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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Fuel prices and tax relief

Summary

Deputy O'Donoghue argues fuel protest anger came from tax increases and proposes capping fuel prices to provide stability for workers, hauliers, and businesses. The Taoiseach says the Government has already cut the tax component substantially through a large package, rejects the Deputy’s costings as false, and the exchange ends in repeated procedural interruptions.

I need the Taoiseach to listen very carefully. He keeps standing up here and keeps mentioning the protests in this country and the war. I will put on the record why the protests happened in this country. They happened because of the increase in taxation on fuel. I will show the Government how it can counteract this, and I have said it on numerous occasions. The Government should cap the price of fuel from which it takes tax. It is the same as income tax for every worker in this country. I will give a summary. At the moment, it is €1.92 for the haulage sector. Minus the VAT, that gives you €1.56. The Government has put a package in place for which most of them will probably not be able to qualify because most of them are under pressure. It is not only householders who are arrears but they are also in arrears. The bus companies and everyone is now in arrears. If the Government capped the fuel cost-----

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Arrears?

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They are in arrears on repayments for their trucks and tax arrears, so they cannot qualify for the Government's package.

For everyone in this country, the Government would cap the fuel prices at €1.70 for white diesel. That would mean it would not have had to put the package in place for hauliers and everyone else in this country. It would include the package that the Government is coming out with. What that would come back to is that if you cap it, it creates stability across the country, and also creates forecasting for 12 months.

What has to happen here at every budget going forward, and from now until the next budget, is that the Government has to put in a cap on what it takes in taxes. If it was €1.70 at the moment with the tax, even with the war, if there was an increase in fuel, we would not even be at €1.93 at the moment. It is the tax on the increased cost that is bringing it to €2.20. If you cap the fuel, all businesses are covered, and anyone who is registered can claim back the VAT. That makes for a stable economy.

I cannot understand why the Government cannot look at this. It can do the same with green diesel for everyone in the agricultural sector and whatever sector uses it. It can do the same with kerosene, which covers all the packages that the Taoiseach is talking about, such as home heating, which people rely on. It can do the same with petrol. That would mean that every worker in this country, every person who is caring for people, including gardaí, nurses, carers and the fire service - across the board - has something at source, but the Government has to give the cap, which creates the stability, for that to work. Take the taxes up to €1.70, but after that, no more tax. I have spoken to so many businesspeople, and everyone agrees with me.

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First, let us deal with that issue. The spin all along has been that we have taken in more from the VAT increase than we have given in reductions. That is not true. The bottom line is that because of the measures we took on 13 April, the percentage of the taxation component of the price of a litre of Euro-Super 95 petrol is set to fall to 44% compared with 58% at the end of March. The measures we have brought in have de facto significantly reduced the tax component of the price of fuel. Our overall package was about €750 million. The cost of that package, I acknowledge, is €670 million because we would gain about €82 million in the VAT component of it. That deals with this idea that we are getting more back.

On a cap, we do not favour capping the price of diesel or petrol. We think it should be specific fuel support packages for farmers and contractors. The Deputy is automatically assuming that most people will not benefit from the package, and he sort of said that was because of arrears. I was not quite clear what he was saying. I accept that people have to be tax compliant, but I would argue that the vast majority are tax compliant. Indeed, if they work with Revenue, Revenue has already said it is going to be flexible and so on. If people have arrears with others, that does not mean they are not entitled to the package. They will be entitled to the package.

It is a substantial package. Particularly in road haulage, the sector was quite satisfied with the nature of the package. The package for contractors and farmers is quite extensive at over €100 million, with a very significant reduction in the costs. People will be able to benefit from it. The Deputy has not set out with precision why he believes the vast majority will not be entitled to it. I would like him to explain why he thinks the vast majority will not be entitled to it.

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It is an important point. We have put forward a very significant package to get down the cost; there is no question about that. The figures are there in terms of how substantial the reduction is compared to what the tax component was. We will work out the package for farmers and contractors, and we will be in a position to outline those shortly. We have also provided a range of other supports to people more generally across other sectors of the economy.

