Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Government recognised the great challenge of rising prices since last October in budget 2022, in which we brought in measures worth €1 billion to help anticipate a change in the cost of living. In February, the Government went further and agreed an additional package of €505 million, including the €200 energy credit and a lump sum payment of €125 for those in receipt of the fuel allowance. We also changed the rate of VAT on electricity and gas and cut excise, among other measures totalling approximately €2.4 billion.

In the study to which the Deputy referred, the measure that is used is GDP. As he is well aware, modified domestic demand is a more appropriate metric for how national income is measured in Ireland. GDP, which is the measure used in the study that was published yesterday, is well identified and well known as an inaccurate measure for how to look at national income in this country. If the more appropriate measure for national income in Ireland is used, the measures we have put in place are equivalent to approximately 1% of our national income, not 0.5%. In addition, the figures to which the study refers do not include the taxation measures that have been brought in, such as the reduction in excise, and include for other countries measures they have announced for 2023 and 2024, whereas the Government, at this point, has only announced measures for 2022.

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