Dáil debates

Wednesday, 6 December 2006

Financial Resolution No. 2: Mineral Oils

 

6:00 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)

I do not take any great issue with either of these resolutions. The reduction in excise duty in respect of home heating oil is timely, appropriate and necessary. Fuel poverty is a major issue for a good number of families. It is also an issue for some elderly people. As has been remarked, and notwithstanding the apparent volte face by the regulator in respect of gas and electricity prices, the extent of fuel price increases is significant. It is fine to increase the fuel allowance by €4 to €18. That is a welcome development but this remains an issue for many people because only a small number of those affected qualify for fuel allowance. There are many people on low incomes who will not be eligible for the allowance. This reduction in the excise duty on home heating oil is welcome.

I am bound to say that Deputy Ardagh is right regarding the scientific evidence, but the 50 cent increase in the price of cigarettes is hardly immaterial for a senior citizen who has long since become addicted. It will be painful, but on the scientific evidence and given that we want to encourage people to stop and discourage the young from taking up the habit, it is very hard to muster any argument against it.

There used to be debates on the issue in this House, and one could expect Deputies from Dundalk and my own constituency, where Gallaher's, which has now sadly been restructured out of existence, was a good employer, to argue against tax rises. However, it is very hard to say that the Minister is not correct in introducing this disincentive. Medical provision for the cancers that ensue is enormously costly. It carries a terrible price in human health, and if we were successful in dissuading only a small number of young people from embarking on the habit, it would be worthwhile. I therefore have no difficulty in assenting to the two resolutions.

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