Holly Cairns (Cork South West, Social Democrats) | Oireachtas source

The price of energy has more than doubled in the past year. More than 40% of households are now estimated to be living in fuel poverty, according to the ESRI. The unprecedented energy crisis is threatening the future of many viable businesses.

We are in the middle of an energy crisis. Like the housing crisis, though, the Government's response has been slow, wholly inadequate and, frankly, divorced from reality. Today, the Social Democrats are repeating our call for pragmatic and effective measures that will actually benefit households and SMEs. Each of our proposals is proven to work and could be implemented, if the Government were willing.

Targeted energy price caps that capped the price of average energy usage for households and businesses would ensure that everyone could avail of affordable rates for their essential energy needs. Germany has recently introduced this measure, and it has proven effective. We also need a windfall tax on the significant profits of energy corporations. It is simply immoral that large companies are making millions – in some cases billions – of euro off the backs of families struggling to get by and SMEs at risk of closure.

We are all focused on providing practical solutions. The Government's household energy credits could have been directed at those who needed them the most. It was wrong that all of us in the House, along with senior civil servants, CEOs and banking executives, got the same payments as pensioners, carers and people on disability allowance. Any system that treats millionaires the same as people living below the poverty line is unjust.

The Social Democrats have consistently called for a cash transfer to individuals that reflects their income levels so that those who are at risk of poverty are the ones who will be most protected. A fundamental principle for us is that we must ensure that any financial support or measure is targeted towards those who need it most.

In contrast to the Government's approach to date, our proposed targeted energy cap would mean that wealthier households did not disproportionately benefit and would incentivise energy conservation. Several other EU countries have introduced targeted caps, providing certainty and security for consumers and businesses. For example, Germany has a targeted energy price cap, which caps the price of approximately 80% of average energy usage, cushioning homes and businesses from dramatic energy price shocks and providing certainty about costs.

A windfall tax on grotesque profiteering is a moral and economic imperative. Last year, Shell's profits doubled to €36 billion while ExxonMobil made €51.5 billion in profit. Closer to home, in the first six months of 2022, Bord Gáis Energy's profits increased by 74%, the Electricity Supply Board's profits more than tripled to €390.3 million, and profits at the Corrib gas field tripled to an estimated €560 million. All of these should be subjected to tax to fund supports for families and small businesses that are struggling.

The Minister for the Environment, Climate and Communications committed to a windfall tax in August 2022 and the EU authorised its introduction in September 2022. Why has it not been introduced yet? What is the delay?

Many small and medium enterprises are on the brink of closure. Shops, cafés, restaurants and other businesses in west Cork have been under severe pressure. I cannot emphasise enough how important these retailers and hospitality are to towns and villages across the country. They are economic engines in rural communities and vital sources of employment. The skyrocketing electricity and energy bills are terrifying for family-owned and small businesses, and this is in addition to rising insurance premiums and the rising cost of food and transport. There is a pressing need to provide targeted supports for SMEs. The Government's temporary business energy support scheme is demonstrably not fit for purpose and just €26 million has so far been drawn down from a budget of €1.2 billion. The Government's response so far shows a lack of consultation with families and businesses, and no awareness of the suffering families are enduring or the uncertainty SMEs are facing.

We are arguing for proven social democratic measures. A windfall tax will work in tandem with a targeted price cap to ensure that energy companies cannot price-gouge, thereby protecting households and businesses. These measures should have been introduced months ago. Why the delays? Where are the Government’s priorities?

See this speech in context