Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

I want to ask the Taoiseach about the excise measures to cut fuel prices he announced last night. I welcome those measures but I want to ask him about his intentions with regard to some other measures that have recently been discussed. Cutting 15 or 20 cent off the price of a litre of diesel or petrol will really only bring us back to where we were two weeks ago with regard to prices. There is no indication that prices will stop increasing exponentially after those cuts are implemented. There have recently been reports that the Government intends to introduce a swing mechanism, that is, to implement a cut in excise duty if prices go above a certain level and an increase if they fall below that level. However, given how complicated the €200 electricity grant has proven to be, with measures that were announced in December not yet reflected in bills, you have to ask how long it would take to design and implement a swing mechanism. Perhaps the Taoiseach could update us on that.

At least for the short term, the Government needs to cap prices at the pumps at a maximum level and to reduce excise duty and VAT to sustain prices at that level. The Taoiseach said previously that VAT could not be reduced due to EU rules but peacetime rules should not apply during wartime. Extraordinary measures must be taken to try to insulate ordinary workers and families from Putin's price shocks. If prices are not capped, there is a further danger, which is the danger of price gouging. How can the Government be confident that cuts to excise duty will actually be passed on to customers? There were some anecdotal reports last night of prices on forecourts shooting up after the Government announcement. Having just begun to emerge from a pandemic, we are now in yet another unprecedented and perilous situation, that of war in Europe. The coming months will be very hard but we in this House have a duty to do all we can to ease the burden on ordinary workers, who are already struggling to cope with the increase in the cost of living.

I have a few questions. Will the Taoiseach confirm whether the Government intends to introduce a swing mechanism to moderate fuel prices? If not, will he advise as to whether the Government intends to cap fuel prices in the short term? Is the Government advocating a VAT cut as part of the EU response to this disaster and what actions is it taking in that regard? What has the Government done to guard against price gouging? Has there been any contact with the Competition and Consumer Protection Commission on this issue? Does the Government intend to take action with regard to the price of home heating oil?

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