Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The invasion of Ukraine has exacerbated the inflationary pressures that Ireland and other economies were already experiencing in the wake of the supply chain disruptions brought about as a result of the pandemic. The war and the necessary introduction of sanctions against Russia is also disrupting supply chains and leading to large rises in international prices for energy, food and other commodities. The Government recognises the additional challenge these rising prices represent for households and businesses as many are still trying to recover from the effects of the Covid-19 pandemic. Ireland imports over 70% of the energy we use and the Government cannot fully insulate individuals and businesses from developments in international energy markets that are outside of our control. However, the Government has already implemented several measures to help to reduce the impact of energy price rises on enterprises and households. These include temporary reductions in excise duties charged of 20 cent per litre of petrol and 15 cent per litre of diesel. This has been of significant benefit to businesses as well as householders. We have also introduced a 2 cent per litre reduction in the excise duty levied on marked gas oil or green diesel. The estimated cost of these measures to benefit households, businesses and farmers is approximately €320 million. For hauliers, a temporary grant scheme will provide a payment of €100 per week to help mitigate the impacts of the rising price of fuel. This scheme will operate for a period of eight weeks and is valued at €18 million. There has also been a temporary targeted intervention package for the tillage sector to the value of €12.2 million in response to the impact on the agrifood sector.

My Department is working with the Department of the Environment, Climate and Communications in leading consultations with industry to learn about the specific impacts of higher costs on Irish businesses and to hear their concerns and perspectives on the appropriate and most effective tools for policy action. This follows on from a recent meeting of the enterprise forum that I convened to hear at first hand how the war in Ukraine is affecting businesses in Ireland. The three main issues raised at that meeting were the difficulties in supply chains in Europe and around the world, recent increases in the cost of raw materials and foodstuffs, and energy security and prices.

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