Ms Michelle Murphy:

I thank the Deputy. The report shows the impact of the cost of housing being one of the key drivers in the cost of living. The Parliamentary Budget Office report referred to by Dr. Healy also notes that housing was one of the drivers. As outlined by Dr. McDonnell, CPI underestimates the impact on low-income households. When it comes to subvention, we fall behind other European countries in terms of childcare, public transport and affordable housing. It is going to take a lot more than €1.3 billion to address the gaps we have in the short-term in terms of even meeting the average in terms of our European peers. In the meantime, we still have to support those households that are on low incomes. We have consistently argued for a floor of universal basic income and universal basic services below which nobody should fall.

We do not see these two things as being in competition with each other. Looking at indexation, it is how incomes are supported. Over time, if there is investment in, for example, subsidised childcare, social and affordable housing and public transport, that will have an impact in changes to the cost of living, and you can look again at indexation.

In terms of the areas that the Deputy mentioned, substantial investment capital investment. There is a question as to how that investment will support our climate goals and also is impact in terms of reduction of living costs. However, we are talking about indexation. One of the things that any indexation process that is designed will also have to somehow accommodate the impact our climate transition on low income households, particularly households in fuel poverty, and how the indexation system can support them.