Dáil debates

Tuesday, 29 March 2022

Ceisteanna ó Cheannairí - Leaders' Questions

 

2:00 pm

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein) | Oireachtas source

Workers and families face a cost of living crisis that demands an urgent response. Last week, Energia became the third energy supplier this year to announce a price increase for its customers. The increase will come into effect next month and it will add €427 to the yearly household bill. This is the fourth price hike announced by Energia in the past year and it comes just a week after Bord Gáis announced a massive price increase that will add a €775 additionality to the yearly household bills of its customers. These are frightening numbers and they come after 35 energy price hikes announced last year. Without action, low- and middle-income households face an income squeeze that they will struggle to withstand and, indeed, many are already unable to cope. The Society of St. Vincent de Paul has seen requests for help soar, with households facing an impossible and unacceptable choice between keeping the heating on and doing the weekly food shop.

Last week, the Central Bank told an Teachta Pearse Doherty that households would see energy and food costs rise by €1,900 this year. Workers and families cannot bear these costs without very significant financial hardship. They need help. We recognise the causes of this cost of living crisis and we know that households cannot be fully insulated from these costs, but they can and they must be supported as much as possible. The good news is that more can be done. Indeed, the responsibility of the Government is to ensure that more is done. Caithfear níos mó tacaíochta a thabhairt do theaghlaigh. Is féidir níos mó a dhéanamh agus is é cúram an Rialtais cinntiú go ndéantar níos mó. Táimid tar éis insint don Taoiseach cad is féidir a dhéanamh.

For five months now, we in Sinn Féin have been calling on the Government and the Minister for Finance to work with the European Commission to remove VAT from household energy bills, and for months that proposal has been dismissed. I welcome the fact that the Taoiseach has now changed position and that he is now, finally, engaging with the Commission to allow for a reduction or a removal in the level of VAT applied to fuels, just as we have been calling for. The conclusions published after the meeting of the European Council last week provide scope to engage with the Commission further on the issue of VAT.

What specific ask has the Taoiseach made of the Commission? Has he sought scope for the Government to reduce VAT on domestic energy bills to zero for a period of time, as we have asked? Has the Government applied for a derogation from the current VAT rules? When does the Taoiseach expect this process to be concluded so customers can get the break they need?

The Government could take measures now to reduce the cost of home heating oil for hundreds of thousands of households. This month the cost of filling a tank rose to more than €1,600. Many households cannot afford this. We in Sinn Féin have called on the Taoiseach to remove excise duty on home heating oil. Up to now he has ruled this out but given the pressure so many workers and families are under, will he change his position and provide them with additional support by removing excise duty from home heating oil?

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