Dáil debates

Wednesday, 27 April 2022

Financial Resolution No. 2: Mineral Oils Tax

 

7:07 pm

Photo of Pa DalyPa Daly (Kerry, Sinn Fein) | Oireachtas source

Over the past fortnight, on the one hand we have seen Ministers trying to muddy the water to avoid the obvious conclusion that Government policy in the shape of the carbon tax will not work and will further penalise those who are struggling most with the cost of living crisis. At the same time, backbenchers who cannot stand the heat are leaking reports of conversations in order to cover themselves locally. As with everything else, this Government has been reactive rather than proactive. We have the highest rate of inflation in years but the Government's answer has been to increase tax.

The first attempt at a solution was to reduce the VAT rate to 9%. We asked for this last year and the Government criticised us for it before changing its mind. The Government is firefighting instead of implementing a just transition. We asked the Government to cut the duty on fuel and the Government also changed its mind in that respect. We asked for a reduction in duty or excise on home heating oil but we are waiting for the Government's reaction. Not only is this Government out of touch, it is more interested in criticising the Opposition than operating a just transition.

Others have been calling for a commitment on a permanent basis to the large-scale commercial sale of turf when they know it is not an idea grounded in reality. People need to get real. Many people rely on turf in my constituency and it has not been subject to price hikes. Many who rely on this fuel are those who struggle most with the cost of living crisis and they will need to choose between freezing or going hungry, driving to college or eating. These are areas with no public transport.

Government policy for years has been to inflict extra costs on workers and families, including bin charges and property taxes. It has sought to outsource services and reduce public services at the same time. We have seen reports that a large corporation in Limerick is allowed to burn tyres as a fuel yet nothing is being done to move costs to those who can afford it. That company is burning tyres but small households will not be able to burn turf. How is that fair? We need a just transition and this is not it.

There is a better way, especially through retrofitting and ensuring policy is informed by an understanding of energy poverty. Grants must be directed towards retrofitting and away from processes that enable the rich to buy electric cars. The neoliberal approach must be rejected and Government Deputies must reflect on shifting the burden to those most able to pay.

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