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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Fuel taxes and mini-budget

Summary

Deputy O'Donoghue attacks fuel taxes, argues the Government is taking in far more than it is returning, and calls for immediate action on energy and building costs. The Taoiseach replies that revenue funds public services, says the Ukraine war is a major driver of prices, and promises the next budget will include measures to ease pressure.

The Rural Independent Group's call for a mini-budget was voted down by Government. The Taoiseach said a few minutes ago that the Ukraine war is the issue when it comes to energy costs in this country. He also said that the Government had provided €2.6 billion to counteract that. He never said that the Government took €6 billion in tax on fuel alone in one year. In 2020, it took in €2 billion and now it is taking in €6 billion and is returning €2.6 billion to the people of Ireland. The Government is here to protect the people of the here and now.

It is here to protect the economy, which also protects the people. The Taoiseach has stated that there are 2.5 million people working in this country. There are 2 million vehicles in this country and 99% of them run on fossil fuels. Those vehicles help to run the economy by helping people to go to work and thereby feed their families. The Government's answer in that regard is to take 49% of the cost of fuel in taxation. That is not protecting the people of this country.

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It is robbery.

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It is robbing the people of this country. The Government's figures are now coming out and showing that is the case. By delaying the budget until October, the Government will take another €2 billion in tax on fuel alone. That is only with regard to fuel. What about coal and all the other energies we must pay for? What about everything? What about the clothes on our backs? The Government is taking taxes like they have never been taken before. The Government was given a toolbox by the EU in November but it has done nothing. On 6 April, the EU allowed member states to reduce the VAT rate to 5%. The Government has done nothing.

Why does the Government not take a leaf out of Malta's book? Diesel in Malta costs €1.21 per litre today and petrol costs €1.36. We are paying €2.15 per litre for petrol and our Government takes 49% of that in tax. Why do we not go back to 2020 and put in place the cap for which I asked? Last year I asked the Government to cap taxes. That would have given 40 cent per litre back to every motorist in the country. As the Taoiseach said, 2 million people in this country have vehicles and 2.5 million people are working.

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The Deputy said the Government takes taxes but we do not take them. The Government provides services to the people of Ireland through raising revenue and spending it. We need a tax base to fund education, housing, health, childcare services and child protection services and the development of transport infrastructure. We need revenue to do those things. Every stable democracy needs a stable revenue base.

Across the European Union, a broad VAT directive sets out the bands for the various VAT rates that can be deployed and so forth. We have to work within those parameters and we willingly signed up to that. It places limits on how far VAT can be reduced as we adhere to the rates on which we entered into agreement. We have reduced VAT on gas and electricity. We have also reduced excise in the amount of €2.4 million as a result of measures we have taken.

I understand that Malta has one of the highest levels of borrowing of the EU 27. It stood at 11% of GDP in 2021. We also have debt levels. The idea that €6 billion of tax revenue can be eliminated in simply not a runner. It cannot be done anyway, but it is not a runner if the proposal is thought through. The Deputy looks at this issue through a one-dimensional lens. He has not looked at the other side of the matter, namely, the allocation of that funding. For example, €4 billion per year has been allocated for the building of social and affordable housing and for cost-rental accommodation. There must be a revenue base to allow for that and, thankfully, we have a diverse revenue base. The more important point is that in the context of the next budget, we will be in a position to do things that can alleviate the pressure on people, families and, in particular, children. We have already allocated substantial resources since the most recent budget to alleviate those pressures across the board. I have gone through the list of measures we have taken in respect of transport costs and so on. There have also been schemes for hauliers, tillage and hospitality.

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The Taoiseach has 20 seconds on the clock. He could not even fill out what he had to say back but he managed to use extra time talking back to everyone else. That means he does not have a clue what he is talking about. I will tell him what he can waste his minute on.

The Taoiseach talked about protecting the building industry. At the moment, we have a building crisis. What is causing the building crisis? It is all to do with fossil fuels, transport costs and all energy into insulation and oil-based products. People are no longer building. Check it out. Building is now slowing down. We have a housing crisis and building slows down. Sums of €144,000 are being given to developers for apartments. That is what the Government is giving - €144,000. We have people now that are stopping building. We have builders who are saying it is no longer affordable to build houses for their people. The Government could do it. The Taoiseach said the Government put €4 billion into housing. That is €4 billion for the people, and we have to make them live here now. The Taoiseach mentioned Malta. Malta has taken the position of protecting its people, even if it has higher debt. At least they are protected for the here and now. Who will protect the Taoiseach in the future?

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His European masters.

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First, there were approximately 33,000 housing commencements from April to April. There are clearly challenges facing housing because of commodity prices going up and inflation generally. The Ukraine war-----

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Deputy Mattie McGrath raises his eyebrows every time I mention Ukraine-----

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Ever before the war there was a spiral in prices. Everyone knows that.

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The point I am making to Deputy O'Donoghue is that the Ukraine war does matter, has mattered, and is the driving factor in all of this. It could get worse in terms of energy. It could get worse because of the Russian strategy to stop the flow of gas to Germany and other major customers. That will have an impact.

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We were going to go bust with Brexit and then-----

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Thankfully, we are not as dependent on Russian gas and oil for our energy supplies. More generally, if there is a contraction in supply globally, it will affect everybody at the end of the day in terms of pricing and so on. I must put it to Deputy O'Donoghue that the next budget will be about expenditure, tax and a package of measures to alleviate the pressures on people.

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The time is up.

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Parallel with that we have a public service pay process in place. Every extra per cent of that context is a substantial proportion of expenditure also. There are significant issues across the board that have to be met. I think I lost 20 seconds in the first round or rather, I did not avail of them.

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