Windfall tax on energy profits
Deputy Bacik argued for a windfall tax on large energy company profits to help fund climate transition and cost-of-living supports. The Minister said the profits were eye-watering, noted EU-level discussion, and defended targeted household supports.
It is more than 12 months since the Labour Party brought a motion to this House calling for a windfall tax on the profits of energy companies, which was back in January 2022.
In the year since, we have seen Shell plc record a record profit of $40 billion and during the same year BP plc's profits have doubled to €28 billion, even as it scaled back its albeit modest climate action plans. During that year a windfall tax could have recouped money from those profits to assist with the shift to a green economy across the EU and to ease the immense burden of the cost of living and rising energy bills for so many households. Yet, while the planet burns, we are seeing oil magnates and corporates like BP and Shell just cashing in.
I raised this yesterday with the Taoiseach on the Order of Business and asked him when we would see the introduction of a windfall tax by Government and he indicated it was under consideration. I am asking the Minister now when we will see that debate on the introduction of the necessary windfall tax on the profits of energy companies, particularly as families and households are now grappling with severe hardship and poverty due to rising energy bills.
Comment on this
I thank Deputy Bacik. There is no question but that some of the profits we have seen published recently by energy companies, including Shell and BP, are eye-watering. The Taoiseach responded yesterday and it is a matter that will be discussed at European level also. As a State, we have brought in very targeted measures to help households such as the energy tax credit. There is one further payment due to help people through the winter. We were correct in our approach to ensure those supports were targeted as part of an overall cost-of-living package.
We had many people catastrophising the situation, although not Deputy Bacik, talking about people being cut off and bills being run up, but the State has stepped in in a very targeted way. We will certainly keep the Deputy informed of progress in regard to her question and I believe it will be matter for discussion at EU level also.