Michael Kitt (Galway East, Fianna Fail)

I also commend Deputy Dooley on his introduction of this Bill. It is a progressive and interesting proposal that he has put before the House. People are concerned about the price of fuel, which has reached €1.70 for a litre of petrol, and every family is discussing the topic. The measure proposed by Deputy Dooley is modest. Like other Deputies, I have received hundreds of e-mails and other messages on this topic. The e-mail I liked best contained just one line: "Please vote for the reduction of 5 cent in fuel. We need every break we can get." That is how many motorists feel now; they need a break. The proposal for a 5 cent reduction in excise duty per litre of fuel is a positive one.

Deputy Dooley's Bill also proposes that fuel prices be reviewed every three months rather than every year, which is a good idea. Other Governments should have done this, but there is no point in saying that now. We have a Bill in front of us that makes sense. We should consider the cost of oil on world markets, which is changing all the time. The Government needs the flexibility to respond to this on a regular basis, and this Bill would allow any Government to react quickly to developing situations in the marketplace. Petrol and diesel are often called the old reliables, and Governments in the past have often treated them as such, increasing excise costs often, which has resulted in an unfair burden on people. I can see how these price increases have affected people in my rural constituency.

I was interested in an article in The Irish Times today about the fuel price tracking website pumps.ie. According to the website, the average price of a litre of petrol across the State yesterday was €1.70, while the average cost of a litre of diesel was €1.60. Less than three months ago, the same website put the average price of a litre of petrol at €1.55, which represents a difference of 15 cent. In July 2008, when oil peaked at $147 per barrel on the international markets, the average price of a litre of petrol in Ireland was €1.36, which is 34 cent less than today. There has certainly been an increase, and the biggest driver of higher fuel prices in recent months has been Government taxes. Since the emergency budget back in 2008 there have been five tax increases, including an increase in VAT, the introduction of a carbon tax and three excise duty hikes, which have added 21 cent to the price of a litre of fuel. Motorists, who contribute 10% of all Exchequer revenue, including excise duty, VAT and VRT, in addition to €1 billion in motor taxes, have been badly hit by this. Even if the figure associated with this measure was €145 million, as Deputy Dooley said, the provision would certainly act as a stimulus to the economy, with a boost in consumer confidence.

We are entering what is known as the peak summer driving season. Hard-pressed motorists deserve a break, as that e-mail suggested to me. The situation is becoming more acute. Not only motorists but also farmers and small businesses across the country need some relief from the costs involved in paying for fuel. As the cost of fuel rises, people feel they are being squeezed from every angle. I notice the Fair Fuel campaign in the UK has highlighted the potential positive impact on the economy of a reduction in fuel duty. If we consider the hardship caused to people, look at jobs and agriculture and think of the contractors we met today, it is important that we do this and imperative that we move this Bill through the House.

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