Oireachtas Joint and Select Committees

Wednesday, 1 June 2022

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

Photo of Seán CanneySeán Canney (Galway East, Independent) | Oireachtas source

I thank Mr. Barnes. I meant to say at the start that I was watching these proceedings in my room but that the Internet connection was a bit flaky. It was going in and out. I decided to come down and join the party here. Not the political party.

When we talk about changes in this context, I was in an electric car last night. The tax on it is €90. I guess the tax on that type of car will go up as the cars powered by diesel and petrol leave the roads. Another area where there is a conflict of interest concerns the context of hyperinflation and the necessity of supporting people on fixed incomes. We will have to support people who have disabilities. Additionally, we will have to increase support for those people and not just keep it in line with inflation. I say that because we can already see from the reports done that people with disabilities have additional costs to bear just to live. I refer to how we can address this aspect and how we can keep those supports in line with inflation. Equally, we also have people who are working and contributing to society. I refer to the cost of travelling to work for the many people with no access to public transport. Public transport is probably now being subsidised more and that is benefiting some people because of a reduction in rates, while other people who have no access to public transport must use their own vehicles to go to work and are facing greater costs as a result.

We can see a differential emerging before our eyes. How do we balance this situation? Let us take people who have mortgages as well and consider the rise expected in interest rates and the resultant increase in the costs of mortgages for working people. How can we best address this type of situation? Is it through additional tax reliefs to help people to pay their mortgages? We are trying to do everything for everybody. Where does Mr. Barnes perceive the challenges will be in this regard? What impact will this situation have on the budget for this year and for those in the following four to five years?

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