Dáil debates

Wednesday, 10 November 2021

Rising Costs and Supply Security for Fuel and Energy: Motion [Private Members]

 

11:22 am

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent) | Oireachtas source

I thank the Rural Independent Group for tabling the motion and exercising this debate. It is important we recognise the increased difficulties that are arising for our population as part of our new climate action policies and the fluctuations occurring in international energy prices. Indeed, further motor fuel, electricity and gas price increases are on the way, and we may yet have also to contend with additional Brexit breakdown matters. This is putting further economic pressure on vulnerable families in the State and increasing household costs. Carbon tax levies on fuels are placing a significant hardship on rural families, as the Minister of State will know well, and on those with fewer public transport options.

Turning to some of the disjointed policies occurring under our transport initiatives, the Government has removed the rebate of €2,500 to support plug-in hybrid cars, which allowed many people to buy an energy-efficient car, plug it in at night and use it, without having to revert to fossil fuels. By doing that, it has taken away that car from the matrix of purchasing options for people.

Indeed, there is increased tax now on new cars, making changeovers more difficult. It means there will continue to be more heavier polluting cars left in the fleet. The roll-out of electric charging networks in rural areas is making the electric car almost impossible as a purchase decision. There is an absence of policy to continue to support the purchase of petrol hybrids to allow a graduated roll-in of electric cars. This is also feeding into our energy costs. We have no policy regarding the generation of hydrogen technology for heavy vehicles. I am sure the Minister of State has heard many times about the haulage and transport components that are adding significant costs to the household consumer budget. We have to examine these matters.

There is also the overall electric energy policy into the future. We are told that the grid output is to rise by 50%, with a mix of 70% renewables and 30% gas. There is currently talk about offshore fixed-bottom and floating platforms, but they are years away. We have yet to designate a wind port in this country. I have spoken a number of times about the need to designate Rosslare harbour as the most viable harbour for this for the east and south coasts. What are we waiting for? We will not meet the offshore wind goals at the rate we are going at present. That means we will have to increase fossil fuels, which means a further carbon levy will be levied on vulnerable families.

Beyond that, there is carbon sequestration and carbon trading. I heard the Minister for Agriculture, Food and the Marine speak recently about his desire to see this get up and going. We need this for the agriculture sector and for the rural economy to try to impact energy prices. Indeed, 20% of the carbon levy is paid to agriculture to reduce emissions. This must be ring-fenced for research activity. It must go into the agriculture sector but it must go into research. A very telling research proposal from Waterford Institute of Technology, WIT, on horticulture, agriculture and forestry has been sent to Science Foundation Ireland. I believe there must be ministerial effort to ensure that it is supported as part of our climate action policy into the future.

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