Bernard Durkan (Kildare North, Fine Gael)

I give a guarded welcome to this proposal on the basis that it reflects a response to a need. However, the response is not enough due to the degree to which fuel oil prices have increased, particularly over the past year. The cost of home heating oil has increased by almost 30% in the past 12 months. Other speakers referred to people on a fixed income who have great difficulty in meeting their household heating requirements in respect of oil. This measure, unfortunately, does not reflect the needs in regard to this issue.

My colleagues already referred to the fact that the single biggest way of making a saving in terms of home heating oils and other fossil fuels is by way of conservation and insulation of domestic dwellings, public buildings and offices. Notwithstanding other provisions in the budget on biofuels, the measures outlined fall far short of what is required at this time by way of encouraging alternative energy. I regret the missed opportunity to make a greater declaration of intent in this area and to address existing concerns.

Transport costs have increased at a phenomenal rate in the past 12 months. Every commodity delivered depends on transport. Road diesel costs have increased dramatically in the past year. This concession could easily have been extended to this area. The counter argument that will be put forward is that if one reduces excise duty it encourages oil companies to increase their share of the take but the fact is that consumers are at the end of the line and whatever concessions are made will in some way be reflected in what they pay. Given that such a heavy cost is placed on consumers in general and the industrial sector in particular, and since society depends on transport to such an extent, it would have been innovative and beneficial to the economy if some indication were made as to what might happen in the event of oil prices increasing further. Deputy Paul McGrath referred to road hauliers who are increasingly finding it difficult to make a living. Fuel costs are one of the major factors that have a bearing on their income.

I welcome the concession that has been made, which aims to address the issue of smuggling and, to a certain extent, global warming, to which my colleagues also referred. Oil imports and conservation need to be addressed in the energy Bill, to which I referred on several occasions in recent weeks, in a much more dramatic fashion than has been the case in the budget.

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