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

-----but there are regulations and frameworks under EU law that do not facilitate such measures right now. We are working with our European Union colleagues to see whether we can introduce greater flexibility in that area. The same applies to VAT. Home heating oil is not subject to excise duty but is subject to VAT at 13.5%. If we reduced that rate, we would run the risk of having to move to a higher rate, 23%, once the crisis is over because we have a derogation with regard to VAT on energy. We want to protect that derogation, which keeps the VAT rate lower than it otherwise would be, for the long term. The objective facts are that, in 2020, we spent €3.4 billion on importing fuels into this country. This year, we are spending €6.2 billion. That illustrates the extraordinary change that has occurred. The price of home heating oil has gone up by €400 in one year because of global factors and nothing else. That needs to be acknowledged as the reality of the situation.

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