Oireachtas Joint and Select Committees

Wednesday, 29 March 2023

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

Finance Bill 2023: Committee Stage

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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Although we tabled no amendments, the section deals with reducing VAT rates to electricity, gas and the hospitality and tourism sectors. I spoke at length regarding the inequality of having a measure for those who use gas primarily, and nothing for those who use home heating oil, so I will not repeat myself. We see from a reply to a parliamentary question that while the projected cost of the reduced VAT rate applicable to electricity and gas, up until the end of October is €86 million, the net benefit to a household is €38 in respect of electricity. That is just under €5 per month. With gas, it is less; the total benefit during the whole period would be €26 for the average consumption per household according to a parliamentary question that was replied to by the Minister.

We are looking at reduced VAT on electricity, but the Government has refused to examine what is happening in other countries regarding the certainty that governments are providing. Members that share the Eurogroup with the Minister are providing certainty for households in the form of price caps on energy bills. This happened in more countries over the winter period. Germany is one of the latest countries to announce a price cap for their citizens. I do not suggest that we replicate exactly what Germany, the Netherlands, Austria or many other countries are doing, but the principle has been adopted in many countries across Europe. It provides a sense of certainty. In some cases, it is a case where 85% of someone's electricity consumption last year will be priced at this rate. Then, for example, the Netherlands looks to see what the companies are buying the gas and electricity in for, and refunding them appropriately, not the "blank cheque" kind of sloganeering that Fine Gael has been involved in. It has suggested that this type of measure is about blank cheques. If it was, then why are Germany, the Netherlands and Austria doing it? Why has France done a version of it? Why are so many countries across Europe doing this?

It was reported so in the media that the Government would look at this type of measure. Has the Minister examined what Germany is doing? Has he assessed whether that would be appropriate in an Irish context? If not, will the Minister take an opportunity to speak to his colleagues on the Eurogroup and ask them what they are doing regarding energy costs for their citizens, and how that could be adopted, reshaped, twisted or altered in an Irish context to provide a meaningful support to households and to provide certainty during very volatile periods?