Oireachtas Joint and Select Committees

Wednesday, 4 May 2022

Committee on Budgetary Oversight

Stability Programme Update 2022: Minister for Finance

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

The Department, the Government and I acknowledge that the challenges many families and businesses now face with the rising cost of living are a real challenge for many. However, this is the reason why at different points this year, we brought forward different measures to try to help people with the rising cost of living. They involve the change to excise on fuel, the reduction in VAT on gas and electricity and the two additional payments introduced by the Minister for the Environment, Climate and Communications and the Minister for Social Protection to help those at risk of fuel poverty. Since we announced the budget last year, we have put in place measures worth just under €1.1 billion, all of which try to help people with the cost of living and the rising cost of fuel. Within that are a number of very targeted measures to help those at risk of fuel poverty. We have put in place a package that compares very favourably with measures introduced by many other countries and that is concerned with trying to help quickly with challenges we know are real and are having an impact on many.

The Deputy raised the issue of a cap on the number of Ukrainian refugees. I know he did so for compassionate reasons because he is concerned about how we will be able to help those coming to our country and the knock-on effect their arrival could have on the rest of our society. I will not attribute to him any other intention in raising this point beyond the genuine reason for which he raised it. However, the reason I take a different view from him is because if we look at where we are as a country, we can see that we are at the furthest possible distance from the war in Ukraine. We could not be further away from the humanitarian consequences of the war. It would send out a signal about Ireland that I would not like to see sent out. We would be saying that despite our distance from the war, we would be the only country in the EU that would place a limit on how many will come.

Regarding how we can support those who do come, I accept the Deputy's point that there are difficulties and challenges regarding how we will do it. I do not need to tell him about the difficulties we had with the availability of accommodation before we had to deal with the arrival of those coming from Ukraine. What it means is that we will be providing emergency accommodation that will be very different to how we would like to help and support those coming to our country for entirely different reasons. I do accept that is an issue but it is the reason why we, in turn, have already said that for next year, we will set aside a reserve of €3 billion to give ourselves every chance to try to give decent support to those coming to our country in circumstances that are beyond our imagination.

The final point the Deputy made was on the cost of housing. The cost of housing is being further exacerbated, in turn, by the increase in the cost of raw materials that is happening all over the world. That said, it is a positive development to see the level of commencements and completions now taking place in the country. The supply of new homes, despite the impact of Covid-19 on the country, is at a higher level than I thought possible for much of the pandemic. It is also the reason that I believe schemes such as help-to-buy have a role in our economy to help those who are trying to get their first home. It is the reason that I and the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, are so committed to the Housing for All programme because we know that while the impact of the war on our society and economy is great, it is not a reason for not continuing to make progress on the great challenges we have regarding the supply and affordability of homes.

That is just a brief response to the variety of measures and issues the Deputy has raised.

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