Dáil debates

Wednesday, 9 February 2022

Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2022: Committee and Remaining Stages

 

5:37 pm

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

The Social Democrats will be supporting the Sinn Féin amendment. It is a very important amendment and I am pleased to see it included. I also raise the issue of the short timeframe associated with the Bill. I know it includes the term "emergency measures" in its Title. There was no pre-legislative scrutiny and the timeframes are very short. I also believe it did not need to be such an emergency measure. It was clear from last September that we were facing a serious fuel crisis and a cost-of-living crisis. In September, I asked for us to have statements in the Dáil on the rising cost of energy prices, but that was not allowed. If some foresight and planning had been put in place at that point for what was clearly coming down the road, perhaps this Bill might not have needed to have been an emergency measure Bill and we could have gone through a full and proper process in dealing with it.

The amendments spell out clearly what the issues are with the Bill. When talking about the inflation crisis we are facing, the Governor of the Central Bank was very clear that there were three key drivers - transport, rent and energy costs. He also made it very clear that the inflation crisis was not impacting on everybody in the same way and that some people were suffering far more than others, particularly vulnerable people living in poverty. It is unfortunate that targeted measures were not put in place to assist the people who are in most need of this support and instead this broad-brush approach was taken.

On Second Stage, I mentioned that it was not targeted, and the explanation I was given was that from an administrative perspective it is cumbersome or difficult to work out. However, it cannot be rocket science to exclude from the scheme people with multiple houses or people who have holiday homes. It sends completely the wrong message that the 62,000 people who have holiday homes will get €100 for a home where very little energy is used and it is also their second home. That sends out a very poor message to people who are really struggling at the moment and are making choices between food on the table, fuel or perhaps paying rent or the mortgage. We need a more targeted approach.

In the long term, things like the retrofitting plan will make households more secure from energy price rises. However, for what needs to be put in place at the moment, while many people welcome this Bill, it will not be enough. The Government could introduce measures that would be highly targeted and would seek to protect people who are most vulnerable to these cost increases. I have written to the Commission for the Regulation of Utilities on this matter. It needs to extend its moratorium on disconnections which, I understand, is due to end on 11 March. There is a risk that we could have a cold snap over the next month or two which would put people in a very difficult position.

The Government should also extend the fuel allowance beyond March. It should also link it to the working family payment because many working people are struggling to meet these price increases. The exceptional needs payment should be doubled to assist those people. We also need to recognise that it is not just people in receipt of social supports who will be hit by this rising cost of energy and rising inflation. The Social Democrats have proposed that a refundable tax credit of €300 be provided for those earning €50,000 a year or less. The Government could introduce a range of measures because one measure will not be sufficient for people. Even if it were highly targeted, some people would fall outside it.

I agree with what Deputy Bacik said about those who are renting. It is important that this money is passed on to people who are renting and gets into the pockets of the people who are paying the bill and not just the ones who from an administrative perspective are receiving the payment.

I have a feeling that we will be back again seeking to extend the provisions of the Bill at some stage. I ask the Minister to look at those amendments and suggestions. We do not know what is going to happen on the global energy market. If something like this happens again, we should not fall foul of this again and we should not allow people who can afford two homes to get very valuable State support.

The fact that the Bill is not meeting people's needs and is not doing what people need it to do has opened up the discourse on the carbon tax. It has turned the carbon tax into an environmental bogeyman. People feel that carbon tax is the problem, which is taking away from the importance of the carbon tax in actually paying for retrofitting schemes and supporting people to make the just transition, allowing us to take the actions needed to address climate change. The lack of proactively by the Government on the issue has allowed for that discourse to happen which is really unfortunate.

The entire carbon tax yield needs to be paid back into climate action, allowing vulnerable people and people who need to take those measures-----

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