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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Cost of living and fiscal surplus

Summary

Deputy Doherty criticised the Government for ruling out a cost-of-living package despite a large projected surplus. The Minister argued that one-off supports have been provided and the focus should be on permanent cost reductions.

This month the Department of Finance published its economic projections. The State will run a combined surplus this year and next of €15 billion. At the same time, the Government tells workers and families they are on their own and there will be no cost-of-living package in this year's budget. Does the Government simply not get it or is it ignoring the plight of ordinary people who are under serious pressure due to the cost of living? We have double digit rent increases. We have the highest electricity prices in Europe. The cost of insurance is going through the roof - up 9%. The cost of groceries is going up. The cost of petrol and diesel will go up again in September courtesy of the Government.

The Government also put up the price of gas and home heating oil just last week. That is why 50% of families do not have enough to get them through the next three months if something goes wrong. It is why one in eight single parents cannot put a roast dinner on the table, according to the CSO. By any measure, the Government is failing to get to grips with people's real needs here and now. It has ruled out a cost-of-living package. The Government needs to come to its senses and commit to a cost-of-living package to alleviate the pressure on so many families right across this State.

Comment on this
Helen McEntee Minister for Education and Youth Fine Gael

As a result of the actions of this Government, and because we have not spent every single penny we have, it has meant that over the years when we have had significant challenges - be it Covid-19 or the war in Ukraine and the implications these have had in terms of the cost of living - we have had money to give back to people. In last year's budget alone, there were €2.2 billion worth of one-off measures. What people are saying very clearly is that they want longer term measures. They want to make sure that the overall costs are permanently reduced for them. That is where our focus needs to be. We have to use the money we have because of the surplus and the fact that we focused on our economy, making sure we have enterprise here that can create the tax base that creates this funding to be spent by everybody.

This is why we are putting in place permanent measures. We will have free schoolbooks for 1 million children this year. That is a saving for families. We have hot school meals for all primary schools, which, again, is a saving for families. Social welfare payments have increased year on year. We are providing a 9% permanent reduction in VAT for businesses. We know the knock-on effect this has for people who are out socialising. In circumstances where someone has lost their job, the jobseeker's pay-related benefit that has been introduced reflects more what their wages would have been. We have had more permanent changes, particularly when you focus on the huge amount of investment that is going into retrofitting homes and supporting those who are most at risk. There is no point continuing to provide one-off measures. What people want are permanent changes, and that is what we are absolutely focused on.

Comment on this