We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Cost of living and fuel taxes

Summary

Deputy Tóibín attacked rising electricity, fuel and grocery costs and asked the Taoiseach to rule out further fuel tax increases. The Taoiseach blamed major global energy shocks, set out existing cost-of-living measures, then the exchange shifted into a row over electricity prices, the ESB, renewables and the North-South interconnector before the time expired.

We are living in a rip-off Republic at the moment and the Government is the architect of it. Families are being hammered on a daily basis by ever-burgeoning prices on a range of necessities of life. The price of electricity has risen by 57% in just five years. Ireland has the highest household cost of electricity in the whole of the European Union. The ESB, a semi-State operating on the basis of Government policy, made €636 million in profit last year. It is an incredible fact that a semi-State operating under Government policy is making supernormal profits at a time when 500,000 people are in energy arrears. That works out at €300 profit for every household in the county.

Last year, according to replies we received to parliamentary questions, the Government made €4.3 billion in fuel taxes. In the jaws of a cost-of-living crisis, it made more in fuel taxes than ever before. Its plan is to increase carbon tax. Carbon taxes were €1.2 billion last year - 80% higher than they were five years ago. They will increase in October this year and every year to 2030. The cost of diesel is 40% more than last year and carbon tax is the main driver of that.

Comment on this

It is not the main driver.

Comment on this

It is the main driver of the increase in the price of diesel. It is a blind tax. It takes no consideration of people's ability to pay. In actual fact, it hurts those on low incomes the most. This is the most detached Government in generations. It simply does not get it. It does not understand what is happening in people's kitchens - the pressures, the stress, the anger. People are a toothache or a timing belt away from debt. They are living from overdraft to overdraft. People are working all the hours they can get, yet they are struggling to keep the lights on and pay for fuel to commute to work.

We had a warning from the Central Bank last night that inflation is about to get worse. Gabriel Makhlouf said global supply chain pressures intensified in March and April and will put upward pressure on goods prices. It is spreading across all sectors - retail, services, industry, construction. All this has pushed mortgage rates up in recent weeks. Despite all this, despite the crisis families are in, at midnight on 31 July, away from the political spotlight, when Dáil Members are sunning themselves on holiday-----

Comment on this

Ridiculous. What kind of populist-----

Comment on this

-----it is the Government's plan to raise petrol by 27 cent per litre and diesel by 32 cent per litre. That is an incredible thing. Is this not the ultimate two fingers to the people of this county who are in trouble in terms of the cost of living? Will the Taoiseach commit today not to increase fuel taxes on 31 July and to give the people of Ireland some respite?

Comment on this

I will be working throughout July. I hope people get a bit of sunshine in July but the way things are going it is a fairly rare occurrence these days.

The issue the Deputy raised is serious. The one issue he studiously avoided mentioning, bar indirectly when quoting the Governor of the Central Bank, was the war in the Middle East. He ignored the two wars - ignored them completely - and he said other things were the drivers of increases in energy prices. The driver has been clearly the war in Iran. Everybody knows that and he ignored it in his presentation.

We acknowledge there is a cost-of-living issue. The Deputy quoted from the Governor of the Central Bank. What did the Governor say? The Deputy can quote it back to me if he wishes. It was that global pressures will create inflationary pressures here. That is true across Europe.

When the governor of the European Central Bank spoke to the EU Council at the commencement of the war, she said things were going in the right direction. Inflation was coming down to around 2% and growth was happening again in the European economy more widely. The war hit and we saw what happened in Qatar. The positive news is we have, hopefully, a sustainable peace. That will lead and already has led to a reduction in the global market price of oil and gas. That will continue for the rest of the year and into the new year. Even better outcomes could develop from that.

We are very conscious of inflationary pressures. That is why in the budget and in the recent package of €750 million, we intervened to alleviate pressures as much as possible on people. Some reductions in the budget were of a permanent nature. We increased core social protection rates by €10 and introduced a significant targeted increase in child support payments. The fuel allowance was increased and expanded to take in those on the working family payment. A one-adult household on the lone parent payment with one child will see an increase of 9%, that is €1,800, from the Department. A two-adult household will see an increase of just over 8% or €2,300, in their payments.

