Michael McNamara (Clare, Independent) | Oireachtas source

Sometimes it is not immediately apparent how important this is to people. These fuel prices are a massive inconvenience for people who live in cities if they cannot drive, but for people who live in rural areas life becomes an impossibility, so reliant have we become on vehicles. It is in that context that I urge the Minister to examine the VAT rate. The Taoiseach has said that we cannot reduce the VAT rate because of EU rules and I accept his bona fides when he says that if we ask for a reduction in the VAT rate, if it is reimposed it will be at a higher level. However, we are in an emergency situation so we have to consider that, even if it comes at the price of a higher VAT rate in the future. Poland recently abolished the VAT rate, so it can be done, although I accept the Minister's bona fides when he says that it comes at a cost. We are rapidly approaching the point where we have to consider that cost. People will simply be unable to drive to work if this continues.

The oil price per barrel is at approximately $130 in recent days. Putin is saying it could rise to $300. I appreciate that is sabre-rattling at a time of war but the longer this war goes on, there is a likelihood of higher fuel prices. I note and greatly welcome the fact that crude oil prices seem to have dropped very slightly today. Hopefully, that will continue. Poland applied to the EU to drop its VAT rate in December, and it did it today. I hope the Minister is not ruling that measure out. We have to keep that possibility on the cards because if prices were to go the way Putin says they will go, we would be looking €4 or €5 per litre in the forecourts. People simply would not be able to go to work and our economy, particularly the rural economy, would not be able to function if that were the case.

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