Ivana Bacik (Dublin Bay South, Labour) | Oireachtas source

Labour welcomes this motion and I commend Deputy O’Rourke and his colleagues on bringing it forward. The principle is irrefutable: no one should be left unable to heat their home or run their fridge or other appliances because they cannot afford to pay. If there is consensus on that matter as we enter into this bleak winter ahead, then the Government has the task of examining every mechanism available to it to fulfil its responsibility to struggling households and families. The Government has to intervene in the market when the market is failing to ensure that people will have the security this winter that they need. The motion contains a variety of measures that may help. Many are policies that have been proposed by Labour and by many of us in opposition. The principle remains, however, that no one should go cold or hungry this winter because they are unable to pay. Yet, we know that at present the cost-of-living crisis and a real fear about rising energy bills are forcing many people to take impossible decisions between heating and eating, and putting so many individuals and households in fear.

In June this year, ESRI data revealed that energy inflation had increased the number of households in energy poverty to 29%, the highest recorded rate, with a concern that this will increase further over the winter months. Within that study, there was certainly an acknowledgement that some of the measures that have been put in place, such as household electricity credits, can help to keep people out of energy poverty, but these measures are insufficient on their own and more targeted measures are also needed. As we have seen from the hike in standing charges, certain measures are needed to ensure that the credits are not absorbed by further price increases, which is the real concern.

We often talk about the energy crisis and the cost-of-living crisis as short-term, immediate problems that have come upon us this year, exacerbated by Russia's brutal invasion of Ukraine. Certainly, the brutal war that Russia is waging in Ukraine has exacerbated things.

8 o’clock

However, the effects of the crises are long lasting and their roots have existed for a long time, particularly the Government's failure to deliver a sufficient supply of housing. We welcome the winter eviction ban that was announced today. Indeed, the Minister of State welcomed it in advance of its announcement by the Government.

Research published this week by the ESRI and Pobal showed a strong relationship between financial difficulties in childhood and adulthood. This is about the long-lasting effects of energy poverty and poverty more generally. According to the study, 39% of adults whose childhood circumstances were bad or very bad were materially deprived in 2019 compared with just 10% of those whose circumstances had been good or very good. Childhood financial circumstances influence later outcomes, suggesting that longer lasting supports are needed to mitigate the negative effects on health of poverty throughout life. School closures during the pandemic exacerbated pre-existing inequalities among children. It is imperative that we address the long-term impacts created by the cost-of-living crisis and the energy crisis. Stemming the effects of fuel poverty must be a serious imperative for the Government. Keeping families out of darkness is itself a targeted measure.

I will address a number of the specific measures in the motion and elsewhere. I welcome the motion's provision on the introduction of a windfall tax. We in Labour have pushed for this for some time. I welcome the recent intervention by the Minister of State's Green Party colleague, Mr. Ciarán Cuffe, in the European Parliament when he called for the long-overdue introduction of such a measure at EU level. However, I question the Government's strategy of appearing to wait and see what happens in Europe. We could do more domestically. Labour led the way much earlier this year when calling for a windfall tax on the profits of energy companies to be introduced in this country. We could have taken action then and a measure could have been adopted that would have provided real help. Last week, I restated my frustration at the Government's insistence that it could not do anything nationally and was awaiting developments at EU level. In response to a question I tabled during Thursday's Leaders' Questions, it was welcome to hear the Tánaiste's apparent commitment to introducing a windfall tax. He certainly made reference to the Government's intention to introduce such a tax but could not give me any indication of the timeline of its introduction. That prevarication has also been applied to standing charges. It is difficult to comprehend why energy companies' profits and policies regarding standing charges are apparently untouchable by the Government. We would push for more concerted action on both by the Government domestically instead of waiting on EU developments.

