Oireachtas Joint and Select Committees

Wednesday, 6 April 2022

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance (Covid-19 and Miscellaneous Provisions) Bill 2022: Committee Stage

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I wish to ask the Minister a number of questions about amendment No. 7. As we know, it relates to the financial resolution that was passed and that is just now being put into statutory law to ensure that it does not lapse after the 90-day period, or whatever the number of days a financial resolution can last is. I am conscious that none of us can predict where petrol and diesel prices will be in the coming months. I saw that in my local garage yesterday diesel was up at 195 cent per litre. I know that that can vary from area to area and that, depending on further sanctions, we could see different price increases and pressures over the coming period. I am concerned that this measure will lapse on 1 September. It may be appropriate that it lapse on 1 September if prices stabilise, but they could go in completely the wrong direction. I am also conscious that the Dáil does not sit usually on 1 September. Therefore, if through the summer period petrol and diesel continue to rise as a result of international pressures, although it is to be hoped the war will be well over by then, there would be a challenge to deal with this. I understand that the only way we could do this would be to reconvene the Dáil and pass another financial resolution at that point in time. I ask the Minister to speak to the fact that he has chosen 1 September as the date on which this lapses. I am very conscious that there is normally no Dáil sitting at that time, and I suggest that that may be the reason the date was chosen as opposed to dealing with the matter six weeks later in the budget.

I have a second question for the Minister. He acknowledges that we could go further in respect of petrol and that another 10 cent could be cut off excise. Nearly 11 cent could be cut off the excise duty on petrol without breaching the European rules in this regard. Has any consideration been given, for example, to suspending temporarily the diesel rebate scheme and ensuring that all hauliers are able to avail of that 7.5 cent excise rebate, given it directly at the pump? The benefit of that would be that not only would the hauliers - or certain hauliers because not all of them get the rebate - benefit from it but all other users of diesel would benefit as well. That would be in compliance with the European rules, so there is a possibility there to reduce petrol by 10 cent more and diesel by 7.5 cent more by introducing a measure that would suspend the scheme where the rebate would have to be applied for. The hauliers would still get that benefit because they get the rebate directly at the pumps, but every other user of diesel would also get it.

Another question I wish to come on to is about home heating oil and the fact that excise duty was not reduced on home heating oil. In America there are advertisements that say "This ad was approved by the candidate". I am not sure if the Minister approved the fake news Fine Gael put out saying there was no excise duty on home heating oil. As we know, excise duty comes in the form of mineral oil tax, which has two components: a carbon component and a non-carbon component. The document before us is very clear. We can all read. That issue, in fairness, has been cleared up, but the carbon component of the excise duty on home heating oil could and should be reduced, given the huge increase that has happened. It should be reduced on a temporary basis to release the pressure on families.

Furthermore, in three weeks' time the Government plans to increase excise through further increases in carbon tax on gas and home heating oil and a number of other fuels. The Taoiseach has said that that will be offset. What is the financial measure the Government plans to bring forward in the next three weeks to offset this increase? For example, home heating oil will go up by €20 a fill. What is the financial measure or legislative instrument the Government will use? Will the Government use this legislation, with the Dáil in recess for two weeks so there will be one week left before the Government's carbon tax increase kicks in?

Will the Minister give the committee clarity on the schedule because the schedule deals with the increase that will happen on 1 May?

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