Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I move amendment No. 2:

To delete all words after "Dáil Éireann" and substitute the following: "notes that:

— the annual rate of consumer price inflation, as measured by the European Union's (EU) harmonised index of consumer prices, has picked up sharply in recent months, reaching a multi-decade high of 5.7 per cent in December before moderating somewhat to 5 per cent in January;

— the recent increase in inflation is partly a result of temporary factors related to the pandemic, which are expected to ease gradually over time;

— the key drivers of inflation in recent months are 'base effects', the imbalance between global demand and supply that has emerged as economies re-opened, and increases in global energy prices;

— Budget 2022 contained a large range of measures to protect households from the rising cost of living, including a personal income tax package worth €520 million and a social welfare package of over €550 million;

— the fuel allowance was increased by €5 per week to compensate lower income households for the additional energy costs they are likely to incur;

— in addition to the Budget 2022 measures announced in October last, the Government has this month approved a further package of measures to the value of €505 million to mitigate the cost of living, including an increase in the energy credit to €200 including VAT, estimated to impact just over 2 million households;

— a lump sum payment of €125 on the fuel allowance will be paid to 390,000 recipients;

— there will be a temporary reduction in public transport fares of 20 per cent from the end of April to the end of the year, and this will impact approximately 800,000 daily users of Bus Éireann, Iarnród Éireann, Dublin Bus, Go Ahead, Luas, Dublin Area Rapid Transit (DART) and Local Link services;

— the reduction of the Drugs Payment Scheme from €144 to €80 will benefit just over 70,000 families;

— the Budget increase to the Working Family Payment will be brought forward from 1st June to 1st April; and

— there are reduced caps for multiple children on school transport fees to €500 per family post primary and €150 for primary school children; and

recognises that:

— carbon tax is a key pillar underpinning the Government's Climate Action Plan 2021 to halve emissions by 2030 and reach net zero no later than 2050;

— the Programme for Government: Our Shared Future committed to increasing carbon tax and the Finance Act 2020 provides for a 10-year trajectory for carbon tax increases to reach €100 per tonne of carbon dioxide by 2030;

— a significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long term provide support against fuel price impacts by reducing our reliance on fossil fuels;

— analysis undertaken using SWITCH - the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package, has confirmed that the net impact of the combined measures is progressive and households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures; and

— in the long run, the best way to protect Ireland from the impact of international fossil fuel prices is to reduce our dependence on them, and we will achieve this through the progressive decarbonisation of Irish society and through the steps that will be taken to meet the Government's commitment to reach net zero greenhouse gas emissions by 2050."

I thank the Deputies for raising this important matter in the House. Last year, most parties in the House, including Sinn Féin, voted for the historic Climate Action and Low Carbon Development (Amendment) Act 2021 with the objective of reducing emissions by 51% over a decade. I am grateful that everybody came together because this is not something we can do in a divisive or polarised way; it is something we must do together. We must work with everybody to do it. Most members of the public agree with that.

Last year, Sinn Féin produced an alternative budget while the Minister for Finance, Deputy Donohoe, was producing his mainstream budget. I read Sinn Féin's budget, just as I read the budget from the year before, and was glad to note the party was not proposing to abolish carbon tax in it. It was proposing to retain it and use it to fund its programme. I know that is what is going to happen in the future.

This motion calls out a 50% increase in the price of home heating oil. This increase is really shocking. The motion also proposes to remedy that with a 2% cut from the carbon tax. How can an increase of 50% be remedied with a 2% cut? That does not add up, and it is not something that will help people.

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