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It is easy to know the Taoiseach has never been involved in business because he would understand stability and forecasting if he had been. Everything that he discusses is the package. Is there one package there for the working person in this country who is travelling? The Taoiseach is talking about 2.3 million vehicles. He mentioned road hauliers. Road hauliers, in this package, are 17% of the transport network in this country. There is the Irish trucking haulage. Until this package was introduced, you did not get a subsidy if you were drawing your own goods. Now, they are included in this package. This is what I am talking about.

If the Taoiseach had done what I told him on a cap on the cost of fuel, he would not have had to introduce any package. Everything would work itself out. If a person was going to work in a car, a van or otherwise, with the package on white diesel, everyone would get it, and everyone on petrol would get it. That means that not only householders would get it, but all the businesses up along. Anyone who was registered could claim their VAT back, which would reduce their costs in providing stuff for people. I am not talking about a package for this person or that person. I want a package for everyone, and a cap applies to everyone, not just one sector.

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Have you costed it?

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How much?

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The same revenue you had six weeks ago is the exact same revenue you will have today.

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No, that is not the way-----

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This is a falsehood that you are presenting.

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Verona Murphy An Ceann Comhairle Independent

Sorry, Taoiseach, excuse me.

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The Taoiseach asked me.

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With the greatest of respect, it is an absolute falsehood you are presenting.

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Verona Murphy An Ceann Comhairle Independent

No, you will not, Deputy.

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A Deputy

It is fairytale economics.

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Do you want me to answer?

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You need-----

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I will do a live debate with you and answer you. There you go. Live - the two of us.

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Verona Murphy An Ceann Comhairle Independent

Excuse me. It does not work like that, Taoiseach. You may further engage outside this forum.

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I am speaking through the Chair. He is shouting across.

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Verona Murphy An Ceann Comhairle Independent

Yes, through the Chair.

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Verona Murphy An Ceann Comhairle Independent

You do not expect the Deputy to answer you. You can further engage. He can ask a question, absolutely.

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But I cannot.

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I can. He asked me a question.

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Verona Murphy An Ceann Comhairle Independent

Yes, but do not give the answer here. You may need further engagement.

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Thank you, a Cheann Comhairle. Like everything, he just wants to run down the clock.

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Verona Murphy An Ceann Comhairle Independent

That is enough, Deputy.

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You have your video clip now, Richard. You are happy.

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A Deputy

He ran down the clock on Fianna Fáil and Fine Gael anyway.

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Verona Murphy An Ceann Comhairle Independent

Please, Deputy. The Taoiseach will finish his response without interruption.

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I am entitled to pose a rhetorical question as a form of debate.

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Verona Murphy An Ceann Comhairle Independent

Yes, you are. It is Deputy O’Donoghue who is not entitled to answer it.

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I would make the point. I know the Deputy was involved in the protests-----

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I was supporting them.

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-----and I know he took a role and so on like that, and he was deciding who was going to get all, and who was going to get-----

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-----which I do not agree with, but-----

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On a point of order, that is out of order.

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I want to ask you------

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On a point order, I went down and negotiated as a public representative. You had someone on the live airwaves who has misled the public.

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Verona Murphy An Ceann Comhairle Independent

Deputy, resume your seat.

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He has made a challenge against me.

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Verona Murphy An Ceann Comhairle Independent

Deputy, resume your seat.

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Deputy, what I will say to you-----

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He has made a challenge against me. Live debate. That is all you are good for, running down the clock.

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Verona Murphy An Ceann Comhairle Independent

Resume your seat.

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Verona Murphy An Ceann Comhairle Independent

That is the end of Leaders’ Questions. The Deputy does not wish to hear the response.

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Finally, through the Chair, I have worked with the Deputy before. He is doing a lot of shouting and roaring here today in the Chamber. He has asked me about different things in the past, plenty of times, as a Dáil Deputy, and I have responded to him. I treated him courteously. All I am saying is that I have no difficulty discussing with the Deputy at any time.

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