Mattie McGrath (Tipperary, Independent) | Oireachtas source

Inflation is currently at a 21-year high in Ireland. The country is now contending with the cost-of-living crisis on multiple fronts. It is causing widescale financial pain for every citizen. It is due in no small part to the Government's climate action policies. The carbon tax is the key contributing factor, with the cost of motor fuels up more than 22.6% and the cost of home heating oil up a staggering 70% in the last year alone, not to mention road diesel and agricultural diesel. For example, soaring petrol and diesel prices have been caused in large part by the Government's disjointed climate action policies, which are taxing consumers and leaning heavily on them. They are disproportionately affecting people in rural Ireland, but everybody in the country as well. The people in rural Ireland have very limited access to public transport or alternative fuel sources. Through the Government's taxation on fuel, a motorist is now paying approximately €1.70 per litre for petrol, of which a staggering €1, or 60%, goes directly into the Government coffers. That is mainly due to excise duty, VAT and carbon tax. The Government-imposed carbon tax, which is now at €41 per tonne of carbon after last October's budget, is clearly having a bruising impact on the cost of home heating oil, electricity, petrol and diesel. It is now the leading cause of inflation in Ireland. Why has the Government completely ignored the toolbox of measures developed by the European Commission, which encourages member states to cut taxes and levies on motor fuels, home heating oil and electricity bills?

The Spanish Government, for example, has used this policy and brought energy prices back to 2018 levels. This is being done by cutting taxes and capping costs. Other EU states such as Sweden have also implemented tax cutting measures.

The energy crisis brings major repercussions for every household, small business and farmer. It is financially crippling. Everyone talking about it in this House knows that. It requires meaningful and tangible State intervention. Even the unelected EU bureaucrats recognise that and have recommended that this Government and other member states take action. Why has the Taoiseach completely ignored the European Commission? Normally when the Commission says, "Jump", the Taoiseach asks, "How high?" If it told him to up taxes, they would be increased the day after, but in this case he is just ignoring the Commission. Fine Gael, Fianna Fáil and the Green Party in government have totally ignored this. High energy prices have deeply profound economic consequences and, therefore, an immediate and meaningful State intervention is required, not the paltry €100 off electricity bills. The Taoiseach needs to act immediately on the European Commission's DIY toolkit aimed at mitigating the impact of higher energy prices by slashing taxes and offering help to impacted households, motorists, the agriculture sector and all other sectors in the economy. It is needed to reverse the decision to increase the carbon tax in budget 2022 and beyond until further impact and cost-benefit analyses are carried out. The Taoiseach needs to stop talking about it and immediately take those actions. Talk is cheap.

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