Kevin Humphreys (Dublin South East, Labour)

Every Deputy is aware of the cost to hard pressed families of filling their tanks with petrol but a reduction of 4 cent per litre will not address the problem. Petrol and diesel prices have risen across the world and will continue to do so.

The estimated cost of the measures proposed by Fianna Fáil is €178 million per annum. If the Deputies opposite want to do something they should show us how where we can find that money. Excise duty is a static charge which does not change when oil prices increases. The additional VAT brings approximately €15.5 million in a full year. It is reckless to propose this measure without identifying other areas where the money can be raised. We are going back to the days of Charlie McCreevy supply side economics, which caused the disaster.

The price of diesel has increased by 38 cent since 2010 and the budget increases in 2011 and 2012 added a further 3.5 cent. Petrol and diesel costs at least 10 cent less than in the UK and countries like Italy levy higher fuel taxes despite cheaper living costs. The price of oil is the main problem not the tax rate. The increase in the cost of oil has been driven by several factors. Global demand has increased by 4% since 2005 despite a 7% fall in western countries. Problems in the Middle East have disturbed security of supply and quantitative easing by the US Federal Reserve has also been blamed for increasing prices because oil is priced in dollars.

In past recessions a fall in demand helped to drive recovery but global demand has continued to rise, particularly in Asia. If we learn anything from this price surge it is that we have to wean ourselves from fossil fuels. The actions needed to reduce consumption include car maintenance and ensuring proper tire pressure. The bad planning that obtained in the greater Dublin area has had impacted on families which have to travel long distances to work. That planning was driven by the factors unearthed in the tribunals.

This is an irresponsible Bill because it does not consider the impact on the economy. We have to find a better mechanism for providing public transport. People who live in rural areas are harshly affected by fuel prices but lowering prices for everyone is not the solution. We seek realistic proposals. Some of Deputy Dooley's colleagues believe in realistic solutions but this Bill will not solve anything if it takes €170 million out of the Exchequer.

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