Dáil debates

Wednesday, 27 April 2022

Carbon Tax: Motion [Private Members]

 

11:27 am

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I thank the Rural Independent Group for tabling this motion. We have had several motions on the rising cost of energy and fuel and the huge impact that has on the cost of living for ordinary people. It drives some people into energy poverty. Energy poverty means that people cannot afford to heat their homes or to turn on the hot water for their shower. It means they live in fear of rising energy costs and money that might be set aside for school books, urgent home maintenance or whatever else is eaten up day by day as people try to keep themselves and their families warm. While I do not fully agree with all of the proposals in this motion, I fully support its thrust and intent, which is to lower taxation on fuel, home heating oil, gas and energy in general so that rising energy costs do not drive people into fuel poverty. It would mean that people can go to work and bring their children to school, and haulage companies, taxis, buses and the travel industry can continue to operate.

Everything has a context. As I said, this is not the first or second time that we have discussed the escalation in the cost of living or the spike in inflation. Much of this is driven by the increasing cost of fuel. While it is not our first or second time, I want to say to the Rural Independent Group that the timing of this motion is most opportune. Just overnight, I heard one report that Gazprom has cut off gas supplies to Poland and Bulgaria, while another report stated it is still flowing. We know what is happening and we know the direction of travel. We do not buy Russian gas in Ireland. We buy on the international markets, but we know that the squeeze in supply will hit all of us. Last night, in response to the threat by Gazprom, there was a 17% rise in gas prices. Norway tells us it is exporting at full capacity. Countries such as Poland and Bulgaria will now enter a shrinking market. They will look to countries like Germany to help them with their gas supply. That will mean an increase in fuel prices. Ireland, like many other countries, will be hit by these increases. That is why this motion is timely and opportune.

I understand that the Government has little or no control over the actions of Gazprom and Russia, but it has control of the taxation on fuel and energy.

I am not saying it has full control. I recognise the fact VAT rates are not fully at our discretion but other levies and taxes are. Simply removing carbon tax will not solve the problem, though it would certainly ease it. Excise and VAT are where the Government can really make a difference.

I recognise the Government has made efforts on the fuel allowance and that is welcome for the approximately 500,000 people who receive it. However, there are many other families who are struggling and do not receive fuel allowance. Time and time again I have raised the issue that carer's allowance is not a qualifying payment for fuel allowance. Just two weeks ago I was happy to facilitate the Vincentian Partnership for Social Justice and Family Carers Ireland when they launched a report on the cost of caring in Ireland. It is one of many but the cost of caring is exacerbated by increases in the cost of transport and heating and it would make a huge difference to families who care if carer's allowance was made a qualifying payment for fuel allowance.

We also have the €200 energy credit and while I have heard many people speak about all the millionaires getting it most of the people I know who receive it will be glad to. However, most of those people also agree these type of payments need to be better targeted and not just to those who are happy to get it. We need more targeted payments. We need to ensure carer's allowance is a qualifying payment for fuel allowance and crucially, as this motion asks, we need a decrease in tax and duties on fuel.

As a final point, no debate on fuel poverty and the cost of energy, certainly in my view, would be complete without reference to the ongoing debacle on the sale of turf. The most recent proposal I have heard is if you live in a community of 500 or more people you cannot burn turf but you can if you live in a community of fewer. I do not know about the Minister of State's constituency but I have looked at my own. I looked at two towns in north Sligo that are 9 km apart. In Cliffony you can burn turf but if you are 9 km away in Grange, which has just a few more people, you cannot. In Leitrim, if you live in Drumsna you can burn turf but if you live in Drumod, which is fewer than 10 km away up the road, you cannot. It is nonsense, it unenforceable and it makes a mockery of any legislation or regulation we might propose. I therefore ask that proposal be set aside.

The Minister, Deputy Eamon Ryan, spoke about consultation. I do not know if he understands people are cutting turf now. That turf will be sold in September or October. It is too late for consultation. There are possible solutions and the Independents will be bringing forward a motion next week around such solutions relating to the levels of moisture in turf. Maybe if we look at the science we can find solutions here. We need a just transition for the 4% to 5% of households that burn turf, not a half-baked announcement without proper planning, proper research and without any impact assessment. It is not good government. I look forward to hearing proposals that are reasonable, that will guarantee a just transition and will work.

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