I will make a similar point concerning another matter that we have raised with the Taoiseach and the Tánaiste a number of times, that being, the need to examine taking the Corrib gas field into State ownership as one way of bringing about reduced energy costs for households. The Taoiseach indicated to me that he did not believe it was in the Government's gift to do so. As I pointed out to him, though, existing statutory powers under the Fuels (Control of Supplies) Acts, 1971 and 1982, countenance this measure being taken. Fianna Fáil previously used these powers in government. There is no limit; the restriction is not a legal one. This is within the Government's power and it is time for radical action. The Corrib gas field is an indigenous supplier of energy, providing for approximately 25% of Ireland's gas needs. There is no reason the cost of Corrib gas increased, given that it is being produced here. Emergency times call for emergency measures. We need to take more radical and creative measures concerning what is an indigenous source of gas. The owner of Corrib, Vermilion Energy, saw revenues increase last year by 267%. It will undoubtedly make exceptional profits this year. The Government should and must consider nationalising Corrib on a temporary basis to help to give households greater certainty on heating bills for the winter ahead.

We have sought the Government's introduction of a cap on energy prices. We acknowledge that designing and costing such a measure is complex and that there are a number of different ways to go about introducing it. In our alternative budget, Labour allocated €2.1 billion to support such a measure because a cap would ensure that all sectors of society benefited from lower energy prices. We have seen other member states taking national action while awaiting an EU-wide initiative, which would itself be welcome. Spain and Portugal produced a model whereby they limited the price of gas and electricity production, reducing consumer bills by between 15% and 20%. This so-called Iberian model was the subject of some debate at an emergency meeting of energy ministers from EU member states last month, but it was also the subject of debate in Berlin last weekend where I had the honour of representing Labour at the Party of European Socialists' annual congress in Berlin. I was glad to engage there with the Prime Minister of Spain, Dr. Pedro Sánchez, and the Prime Minister of Portugal, Mr. António Costa, both socialist prime ministers who have led the way on adopting what they call an Iberian model of an energy price cap. This model, which was brought forward by our sister social democratic parties in Spain and Portugal, has shown the sort of proactive measures that left-wing governments can take, and have taken, to protect their citizens from the fallout of Putin's brutal war on Ukraine. At the very least, the Government should pursue some part of this measure at domestic level. For example, domestic electricity credits could feature clawback mechanisms to enable them to be more targeted, such as the withdrawal of income tax credits from those earning more than €100,000. This is something that my colleague, Deputy Nash, has proposed. A levy equivalent to the electricity credit and modelled on the non-principal private residence charge could also be applied to holiday homes and vacant housing to avoid those with multiple properties benefiting disproportionately.

We need to see more data on self-imposed cut-offs for households that use prepay meters. We are all conscious that these households and families are among the most vulnerable in the face of the cost-of-living crisis.

In the brief time I have left, I wish to mention specific issues relating to those in rental accommodation. Last week, Labour attempted to amend the Government's electricity credit Bill to provide better supports for tenants in rented accommodation who paid their landlords directly for their electricity instead of paying their electricity providers. It was acknowledged by the Government that this was an issue, albeit for a relatively small number of renters. We sought to ensure that renters would be assured of having the benefit of the credit passed on by their landlords. Currently, if the landlord pays the bill, it will be up to him or her whether to pass on the benefit, as was the case with the previous electricity credit. I ask that the Government review once again how best to ensure that renters receive the full sum of the credit owed to them.

I wish to discuss district heating. The issue of energy security is significant for those in apartments and complexes that are heated through a shared or district heating system. These individuals are being hit with extortionate price increases because the supplier is the purchaser of the fuel and is charging a commercial tariff. Tenants and homeowners in such complexes have no choice of supplier and I am hearing that many of them are seeing price rises of up to 600%, which is not sustainable. These people and households need targeted supports. In particular, those with district heating systems need a gas price cap now. I reiterate my call on the Minister for the Environment, Climate and Communications – I am asking the Minister of State to raise it with him – to raise this matter at EU level, where there are ongoing discussions about a Europe-wide cap.

I am glad to have had the opportunity to propose constructive measures to tackle the energy crisis and I look forward to the Minister of State's response.

See this speech in context