Dáil debates

Tuesday, 31 May 2022

Rising Food Prices: Motion (Resumed) [Private Members]

 

8:20 pm

Photo of Verona MurphyVerona Murphy (Wexford, Independent) | Oireachtas source

I thank Sinn Féin for bringing forward this motion, allowing us time to highlight the increasing price of food and how that problem has been made worse by Government actions. I again feel it is necessary to draw attention to the increase in carbon tax as one of the causes of price increases everywhere, including for food. To take it from its origin, the farmers who sow the crops have been hit with increased fuel costs via the carbon tax. Farmers are also faced with higher costs on the shelves because what they buy in the agricultural shop or hardware shop has increased in cost due to higher transport costs, caused in part by carbon taxes. Before ever sowing the crop, it is more expensive to plough, harrow and prepare for sowing. The carbon tax also makes it more expensive to sow, maintain and harvest everything. It is then more expensive for those transporting the produce to the factories and the mills. When the final products are produced, it is more expensive to transport them to wholesalers and retailers all over the country. All those extra costs are paid by the consumer when they take the finished item from the shelf and bring it to the cash register. Food costs are rising by 7.5% year on year. As I said before, it is the poorest people who are hit hardest by this. They are the ones who have to make tough choices but they are also the least likely to be able to afford the green alternatives. There are struggles in different sectors. The pigmeat sector has been particularly vocal in expressing its troubles, with pig feed costs almost doubling in the last two years.

8 o’clock

Scrapping carbon taxes would help significantly to reduce the costs, not only of fuel but of everything that has to be transported using that fuel, that is, not just the food on the table but the clothes on our backs and the shoes on our feet. It would also ease the cost burden faced by everyone who has to travel for work, such as rural Ireland dwellers, our home carers and tradespeople travelling hundred of miles to build the accommodation so badly needed in our cities. Social Justice Ireland has highlighted that the overall poverty rate has increased from 11.6% to 19% - not a statistic to be proud of.

There is a need to call out the Government's hypocrisy when it comes to its attitude to dealing with the cost of living crisis and blaming the EU rules. We have heard umpteen times the Government using EU rules as an excuse not to reduce VAT on fuel or heating oil, yet when it comes to the rights of people with disabilities, the Government continues to ignore the rules of the UN Convention on the Rights of Persons with Disabilities to ensure compliance. It seems, therefore, that we can ignore our commitments when it suits the Government and apply rules that suit the Government to the detriment of our citizens.

Another issue caused by Government actions is the transient accommodation crisis. I received an email from a representative of the company Mastiff, based in Taghmon, County Wexford. It states:

Over the last few weeks we have faced a number of issues with meeting contracts due to the lack of accommodation and the cost of what is available. We cannot expect our workers to pay the best part of their daily wage on accommodation. We also cannot expect these men to travel 2-4 hours home at the end of the day and return for work in the morning with a 7-8am start, this would not be safe practice.

[...]

There are workers now refusing to go to work due to the cost and we are unable to increase the contribution, we must operate within revenue guidelines. This will have an impact on the market and we are seeing steady growth in our sector, this summer will be very busy and this is a concern now as there will be the added issue of tourism and students looking for housing throughout the season.

Mastiff is a wholly Wexford-owned and based company, employing 110 people, and its contribution is invaluable to the construction sector.

If the Government reduced its tax take on fuel to reflect the emergency situation by removing excise duties and other duties and applying VAT to the product only at the base rate in the short term, 1 l of petrol and diesel would cost €1.12 and €1.28, respectively, tomorrow morning. That would be radical, meaningful action to combat the soaring cost of living and to prevent people from not being able to afford to go to work or from having to decide between heating and eating. Does it have the cajonesto do it?

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