Tom Barry (Cork East, Fine Gael)

I will be voting against this Bill because it provides a populist approach to a serious issue. It is poorly written and displays a staggering lack of understanding of the oil industry in providing for the Minister for Finance to review excise duty on mineral oil on a quarterly basis, taking account of the price of oil.

The price of oil fell by 28 cent per barrel today to $117 per barrel. A litre costs approximately €1.70 today. In June 2008 oil cost $147 per barrel and €1.24 per litre. Given that I am probably the biggest user of diesel oil among Oireachtas Members, this issue affects me personally. The Bill is poorly written. The issue needs to be addressed holistically if we are to regulate and examine high prices. To put the figures in perspective, the price of auto diesel has increased by 24% since 2010, while the Government's take has increased by 2%.

A barrel of oil is traded at least 500 times. Futures trading practices in EU and world markets need to be investigated. If this Bill does nothing else, I hope it will encourage Ireland to take a lead in this area. We are unfortunately all too aware of the consequences of rogue trading and over leveraging of assets and commodities by financial institutions. Speculation on commodity products like oil needs to be curbed. If speculators were required to lay down hard cash in order to make a deal, we would not see barrels being traded 500 times.

It is worrying to see commodity trading in food products. Speculation creates exaggerated peaks and troughs and damages primary food production. The food inflation that can result impacts negatively on the consumer. Cheap food prices have helped to keep inflation in check for many years but as the world population passes the 7 billion mark, that spring is set to break. Fuel and food are intrinsically connected.

The 4 cent reduction proposed in this Bill equates to a decrease of approximately 2% for the consumer but €143 million for the Government. I need not remind the House who signed us up for the programme of adjustment. If we forgo this €143 million it will have to be found elsewhere. I do not see many people volunteering to donate that sort of money.

We should be asking how high the cost of a barrel of oil needs to go before renewable energy is embraced. I recognise the problems faced by the haulage industry because I deal with it on a daily basis. It is under pressure not only from diesel prices, shocking though they may be, but also from the downturn in the businesses that contract its services. Many haulage businesses are under pressure to find enough work to meet their fixed costs. I am in favour of a standardised charging system which would allow many of our fine hauliers to stay in business. Many of them have to deal with depreciation and other operating costs. They cannot afford to change their vehicles on a regular basis but any business which relies on old equipment faces trouble.

I do not like the crocodile tears being shed across the floor. When Mary Coughlan shut down the beet industry she ignored the potential for ethanol production. We could have a thriving ethanol industry offering lower fuel prices. I do not blame the Deputies opposite for that but they should not play politics with a serious issue.

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