Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy for raising the topical issue of the cost of living. In the earlier part of his contribution, the Deputy referred to the impact that rising costs have had on a particular company in his county. I acknowledge that. Inflation has risen significantly around the world in recent months, mainly driven by higher energy prices. Because of the Ukraine-Russia war, costs are likely to go up even more in the short term.

Inflation in Ireland was 5.5% in December and eased to 5% in January. The cost of electricity, gas, home-heating oil, petrol, diesel, motor cars and rents were the main contributors to inflation. Some food products, including bread, pasta, soft drinks and coffee, have also risen markedly in price. In 2021, the country spent €6.2 billion on imported fuels compared with €3.4 billion in 2020. That illustrates the scale of the increase.

It was an increase of €2.8 billion, which reflects the higher prices on the international market. We spent an additional €1.5 billion on imported oil and €1 billion on imported gas last year. A year ago, a barrel of oil was $64 on the international market; today, it costs $110. Oil prices have risen by $14 a barrel over the past week alone. Natural gas costs 400p a therm today on international markets, compared with 40p a therm last March. Gas prices have soared by 220p a therm over the past week. These are enormous increases in a very short period.

The most recent Central Statistics Office, CSO, data on wages show average hourly earnings in quarter 4 of 2021 were up by about 2.6% from a year earlier and up 8.2% from quarter 4 of 2019. As I said earlier, if we look at the United Kingdom and the US, inflation has been at multi-decade highs recently. Euro area inflation has gone up again, with the figures today showing it is at about 5.8%, if I am not mistaken.

We are in a very difficult situation regarding the costs of living. The Government has responded. Since coming into office, we have raised the fuel allowance from approximately €630 to €1,039. We have been in office for approximately one year and seven months. If we include the €200 electricity payment, support for those on low incomes has now almost doubled to €1,239. That will help to cushion the blow for people on low incomes. In addition, we have taken measures, as the Deputy acknowledged, in respect of the drug payment schemes, the front-loading of the working family payment and the reduction in public transport fares from the end of April, which will benefit 800,000 people.

The minimum unit pricing of alcohol came into effect on 4 January. I know the Deputy's heart is in the right place in respect of this matter and I know the point he is making. The policy is designed to reduce alcohol consumption.

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