Cost-of-living supports
Mary Lou McDonald criticises the Government for ruling out further cost-of-living supports, citing rising rents, fuel costs, taxes and fees. The Taoiseach says substantial supports will be provided in the budget and defends investment in infrastructure and the economy.
Before I begin, I wish to congratulate our undisputed world champion, Katie Taylor, on an incredible victory in Madison Square Garden on Saturday morning.
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Katie, as we know, has fought all over the world. She has walked many times into the lion's den. I know lots of people are anticipating the mother and father of all homecomings and a fight, maybe, in Croke Park.
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The Taoiseach has comprehensively ruled out providing a cost-of-living package in October's budget. The media today is full of reports that he is set to double down on the removal of support payments for struggling households. At a time when living costs are through the roof and people have been hit by skyrocketing prices from every direction, the Government proposes to abandon households and provide them with no help. The promises made during the election are disappearing like snow off a ditch.
People cannot believe their ears when they hear the Taoiseach talk as if the sky-high living costs they experience every day are a thing of the past. Extortionate prices are not past tense. People are being fleeced today. They are being fleeced when they open their electricity or gas bills, get to the checkout with the weekly shop, go to fill the car or go to buy basic toiletries like toothpaste or shampoo. The out-of-control cost of living is making it so hard for working people to keep their heads above water as we speak. For the Taoiseach to tell households that he is not going to help them and to almost boast that he is determined not to help shows that he really does not understand the pressure people are under. People are not looking for lip service or sympathy from Government; they are looking for support and fair play.
They are not getting a whole lot of fairness right now. For one thing, households in Ireland are paying 30% more on their electricity bills each year than the EU average. That is nearly €350 more. The ESRI says that it is difficult to explain why electricity prices here are so far above those in other countries. People are taken for a ride, and now the Taoiseach proposes to cancel the very help they desperately need with their energy bills. He should be continuing to provide energy credits as part of a cost-of-living package in the budget. That is the truth.
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We have had six months of this do-nothing Government. Now, the Dáil is about to rise. As it rises, the Government will leave people with stress and uncertainty. People will face big rent hikes next year, thanks to the Government. Students and their families face a big hike in college fees, thanks to the Government. Also thanks to the Government, tens of thousands of families will be left without cost-of-living supports and will wonder how on earth they will make it through the winter. Ní féidir leis an Rialtas teaghlaigh atá ag streachailt le harduithe praghais as smacht a thréigeadh. Caithfidh sé pacáiste costas maireachtála a thabhairt chun tosaigh sa bhuiséad. Households are under enormous pressure and are unable to keep up with soaring prices. The Government simply cannot abandon workers and families like this. I put it to the Taoiseach that the Government must include a cost-of-living package in October's budget.
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Ar dtús báire, ní aontaím leis an Teachta in aon chor, mar níl aon amhras ach go bhfuil an-chuid déanta ag an Rialtas chun an brú atá curtha ar chosmhuintir na tíre de dheasca an t-ardú ar an gcostas maireachtála a ísliú. Tá an-chuid déanta againn chun é sin a dhéanamh.
In passing, I also congratulate Katie Taylor on her outstanding win. She is one of our outstanding sportspersons and has done extraordinary work in terms of elevating the role of women in sport. She has brought great pride and distinction to the nation and to the sport of boxing.
I do not agree with the Deputy's analysis in terms of the Government not helping, doing nothing or telling people that it does not recognise the fact that prices are at a relatively elevated level following the peaking of inflation. It must be remembered that inflation peaked at about 10% in the immediate aftermath of Covid-19. Following the Russian invasion of Ukraine, it also peaked at close to 10%. What is interesting of course is that the Government did an awful lot. We did more than any other European government in terms of cushioning and trying to reduce the impact of cost-of-living increases on people. We continue to do that. In April, we decided to extend the VAT reduction of 9% on gas and electricity. This measure will save households €70 for gas and €55 for electricity. The Minister, Deputy O'Brien, took a further decision in June regarding a 40% reduction in the renewable electricity public service obligation levy. From September onwards, there will be a significant increase in the number of people who qualify for the fuel allowance.
Since 1 June, women can receive hormone replacement therapy free of charge. At the beginning of June, the carer's support grant increased to €2,000, which is the highest level ever. That benefits some 138,000 carers. Last week, the income level disregard increased for the carer's allowance, meaning more people will qualify for the allowance and more than 5,000 carers will receive an increase in their payments. The back-to-school clothing and footwear allowance will be paid out over the summer months. That has been extended for the first time to foster carers. From September, the free schoolbooks scheme continues to be extended to all students in post-primary schools and from September all primary schools are eligible for the free hot school meals programme. A school meals holiday pilot project has started this summer. Free public transport for children aged five to eight will be introduced later this year.
Far from the Deputy's assertions that the Government is doing nothing, we have taken all of these measures on top of the measures we took in budget 2025 and as part of the public service pay agreement. It is also worth noting that inflation in Ireland will come down to about 1.6% this year. The Deputy referenced our position within the European Union. We will have the third-lowest rate of inflation among the 27 EU member countries. Given the strength of the domestic economy that is quite a remarkable outcome vis-à-vis other European countries. Nominal wage growth is set to reach 5.5% this year. That will result in real incomes rising by between 3% and 3.5% per annum. That is important, because we are turning the tide in terms of this issue. That follows increases in real incomes in 2024.
Further increases are forecast for 2026. The focus in the budget must be on dramatically transforming our infrastructure, which we committed to during the general election campaign. This must be an era when we transform our roads, public transport and our energy and water utilities. That is to help the Irish people in terms of growth and jobs into the future. There will have to be a predominant allocation of capital in respect of these key agenda items.
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The deficit in our infrastructure is on the Government.
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It has presided over that. The Taoiseach is right that investment needs to be made. The mistakes that Fianna Fáil and Fine Gael have made during the past number of Administrations have to be corrected. The Taoiseach is right about that. However, he is entirely missing where the lives of families and people are at.
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He is right to say that the rate of inflation has fallen, and thank God for that. However, he is entirely missing the fact that prices have not followed suit. Anybody who goes into a supermarket or shop or opens a bill can tell the Taoiseach that we are in a place where households are still struggling.
On the Government's record, in the past five months the price of home heating oil has risen by €25 per fill. Petrol and diesel prices went up in May and the Government will go for those again in October. Local property tax has risen. Rents have gone up. Students' fees, as we know, are also due to go up. The Government has shown no regard or sensitivity for the realities of struggling households and workers. I am simply asking the Taoiseach to wake up and become aware of the realities of people's lives. They need these supports. They will need a cost-of-living package come October, mark my words.
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There will be supports in the budget to support people in dealing with the cost of living. Food inflation in Ireland in May was 4%. We are mid-table across the European Union. This is a Europe-wide phenomenon. It is a global phenomenon in terms of what is happening with the energy crisis.
I love the way the Deputy tosses out an aside to the effect that infrastructure is on the Government-----
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-----and that she does not have to account for it at all. We have spent record levels of investment in the past four years. We are going to go further again. The most important thing for the future of this economy is to ensure that we substantially increase and more than double the investment in the energy grid in order that we will have connections. That will allow us to deal with the growing population and economy. We have to ensure that there is huge investment in water, public transport and roads. That is what underpins the economy.
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-----and prioritisation of the surpluses we will have at the end of this year and, hopefully, into the future.
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Meanwhile, Johnny and Mary cannot pay their bills.
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I say that notwithstanding the difficult backdrop of the US potentially imposing high tariffs on the world.
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The Taoiseach blames that for everything.