Pat Rabbitte (Dublin South West, Labour)

Like Deputy Paul McGrath, I am happy to welcome this resolution. Am I correct that it is about halving the excise duty? A considerable windfall came the State's way as a result of the increase in fuel prices. A reply to a parliamentary question suggests there has been perhaps as much as a €94 million windfall to the State from the additional VAT revenue. That figure may be projected for next year rather than this year but there has been additional VAT as a result of the increase in fuel prices.

It raises a question not so much of opposing or welcoming this resolution but of what the Government might have done with a refund. The Taoiseach said it will be €22.7 million in a full year. The Exchequer is still a considerable winner at a time when the increase in fuel prices has caused acute hardship for people in disadvantaged circumstances. That is especially so for older people who depend on the fuel allowance and on a modest pension. I have received a number of letters from people around the country on the early arrival of inclement weather this year. I am sure the Taoiseach has received similar letters. One old lady said she had to spend most of the week in bed because of a lack of heating in her home in a County Cork town. The €9 per week fuel allowance which has not been increased since 2002 until today has been fairly paltry.

Does this measure have anything to do with harmonisation, North and South? I believe the International Monitoring Commission reported on the laundering of fuel North and South and so on and made specific proposals in that regard. I am curious to know if that has been a factor in the thinking behind this resolution or if it is considered that it might make that practice more difficult.

See this speech in context