Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

In fairness, no matter what happened in last year's budget, the fuel allowance will not come anywhere near the inflation facing households this year, which equates to an extra €700. I would say Mr. Lawler would accept that.

Where is the Department's head, and that of the Department of Public Expenditure and Reform, with regard to indexation? We are always hearing Ministers saying that they are indexing but, here in the Committee on Budgetary Oversight, we are hearing that they are not or, if they are, they are indexing to something in their heads because they are not indexing to either past or forecast wages or inflation. Where is the policy going? Mr. Lawler said there was no policy at the time and that there is none now with regard to indexation. Is a policy being developed? Is there a plan to develop one? Are we going to be looking at indexation? People have been saying that the rate of inflation may reduce and come back under 2% in the coming years or possibly even next year. However, those increases have already been baked in. Unless there is a negative rate of inflation, those increases are baked into the system. Those costs are recurring. Will Mr. Lawler give us an outline of the thinking within the Department with regard to indexation?