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 Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Regarding the different issues that have been brought forward, I first picked the date of the end of August-early September for the change that would be made in petrol and diesel excise in the hope that the energy price pressure that we are facing due to the war would begin to moderate and improve as the year goes on. It is certainly not my intention to go back to the Government and ask for the Dáil to be recalled. The thinking behind that date had nothing to do with whether the Dáil was sitting or not. I will certainly keep under review the pressures that continue in relation to petrol and diesel, and then decide what is the right step to take on the current excise reduction.

On the question regarding the diesel rebate scheme, the Deputy asked whether I gave any consideration to cancelling it and making the change he referred to. I did not. While I will always face calls to do more, as the Deputy is making of me, and I understand why, the measures we have brought in for both petrol and diesel are considerable and ensure that the increase all fuel users are facing is not as big as it otherwise would be. I know that is cold comfort with the challenge many are facing, but a 9 cent to 13 cent reduction per litre is still a significant response and is a measure that is costing the State many hundreds of millions of euro.

As to where we are with home heating oil, and the increase in carbon tax that is due to that, the Deputy asked whether I gave any consideration to reducing the carbon share of that excise tax. The Government is committed to going ahead with changes to carbon taxing. The Deputy made the point about the multiple crises we are facing. The additional crisis we are facing, as he well knows, is in regard to climate. This week alone, the United Nations warned all of us that we have so little time left to avoid a catastrophic decline in our climate. The revenue from carbon taxing continues to play a very valuable role in trying to mitigate the effect of that damage and to invest in the areas that might make some difference to us in the future.

On the off-sets that the Taoiseach and Tánaiste referred to yesterday and how they will be implemented, I am working with the Minister, Deputy Michael McGrath, on that. Of course I know the deadline is 1 May. When we have decided what we will do in conjunction with the rest of the Cabinet, we will then be able to say what the legislative means will be, if needed, for implementing it.

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