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

Fuel taxation cap

Summary

Deputy O’Donoghue sought a cap on fuel taxation and disputed the Government’s account of increased tax revenues and costs. The Taoiseach rejected the comparison, offered a meeting with finance officials, and stressed that revenue funds essential services.

I wish to extend my deepest sympathies to Treasa and family on the passing of Seamus Carroll. He was a great friend, with great banter, and his friendship will be dearly missed in this House.

After co-chairing a conference in Dublin Castle during our EU Presidency and after speaking to many colleagues across Europe, I have a question for the Taoiseach. I need him to be very clear in his answer. Is it possible to cap the taxation on fuel from budget to budget in this country? We could cap it from budget to budget and if there was an increase in the cost, the cost was would be the cost and it would not be an increase in tax. It would not take away from any taxation that preceded the capping. We could tax it at €1.70, which is 10% more than the taxation of last year's average, and after that we would pay the increased cost.

In that way it would have no implications for the public finances. In the shocks that are coming forward, people would only pay the increased cost, without a tax.

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Is the Deputy talking about VAT?

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I am talking about a cap on the complete taxes.

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The bottom line is we have given back about €1.3 billion. Not given back, I am sorry, that is-----

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The Government took it back in increased costs.

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We did not. That is the point.

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No, that is a false comparison.

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We did not, in any shape or form, have anything equivalent to €1.3 billion. The figure for increased VAT returns and so on is much lower.

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When it is taken over a whole year, you did.

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No.

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John McGuinness An Leas-Cheann Comhairle Fianna Fáil

Order, Deputy.

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I will try to arrange, through the Minister for Finance, a meeting between the Deputy and others and finance officials to get the full, transparent presentation of that. I make the point, however, that revenue across government is also required to sustain schools, as the Deputy advocates, and to support farmers and so on.

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And also to put food on the table for the people who go to those schools-----

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I agree 100%, which is why-----

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-----and to let people go to work and pay their taxes for those schools to open.

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John McGuinness An Leas-Cheann Comhairle Fianna Fáil

Order, please. I call Deputy Séamus McGrath.

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That is why we have free hot school meals in every single school at primary level.

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John McGuinness An Leas-Cheann Comhairle Fianna Fáil

Taoiseach, resume your seat.

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That scheme costs €300 million.

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