Gerald Nash (Louth, Labour) | Oireachtas source

Labour fully supports the motion for several reasons. With the increases in fuel duty brought in on 1 April and those planned in August and October, the Government is wilfully piling straws on a straining camel's back as working people in this country continue to struggle with the cost of living. The wording of the motion gets it right: "the Government chose to increase the price of petrol and diesel". It did not need to do so but went ahead and did regardless, despite the impact on those who are struggling to make ends meet.

It was in that context that on budget night last October the Labour Party moved a motion to seek a deferral of the planned excise duty increases pushed on punters at the pumps at least until budget 2025, in October of this year. On the night of the most recent budget, the Minister, Deputy Ryan, who was taking that Government business, refused to accept the Labour Party amendment to the motion, and we have seen excise duties rise at the pumps on 1 April. It was cleverly dubbed "April Fuel's Day" by Pat Flanagan in the Sunday Mirror, and he was not wrong. That increase went ahead in April, and further increases are planned for August and October. I am making the case once again that all those price hikes should be deferred and reconsidered at least until the situation is reassessed in budget 2025, in October.

The Minister can lay the blame for price increases elsewhere in the economy at the door of so-called price shocks - we have heard that time and time again - brought on by war and destruction to supply lines, but these increases are different. These are being wilfully imposed by the Government when it does not need to do so. This is entirely a Government-imposed increase on hard-pressed consumers. The coffers are full, and high fuel prices, since late 2021, and certainly since the outbreak of the illegal war Russia is waging on Ukraine, have perversely managed to bolster the public finances through a VAT bonanza. We know that. Consumers are already getting stiffed at the checkout and by profiteering telecoms and energy companies. Although the Minister will say inflation and the cost of living are coming down, the reality is that, while the rate of increase may be slowing, the cost of living is still extremely high, especially for those working people on small or fixed incomes. His actions need to reflect that reality. In 2023, real household incomes grew by 3%, yet wages rose by 8.5%, the difference explained largely by price increases. The rate of increase in inflation, as I said, is falling, and there is a real onus now on the Government and regulators to be vigilant and to keep a watching brief on, for example, the big supermarket chains, utility companies that charge among the highest prices in the EU and telecoms companies to make sure consumers are getting a fairer deal.

Crucially, however, the Government also has a responsibility not to add to inflationary pressures. Increased fuel prices and transport costs will in time be reflected on our supermarket shelves sooner or later, and that will potentially start to drive inflation in the wrong direction again. If, however, the Minister is unmoved to change course on this issue for the benefit of hard-pressed consumers, perhaps at least he will spare a thought for the small business owners in Border counties such as mine who stand to be significant losers in the wake of these planned price hikes. They are on the losing side already. In Border counties such as Louth, small businesses depend on fuel sales. They are vital sources of local employment, especially in more remote and more rural parts of my constituency, such as north Louth. They are bracing themselves for price hikes that will result in fuel being significantly cheaper across the Border, and there is no end to this. They will have more. Recently, the British Government, as has been said, postponed a similar intention to raise taxes on motor fuels. That means that if Ireland goes ahead and increases prices in August, the cost of petrol and diesel will be much lower north of the Border, leading to a fuel drain in Border areas, decimating small fuel retail businesses in places in County Louth. Estimates from a local fuel retailer in my area suggest that petrol will be up to 18 cent a litre cheaper and diesel 8 cent a litre cheaper north of the Border after the planned August increase. For fuel stations, which are important employers of local people, the results of this variance in price will be devastating.

Those of us who represent Border communities know that Border-based business are used to dealing with currency differentials and they deal with the swings and roundabouts of that. They have a good year or two and then will maybe have a bad year or two. Those are the swings and roundabouts of operating a business and being an employer in Border areas but these are Government-imposed increases and something can be done about it. Those who choose to seek their fuel across the Border are likely to do their shopping while they are there, resulting in an additional knock-on effect in Border shops and supermarkets. That is a familiar thing to businesses along the Border and is an experience we have all had over the years in my own county of Louth. The Irish Petrol Retailers Association fears that Border stations will close and jobs will be lost if these fuel increases go ahead as planned in August. I therefore urge the Government to take a second look at these planned duty increases and at the very least hit the pause button for now in order that small businesses in Border regions do not suffer because of an unfair advantage this Government will be willfully handing to their cross-Border competitors. Consumers need a break from the constant rise in the cost of living and the Government has the ability to deliver that by changing course on these planned hikes. As I proposed at budget time, let us put a freeze on these excise duty increases at least for now, and give workers a rest from pumped up prices.

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