Cost of living and energy crisis
Ivana Bacik argues the Government is weakened by the energy and fuel crisis and asks for stronger support for hard-pressed workers and families. The Taoiseach points to global shocks, existing cost-of-living measures, and the need to expand renewables and reduce dependence on imported fossil fuels.
Deputy Ivana Bacik. I am sorry this is Leaders' Questions, so resume your seat Deputy Kerrane.
Comment on this
Resume your seat, Deputy. You cannot play to the Gallery. I will have the Member-----
Comment on this
I have never heckled. Sorry, I have never heckled.
Comment on this
The Government has been weakened and damaged over its inadequate response to the energy crisis and fuel protests, with further challenges to come. The Government has now lost a Minister of State, and a backbencher - two Healy-Raes for the price of one, and a high price indeed.
The Government won the vote last night but the pressure for hard working families and households in this cost-of-living crisis has not gone away. For hundreds of thousands of PAYE workers, struggling to pay soaring bills, where is their support package? For those who turned up at the office, the shop or the factory or who logged on at home for work this morning, what message has the Taoiseach for them?
The budget last October delivered no relief for working people. Energy credits and one-off payments were withdrawn. The Government gave tax breaks to developers and fast-food chains – tax breaks paid for by workers. The Government could instead have taken the progressive step of indexing income taxes, as the Labour Party sought, but it did not. At the behest of business interests, the Government delayed the living wage and an increase in statutory sick pay while voting down our Labour Party Bill to give workers a real right to remote work.
There is real suffering across our communities. Households are facing rising bills. Grocery prices, already increasing, are set to soar further as food security is impacted by global shocks. There are rising rents and mortgages, and electricity and gas bills that families are struggling to pay. All of us are hearing this, that people simply do not know how they are going to manage.
The only relief the Government has given is a few cent off petrol and diesel. Over two emergency packages now, we have seen special supports for those that shouted loudest but nothing to relieve the real pressure on PAYE workers and families.
They are left with no option now but to seek pay rises in the months ahead. We will support the trade unions in that endeavour because more support is needed. In recent days, I have spoken to parents in Galway and Dublin desperate to see their children stay here rather than emigrate. I have spoken to young adults who see no future for themselves here. What help can the Taoiseach offer them? What is he going to do for the 320,000 households in arrears on their electricity bills, the highest number ever, or the 180,000 in arrears on gas bills? Yesterday, an ESRI report confirmed that Ireland has the highest energy prices in Europe. Yes, they were relieved in recent years by VAT reductions and energy credits but that took us down to eighth highest, and those credits are now gone. We know there are no easy answers to the global energy shock but the Taoiseach must heed the advice of the IEA. We need radical action now to harness more renewables, bring down energy costs, tackle climate emissions and ensure fuel security. Will the Government publish a national fuel security plan? Will it promise PAYE workers it will bring forward targeted supports for them and help the desperate households now in arrears on energy bills?
Comment on this
I fully accept people are under enormous pressures, in particular because of the war in the Middle East. People have had to endure a range of shocks going back to Covid and right through the war in Ukraine which had a severe impact on oil and energy prices and fed into general significant inflation in those years. Then we hit the tariffs a year ago, which is having an impact on a number of our companies, and now there is a war in the Middle East which has had a severe impact on oil prices again and is feeding into inflation. There is no question that people and families are under huge pressure. The ESRI also said successive Government measures shielded people substantially but could not cover everything. I would say no Government in the European Union has provided as many cost-of-living supports over the past five years as this Government.
Comment on this
That is the reality but it still does not mean that people are not under pressure. We introduced some fairly radical schemes that would not have been thought possible five years ago, like free book schemes for every child going to school and free hot school meals. Across the board, we have brought in measures such as extending free GP care and many other measures in health in particular and in transport to try to ease the pressure on people in a systemic way. I would welcome a conversation because I think the Deputy has a responsible approach to politics although I thought last week she was noticeable by her silence.
Comment on this
I understand why and I think we need a discussion about it in this House. There is a lot of what went on that the Deputy would not have agreed with, if she is honest. That was evident in the voting pattern last evening. I think the Deputy got a glimpse of what sidling up to Sinn Féin can mean for her party and the damage it can do to it in the time ahead. I would welcome a debate in terms of priorities or a discussion and engagement on priorities. The Deputy's party opted not to go into government; that is fair enough. That was her decision and she opted not to go into government because she was afraid of the people alongside her. We are in government-----
Comment on this
You wanted Michael Lowry. The Healy-Raes just left you.
Comment on this
You did not look to go into government; you went on holiday.
Comment on this
We are in government. I will accept any constructive proposal on the cost of living, a sustainable way in terms of climate and also energy security. Thankfully, we have national oil reserves. Last week, we had a round-table meeting with those involved in NORA and in energy security. I can share that with the Deputy if she wishes.
Comment on this
With respect, the Taoiseach has got to stop rewriting history about Government formation. As he well knows, he had done the deal with the Lowry gang and the Healy-Raes before-----
Comment on this
Indeed, that deal is now unravelling, as we saw with the departure of half a Healy-Rae.
Comment on this
Also, the Taoiseach has to stop rewriting history about last week. The Labour Party in my name issued a statement last Wednesday morning calling on the Government then to engage with the representative organisations. It took the Government until Friday afternoon to do that. We also called for the lifting of the blockades on Wednesday morning. We had a very clear position and I will not accept the Taoiseach's claim on that. On the ESRI report, yes, it acknowledged Government supports had helped, but those supports are gone. The ESRI also pointed out that Ireland has such high energy prices because we have never diversified sufficiently into renewables where other counties have.
Comment on this
What is the Taoiseach going to do------
Comment on this
-----to ensure radical action on climate and renewables that we need for energy security?
Comment on this
We are going to diversity more into renewables. We have diversified substantially into renewables in this country. Over 40% of electricity generation now is onshore wind generation. We have had two successful auctions for offshore wind. I actually agree that the only way to avoid these types of global shocks is by having more renewables as they contribute to the grid. There is no other way. If one looks at all the shocks from the 1970s onwards, they were shocks because of wars or fossil fuel shocks. They have dislocated economies and caused pressures on families and jobs. We know that from various recessions we have had to encounter in previous decades. Therefore, it makes logical sense that we would invest in the resources we have. As the Deputy knows, we had auctions for offshore wind, which is a significant opportunity. I set up a clearing house from my Department to try to remove barriers and obstacles to the development of offshore wind because-----