánaiste and his Government rejected the proposal at the time but they have now changed their position and only began this work a couple of weeks ago. However, his Government is still ruling out reducing the VAT to zero on energy bills, even if the Commission gives it the flexibility to do so.

We have called on Government to extend the fuel allowance by six weeks. We have called for social welfare rates to be increased, in line with inflation, in order that the most vulnerable in our society will not experience that sharp drop in living standards. Will the Tánaiste consider that proposal?

We have called on Government to remove excise duty on home heating oil, as families struggle with a cost that has risen by more than double in the past year to try to keep themselves, their family and their children, warm in their homes. We have also called for cost-of-living cash payments directed at low- and middle-income earners and supports for those who struggle with unaffordable rents.

There is a need for an emergency budget. That need is clear and it is now. Will Government change course? Will it scrap the carbon tax increase it plans in the coming three weeks? Will it commit to an emergency budget in response to the cost-of-living crisis?

As the House will be aware, the Central Statistics Office, CSO, figures that came out today indicate that the annual inflation rate is now at 6.9%. It is estimated it will rise to approximately 8% later in the year, before falling off towards the end of the year and into next year. That will come as no surprise to anyone in this House, nor will it come as any surprise to people who have been experiencing the price increases in their everyday lives.

What the CSO is confirming today is what people have been experiencing over the past three to six months. We know that from the increase in the price at the pumps. We know it from the increase people are seeing in their utility bills. We know it from the increase people are seeing in their grocery bills. It is impacting on family and household budgets. It is also impacting on the cost of doing business. Government acknowledges that.

That is why we have acted already to help ease the burden of rising prices. The Deputy acknowledged in his contribution that no government can fully offset the cost of rising prices but we can offset it substantially. That is what Government has done through a tax and welfare package in the last budget to increase the pension and welfare rates and reduce income taxes for people on middle incomes, something the Deputy's party has opposed and continues to oppose.

People now see the €200 coming off their electricity bill. That has started to take effect. There has been a €125 fuel allowance increase for those most vulnerable houses because it is important we target what we are doing towards those who need it the most. We have had the biggest cut in excise duty ever with 20 cent taken off petrol and 15 cent taken off diesel, which more than reversed the carbon tax increases that occurred in recent years on petrol and diesel, as well as special measures for hauliers, tillage farmers and others in society.

There has already been a substantial response from Government to help people with the burden of rising costs, worth between €1 billion and €2 billion, depending on how one calculates it. That is not small and is much greater than has been done by other governments throughout Europe. However, we acknowledge that more needs to be done, given that prices continue to rise. We do not want to chase every price increase with an action that is not sustainable or credible. We want to look at it in the round, both in the next budget and before it.

With regard to the carbon tax increase due in May, it is important to say that does not apply to petrol, diesel or electricity. It applies to home heating oil and will add approximately €20 to the cost of filling a full tank with home heating oil and it will affect gas. It will increase the cost of gas by approximately €1.50 per month. If one does not have €20, it is a lot of money.

If one does not have €1.50, it is a lot of money. We will bring in measures before May to offset that increase. It is important to be honest about the scale of that increase. From some of the commentary, one would think that carbon tax is somehow responsible for all, most or even much of the increases people are experiencing. That is not the case. This will add about €20 to the cost of a tank of oil to heat a house and about €1.50 to gas bills, and we will offset that.

Regarding the Deputy's proposed solution of reducing VAT, which he has asked us to consider, we will of course consider that approach. Currently, however, that is not possible. We had an engagement with the European Commission. The Taoiseach and the Minister for Finance have had it. We already have a discretionary VAT rate in Ireland. We have one of the lowest VAT rates on energy in Europe. We are already down to the lowest possible rate in respect of excise on petrol and diesel. If we were to try to do what the Deputy is proposing now, it would not be possible because it is not lawful or legal. If we were to reduce the VAT rate to 12%, if that were possible, we would then have to put it back up to 23% because of the way the VAT directive is structured. In opposition, Deputies have the convenience of making proposals and promises that cannot be implemented. What the Deputy is proposing now, at least, cannot be implemented.

What that sums up is that the Tánaiste, as leader of his party, is completely out of touch. We at least have a bit of confidence that some of his backbenchers understand some of the pressures families are under. The proposal we put to him back in November was to engage with the European Commission to get the flexibility to reduce the VAT rate to 0%. The Tánaiste's Government and Minister of Finance did nothing. This issue was first raised when a letter was sent to the European Commission on 10 March. The Government sat on its hands as prices continued to increase and put pressure on families. This Government simply did not, and does not, get what is happening out there. We have seen the cost of home heating oil increase by 127% in the last year. Yet the plan this Government has regarding the price of home heating oil is to increase it by another €20 on 1 May. That is simply madness, and it is driving people to the breaking point.

We put forward not just one or two measures to the Government. We need a suite of measures to deal with the issues raised by the cost-of-living crisis. The Tánaiste's Government has allowed rents to go out of control. We need targeted measures which will reduce costs for those renting. Social welfare recipients, who are on fixed incomes, have seen an increase of just over 2% in those rates, while inflation has increased by 6.7%. Will the Tánaiste commit to introducing a social welfare package? We need a mini-budget and a Government that gets it and is willing to respond swiftly to these pressures.

No matter what response I gave to Deputy Doherty just now, his answer was going to be what he said. It is his catch cry-----

Those are the facts.

-----and his standard line. No matter what anybody says to him, he is going to say they are out of touch and do not get it. Of course we get it. As I speak, €200 is coming off people's electricity bills because we understand the burden people face from increased energy costs, albeit ones caused by factors outside of our control. This is why we have had the biggest cut in excise duties on petrol and diesel ever-----

Why is the Government putting up the price of home heating oil?

-----with 20 cent taken off petrol and 15 cent taken off diesel.

Deputies, please.

It is why we increased the fuel allowance. It is why we had a pension increase in the budget.

It is why the Government is increasing the price of home heating oil and gas.

It is why we reduced income taxes for middle-income people, despite opposition from the Deputy's party. That we have acted in that way is evidence of the fact we get it. More than €1 billion is being used to reduce the cost of living for people, but we are not in a position to chase every increase and to fully compensate people for every increase.

Stop introducing-----

We must be honest about this aspect.

The Government is bringing in the increases.

Regarding engagement with the European Commission, there has been ongoing engagement on this matter by the Taoiseach and by the Minister for Finance.

On 10 March.

The reality is that the proposal the Deputy is and has been making-----

The Government sat on its hands.

-----is in breach of the European VAT directive and the European excise directive.

That is not true.

Deputy Doherty, please.

The Tánaiste is misleading the Dáil.

The reason Deputy Doherty cannot let me finish-----

Please, Deputy Doherty, let the Tánaiste speak.

The reason he will not let me speak and he continues to try to shout me down is that he does not want the Irish people to know-----

The time is up.

-----what a fake he is and that he keeps making proposals he knows cannot be implemented. That shows me he does not get it-----

Check the record. The Tánaiste is a disgrace. Check the record. He is misleading the Dáil.

-----and he will not listen to what I have to say because he does not want people to get him.

Check the record. We asked the Government to engage with the European Commission, but it refused to do so for months as families were under pressure.

Deputy Doherty, please, resume your seat.

Check the record and stop misleading the Dáil.

Resume your seat, Deputy Doherty, please. Please treat the House with some respect and adhere to-----

I will not allow the Tánaiste to mislead the Dáil-----

Please, treat the House with some respect. I call Deputy Bacik.