Oireachtas Joint and Select Committees

Wednesday, 16 November 2022

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

Business of Select Committee

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

I thank the Deputy for tabling his amendment. I am very much aware of the impact the rising cost of petrol, diesel and home heating oil is having on living standards within our country. I am aware of the great concern that many face this winter which has darker nights regarding how they can keep themselves warm and I am aware of the costs of using a car, commuting and going to school, etc. I understand that people have to go about their daily lives in which the use of a car is so fundamental. I also accept and appreciate that for those who live outside of the larger cities and towns that a car is really important, and that the rise in cost of fuel has a further impact upon them.

Deputy Doherty is correct in describing the further flexibility that is available to the Government, if we chose, to further reduce taxes in these areas. Even though that flexibility is there, we still have a need to be able to ensure that we can afford what we are doing and that the measures overall are ones, if we need to renew or continue them, that we are able to do and that we have the ability within our national finances to be able to afford the measures that are in place. Overall, we have brought forward a budget of €11 billion, of which €4 billion is cost-of-living measures that are one-off. Some are targeted, yet aim to make a real difference to the very constituents to which Deputy Doherty referred. We have measures in place yet Deputy Doherty argues that they are insufficient.

The cost of that alone, to the end of next February, is €281 million. It is a huge amount of taxpayers' money being used to reduce the cost of fuel for many who are struggling with that at the moment. While there were some positive trends for a while, in particular with the price of petrol at the pump beginning to come down, that is not carrying through into other fuels at the moment. I know it is happening with diesel and with home heating oil. I make the case to the Deputy and to those who are watching this debate that €280 million of their money is being used to put in place measures that we are going to fund up to the end of next February. That is a huge amount of the country's money being used to respond to issues that really matter and that are affecting the cost of living. The Deputy will say I should always spend more and do more but that cannot be the answer to every issue we face. Looking at the €11 billion of the country's money we are using, and particularly the €4 billion that is being used to deal with the cost of living, which the committee and I are so concerned about, I would make the case that that €4 billion overall, including the €281 million that is being used to bring down the cost of fuel, is an honest and credible attempt from the Government to help with the cost of living in a way that we believe we can afford and that will not create further risks for country down the road.

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