Dáil debates

Tuesday, 14 October 2008

Financial Resolution No. 8: Excise Duty (Betting Tax)

 

8:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)

Deputy Timmins wondered how much money in excise duty on petrol is gathered up by the Government. The increase in petrol prices provides rich pickings for the Government. It obtains 55% of the cost of a litre of petrol, while 37% of the cost is due to refining the oil. It is outrageous that the Government can go back to the well and add to its take when it is already receiving such a substantial source of income from this area. Ministers do not seem to understand how difficult it is for commuters who do not have an alternative to using the car. The public transport infrastructure that should be there is something the Green Party Deputies keep talking about, but they have totally failed to make any difference if this budget is anything to go by. The people who depend on driving their private cars are already paying high petrol prices.

The Joint Committee on Climate Change and Energy Security has carefully examined why petrol prices do not seem to follow oil prices when they fall. They have come down to some extent, but the Government take is inordinately high. The cost of diesel has uniquely been higher than that of petrol, but rather than deal with that issue, the Government has simply decided to raise the price of petrol. That will cause difficulties for people who are trying to manage on incomes that are limited. When the significant increase in tax from this source was pointed out to the Taoiseach, he said they are not spending money on other things. However, it does raise the issue of fuel poverty. The most disappointing aspect to the budget is the fact that there is no recognition of the reality of fuel poverty. People are facing into winter with significantly increased costs in electricity and gas — there are more increases to come — and we get a derisory €2 increase in the fuel allowance. There is nothing else to support people who are struggling.

There is a reference in the section on climate change to the programme known as the home energy savings scheme. This is about insulation. We have argued strenuously for a national insulation programme that would provide energy efficiency across the board and would provide work for many construction workers. That would make sense at a time when we have such difficulties in construction and in meeting our climate change targets. There is a con trick in these figures. We were told in the budget speech that €15 million is going into this energy efficiency scheme, but then we discover in the appendices of the budget that €15 million is being taken out of the greener homes scheme. Windscale was changed to Sellafield, but the leopard never changed its spots. In this case, the Government is putting money into one scheme which is supposed to save energy and taking it away from another scheme which is supposed to save energy. It is a sham.

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