Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

I thank Deputy Nash for bringing forward this motion, which we support. Some of us have a living memory of significant inflationary pressures. I remember the impact on the country and quality of life during the 1970s and 1980s. It started with the oil crisis in 1973, when prices quadrupled. There was an immediate reduction in the living standards of people. By 1975, inflation had risen to 21%. It reduced over the following years but there was a rise again thereafter and, by 1981, it was back to 20.3%. By 1985, it had reduced to 5.5%. What could be bought for €100 in 1976 would cost €683 today. That is what inflation does.

It does not stop at energy prices. The cost to deliver items to shops rises and increases in the cost of food are partly a consequence of that. The staples are increasing in price, including bread, pasta and milk. That will have a significant impact, particularly on families with a number of children. We must all be concerned about what is happening on the Russia-Ukraine border because we cannot dismiss it. There is a real prospect of further harm.

Even before this spike in inflation, I raised these issues and pointed out that our living costs, before this inflationary spike, were 36% above the EU average. Ours are the highest house prices in Europe. We have the fourth highest energy prices in Europe. We might say we are an island on the west coast of Europe and that is the reason this has happened. However, prices can be compared between the North and South. If we compare house prices between Belfast and Dublin, Cork and Derry, there is a significant difference. Look at food prices. I do not accept that as an argument and nor do I accept that nothing can be done.

This is a Europe-wide, international crisis. We accept that. However, does that not mean there is an opportunity to do something collectively about these issues? Inflation will equally have a bearing on household bills in other jurisdictions.

People are genuinely choosing between heating their homes and putting food on the table. They are genuinely making that decision, as we heard from the Society of St. Vincent de Paul yesterday. A number of people have made contact with the Society of St. Vincent de Paul. This is not something we can ignore. It is having a direct impact not only on quality of life but also on the health of the nation.

I agree with Deputy Sherlock's point about the cost of energy for businesses. I raised the issue with the Tánaiste some months ago. I raised the matter of one particular local business with more than 100 employees. That business told me it would not lose business but would not win any new business as a consequence of the rise in the cost of energy.

The Government is gaining by virtue of the fact that increased prices bring in increased levels of VAT. A newspaper today reported that Energia paid out €30 million in dividends as profits soared during the last financial year. This is not a one-way street. The Government must take more immediate action and recognise we have a problem.

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