On the broader issue of those in arrears, there are about 184,000 in arrears on electricity over 90 days. The Department of energy and the Department of Social Protection will further analyse that and see how our resources can be targeted on that issue as they have been in other areas through MABS. We have helped families and so on deal with situations that they are in.

They key issue of course is we have to replace fossil fuels with renewables. The Deputy mentioned the carbon tax. Substantial money goes to farmers - 60% of ACRES is from the Exchequer. Substantial money goes on retrofitting. Since 2019, over €1.8 billion has been spent on retrofitting. We have been able to provide energy upgrades to 268,000 homes. We could not have done that if we did not have the carbon tax in place.

Comment on this

There are global pressures. There is no doubt about that, but this country is an outlier in terms of many of the costs people are paying. It is the Government's effect that makes this country an outlier. The Taoiseach talks about the carbon tax. We have shown through parliamentary questions that hundreds of millions of euro from that have gone back into the Exchequer and have never been used. These are parliamentary questions answered by Ministers.

The price of a shopping trolley has increased by 40% since 2021. This is the second most expensive country in the European Union. Groceries cost 15% more than the European average. Average rents have increased by 36% in five years, up to €2,700 in Dublin. In one year over the last five years, the cost of living has gone up €4,000 on average per household. That is the definition of a rip-off. We are one of the richest countries in the world, yet middle-income families are so squeezed as a result of Government decisions. The Taoiseach studiously stopped answering that question. I simply asked him a question. He might address it. Will he stop the increases in taxes on petrol and diesel on 31 July?

Comment on this

The Government is monitoring the situation and will make clear to the Dáil before the summer recess our position on that and how we deal with that. The permanent reductions in cost of living the Government has introduced include free schoolbooks at primary and secondary level, expansion of free hot school meals, universal childcare subsidy, €280 new baby grant, hospital inpatient charges abolished, expanded free GP care, free contraception for 17- to 35-year-olds, free HRT. I could go on in terms of the interventions the Government has done to create a permanent reduction in the cost of living, notwithstanding the huge increases.

We have had the Covid pandemic. The supply-chain crisis led to inflation. The war in Ukraine led to inflation and an energy crisis-----

Comment on this

-----and so did the war in Iran lead to very substantial increases.

Comment on this

It is from the dysfunctional system of electricity generation.

Comment on this

Increases in supply.

Comment on this

We need to get to renewables and we need a better grid, but Deputy Tóibín opposed the North-South connector.

Comment on this

No, we support it; we just think it should be underground.

Comment on this

You do not support it. You want it delayed.

Comment on this

You oppose it.

Comment on this
Verona Murphy An Ceann Comhairle Independent

Deputy, please.

Comment on this

You oppose it. That is the bottom line.

Comment on this

It is not built because you want it overground.

Comment on this

If we keep doing that in this country, we will have more crises.

Comment on this
Verona Murphy An Ceann Comhairle Independent

Thank you, Taoiseach. The time is up.

Comment on this

We have to expand the grid and we have to get more renewable energy. That is it-----

Comment on this
Verona Murphy An Ceann Comhairle Independent

Just before I move to Other Members-----

Comment on this

-----but Deputy Tóibín does not support any of that deep down.

Comment on this

Stand on the back of a trailer.

Comment on this
Verona Murphy An Ceann Comhairle Independent

Thank you, Taoiseach. I have two welcomes, one is to Ale, Sallyann, Gail, Emma and Dara from Gorey who are here as guests of Deputy Ó Súilleabháin.

I also welcome the Athboy Tidy Towns group. The Athboy person of the year is present, Lily Mangan. They are in the Gallery and they are guests of Deputy Aisling Dempsey. You are most welcome, everybody.

Comment on this