Dáil debates

Wednesday, 15 June 2022

Annual Transition Statement: Statements

 

2:57 pm

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

Our approach to climate action is wrong. It is being highlighted more clearly with each passing day. We cannot discuss climate action unless we look at it in the context of the cost-of-living crisis and the way in which our approach to climate action is exacerbating that crisis. I do not expect the Government to be able to provide solutions to all problems or to those problems over which it has no control. The imposition of carbon taxes, however, is one area in which the Government does have full control. On Monday, I read with dismay anIrish Independent article with the headline, "Taoiseach vows crackdown on 'reprehensible' energy crisis profiteering and warns Government is monitoring price trends". The hypocrisy of the statement is almost beyond belief. How dare any Government politician complain about the very small profit margins made by fuel retailers as long as the Government is responsible for adding approximately 50% to the retail price. The biggest culprit when it comes to fuel profiteering is the Government. The Government's profiteering is going to continue until at least 2030, at which point the carbon tax on fuel will have more than doubled from what it is today.

In the article I mentioned, the Taoiseach was quoted as having used the word "reprehensible" to describe the profiteering by retailers. When it comes to fuel prices, I think what is reprehensible is the practice of charging tax on tax. I have highlighted this aspect before. VAT is charged on excise duty and carbon tax and, therefore, not only is the Government taxing people into fuel poverty, but it is even charging them VAT for the pleasure of paying their excise duty. This is what is reprehensible in my opinion and, I am sure, in the opinion of hundreds of thousands of people who are being scammed by this every day. A few weeks ago, the Government became less greedy and reduced the excise duty by 15 cent a litre, at which time petrol could be bought at €1.80 per litre in some places. The price is now around €2.20 per litre in many places. This is an increase of 40 cent per litre in the pump price in a matter of weeks. Out of that increase of 40 cent, approximately 8 cent is in the form of extra VAT for this Government. Even ending the disgusting practice of charging tax on tax would be a start for the hard-pressed taxpayer.

The invasion of Ukraine and the decision to impose sanctions on Russian products has also been a contributing factor. In fairness to the Government, this is a factor outside its control. It should, though, bring into sharp focus the folly of curtailing or abandoning indigenous energy production and gas exploration

Through these short-sighted climate policies, we have come to rely far too much on supplies which are now proven to be on shaky ground.

I saw the delight of Deputy Higgins a few weeks ago about her successful campaign to change the name of the passport service to reflect the fact that it is not an express service. This Government, rather than addressing the key problem of the poor service, found it easier to change the name. Perhaps, in the spirit of naming things accurately, the Minister of State and others will consider joining me when I urge the Minister for the Environment, Climate and Communications to remove all references to a just transition and instead use the more accurate term of unjust transition. We need to remember that in April 2022, the Government, which does not have a money tree and says it cannot do any more, collected an extra €35 million in tax compared with April 2021.

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