Dáil debates

Wednesday, 7 December 2005

Financial Resolution No. 1: Mineral Oils.

 

8:00 pm

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

I welcome the proposition in Financial Resolution No. 1 and any move towards the harmonisation of prices for home heating oils, North and South. This will be welcomed by consumers south of the Border. I want to see harmonisation of prices among a raft of other considerations on an island-wide basis. The reduction of almost 50% in the excise duty on kerosene from €31.74 to €16 per 1,000 litres and of just over 50% on liquified petroleum gas from €20.86 to €10 per 1,000 litres is a welcome and substantial reduction in the excise duty. Is this the first step or is it the only one towards the harmonisation of rates applying North and South because I am of the view more needs to be done? Will the Taoiseach outline that detail? I would have preferred a situation in which the difference was eliminated.

While this will be welcome from a consumer point of view, a critical issue was not taken on board in the Minister's Budget Statement which relates to the same area, namely, home heating fuels. The fuel allowance has been increased from €9 to €14 per week with effect from the first week in January. While the increase is welcome, although it should have been doubled to €18, there is another very important factor, namely, oil delivery companies will not make a delivery worth less than €200 and sometimes more depending on what part of the country in which one lives. Many senior citizens in local authority tenancies converted to oil-fired central heating who heretofore only received €9 per week would have to wait X number of weeks before being able to pay €200. Could they always have soundly set aside that €9 in order to accumulate the minimum price payable for a delivery of oil? One can see the difficulty. The allowance will increase to €14. I wish it were more, but whatever the level of increase, it should be paid upfront. It might be best paid in a credit form so that it would then be spent on what it was intended for, and that heating would be the consequence of the provision. Unfortunately, in some cases, it is not always the result and for the very reason that I have explained in regard to the minimum delivery levels that oil distribution companies operate. Perhaps in the Taoiseach's neck of the woods the minimum delivery is at an even higher level than in my constituency.

I urge the Taoiseach to take this on board. It is not sufficient to increase the fuel allowance, it must also be brought forward as an upfront payment which would be made at the outset. It should be paid in advance over X number of weeks so people can afford to have a delivery of the fuel of their choice appropriate to their needs. I welcome the measure and I would appreciate if the Taoiseach would explain if further steps are intended.

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