Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

On fuel excise, a package of measures, to the value of €320 million, was introduced on 10 March. I know the Deputy said that was little or nothing but €320 million is a substantial figure and that was only done quite recently. That reduced the VAT, inclusive of excise duty on petrol and diesel, by 20 cent and 15 cent per litre, respectively. These reductions mitigate the cost of a fill of a 60-litre tank by €12 for petrol and €9 for diesel. We know that as we head back into the next winter season, when it comes to the cost of home heating oil, those areas will become more important. There is not quite the same call on those resources during the summer.

However, I have made the following point already and the Deputy will also have heard about the ESRI report this morning. That contains food for thought for the Government for the forthcoming budget and preparation for same. I respect what the ESRI says even if I do not always agree with it. I often agree with what it says and the ESRI has talked about the measures we have introduced, including the precise ones the Deputy is proposing. I am not taking the following quote selectively; rather it is a big quote in bold print in its press statement:

If the objective is to protect those most affected by rising energy prices, cutting indirect taxes on energy – like VAT, fuel duty, or the carbon tax – is a poorly targeted response.

That is the case because it has run the figures and it says that wealthier and better off people on higher incomes are benefiting disproportionately and in a positive way from its point of view, rather than the people who need it more. The ESRI goes on to state in its press release:

Instead, increases to welfare payments, the fuel allowance, and even lump-sum payments like the household electricity credit are better targeted at those most affected by energy inflation

That is because energy inflation affects people on lower incomes more than people on higher incomes. Everyone got the €200 but proportionately, the value of that €200 was far more for a lower income household than for a more wealthy one. The ESRI is saying that some of these measures are more targeted because they help people on lower incomes to a much greater extent. Some parties in the House oppose this completely and think the solution to everything is solely in petrol and diesel. These other measures we have taken to reduce the cost on households and the cost of public transport also contribute and have to be taken into consideration.

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