Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I propose to take Questions Nos. 68, 110, 157 and 237 together.

I thank the Deputy for his good wishes, and I look forward to working with him. It is important to note that from the outset the Government has acted forcefully and decisively to help ease the burden of inflation on households and businesses across the country. Budget 2023 was a cost-of-living budget, incorporating a total package of €11 billion with the focus on protecting the most vulnerable from rising costs. This built on some €3 billion in measures introduced by the Government over the past year. It would be premature to take a decision on further policy measures before a full evaluation can be made of the performance of the measures currently in place, the outlook for inflation this year and, indeed, the prospects for the public finances.

I would caution that excessive or poorly designed fiscal policies could backfire. In this regard, it is crucial that budgetary policy itself does not become part of the problem by contributing to an inflationary spiral that would have severe consequences. I also emphasise that the majority of the cost-of-living measures introduced as part of the budget will continue to support households and firms over the coming months. For example, the two remaining electricity credits, which are worth €200 per household and which amount to €800 million in spending, will continue to be issued in the coming period, assisting households with their energy bills.

The temporary business energy support scheme, TBESS, which provides relief to businesses struggling with rising energy costs, will remain open for claims until the middle of this year. The €1.1 billion package of reductions in personal tax as well as increases in social welfare payments provided for in the budget took effect earlier this month and are permanent. In our response to the cost-of-living challenge, the Government has struck the right balance between providing necessary support without adding to inflationary pressures. Moreover, there is compelling evidence to suggest that inflation has peaked, while it is notable that energy prices, at the wholesale level at least, have fallen significantly from their highs last autumn. Hopefully, we will see those being transmitted to the end consumers. Any policy decisions must take into account these developments.

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