Michael Collins (Cork South West, Independent) | Oireachtas source

There has been more inflation and price volatility in the past 11 months than there has been in the previous 12 years combined. Fuel and electricity account for approximately half of current inflationary pressures. Green policies are the main cause of this. Inflation forecasts are unusually uncertain due to ongoing changes in the global circumstances. Covid-19 has disrupted global supply chains, transport and manufacturing, mainly because of pandemic restrictions globally. The rushed and ill-conceived policy changes being brought in by this Fianna Fáil, Fine Gael and Green Party Government to meet climate change targets are likely to increase inflationary pressures significantly in the long term, especially for fuel, according to the Parliamentary Budget Office in its January report, Inflation Issues for Ireland 2022.

Housing, land and rent prices have increased significantly due to the demand. They are likely to continue to do so depending on supply. Irish farmers are experiencing a nightmare with input costs as fertiliser prices have hit record high levels in the past several months, with all three groups of nutrients, potash, phosphate and nitrogen more than doubling, and even tripling in prices in some cases. Average fertiliser prices a year ago were high at a cost of €300 per tonne. Today, prices have skyrocketed, with calcium ammonium nitrate, CAN, fertiliser costing Irish farmers more than €600 per tonne. Urea costs more than €900 per tonne.

The latest EU data indicates that inflation across the eurozone rose by a further record 5% in December alone. This destroys the Government’s argument that inflation is transitory because increased price pressures remain high. Rising consumer costs on everything from groceries to home heating and electricity are having a crippling impact on Irish workers and families. Many households have experienced a significant income drop due to the Covid-19 restrictions and lockdowns while outgoings continue to climb. This is putting huge pressure on families and finances. It is putting many into financial crisis situations. In west Cork, every weekend there are people in my clinic offices telling me that they cannot continue and that they cannot afford to pay the bills that are being put before them.

See this speech in context