Dáil debates

Wednesday, 2 September 2020

Ceisteanna ó Cheannairí - Leaders' Questions

 

2:30 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I fully accept that this news will come as a blow to many consumers in the light of the very significant and severe economic environment within which we are operating. It is not a Government decision. As the Deputy noted at the conclusion of her remarks, the regulators of such utilities and the companies themselves are centre stage in decisions of this kind.

That said, I have no doubt that the Minister and the Government will engage with Electric Ireland on this matter and its overall plans. The Government will work to see how we can continue to alleviate the pressures that many people are under as a result of the global pandemic and the economic fallout from it. The Government intervention to date has, by any yardstick, been unprecedented in terms of endeavouring to help people who are suffering as a result of the pandemic, particularly those who have lost jobs and companies that continue to employ people. Right now, up to 600,000 people are still on the wage subsidy scheme or the pandemic unemployment payment, which is a very significant number. Although certain sectors of the economy have managed to sustain, particularly the knowledge side of the economy, life sciences and technology companies, we know that the hospitality, aviation and other sectors, including the arts and those across the board in tourism, have taken a significant hit.

The collapse of international tourism, for example, has resulted in significant job losses in the services sector, in particular in the hospitality sector, and other areas where wages would not have been too high where people are now on unemployment or on the pandemic payment. In that context, we take the point that any increase in charges negatively affects people. That is why the VAT rate came down yesterday as part of the July stimulus which will be of some help in relation to people on low incomes and in terms of the wider range of charges that people face through their daily lives.

In terms of the forthcoming budget, Government will look actively at how it can support people on low incomes and people on social protection. The Deputy will be aware that in the context of carbon tax, one of the key pillars of the Government's response is to provide for an avoidance of fuel poverty and to provide from the funds that would be generated generous allowances to enable people to deal with the impact of such attacks on the expenditure that they have to incur in their daily lives.

We have been meeting regularly in relation to the implementation and delivery of a wide range of measures that were contained in the July stimulus programme which we announced less than six weeks ago. It involves an injection of close to €8 billion into the economy. We are doing everything we possibly can to get spending delivered on key projects from housing to education right across the board and through that to create employment and opportunities for people. The almost €400 million that we provided to education has been instrumental in a range of minor works carried out in schools across the country, for example, which has enabled people to get work and to get opportunities to ply their trade. That has been very effective. Our provision for housing voids, for example, involving over 2,000 by the end of the year, is also with a view to giving people work. That said, we will engage with Electric Ireland. We will seek to do everything we possibly can to support people who are facing significant household bills across the board.

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