Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I welcome the opportunity to speak on the spiralling cost of living, which is the biggest concern for my constituents coming into spring. Although income tax changes and the cost-of-living supports announced in budget 2023 aimed to protect households from the rising cost of living and the impact of inflation, a survey by Barnardos published earlier this week showed that one in ten people had relied on the likes of food banks or food donations over the previous 12 months. This is more than double the number from the previous survey, which indicates that people are being crucified and the prolonged cost-of-living crisis is causing significant financial hardship to families and businesses throughout my constituency of Louth and East Meath.

From an economic perspective, we face two enormous challenges, namely, the cost of living and housing. New figures show the State paid more than €58.2 million to 97,224 applicants for expenses such as energy bills, rent, mortgage payments, clothing, child-related costs and financial help with illness. While another electricity credit of €200 is set to come off bills in March, the reduced 9% VAT rate on electricity and gas and the reduction in excise duty on petrol, diesel and home-heating oil are due to terminate at the end of February. This will see the price increase at the pumps.

Many of my constituents face choosing between eating or heating, with 29.4% of households spending more than 10% of their income on home energy needs. People just need to have the disposable income to meet the additional costs of living. On top of this, the ban on energy disconnection is set to end. We need to step in. We need to commit to the payment of a spring bonus for those relying on social welfare payments and ensure that community welfare officers are available in the community to provide urgent supports to households experiencing severe utility debt.

With regard to housing, 11,000 people are stuck in emergency accommodation, prompting housing and homelessness charities to call for an extension of the eviction ban. With very big numbers of landlords leaving the market, we urgently need to ensure that the temporary eviction ban is extended. My office is acutely aware of the exceptionally low level of supply of housing. Not a day passes without a constituent calling to us looking for a house. We do not have houses. We direct them to rentals, but that housing is limited. The Government has spent billions during the past five years in dealing with the housing crisis. What annoys me is that the lower and middle income classes are being caught. The reduced supply of housing is resulting in rents skyrocketing relative to income. Market rental in the final quarter of 2022 was an average of 13.7% higher than the same period a year earlier. Nationwide, just 1,096 homes were available to rent on 1 February.

If we are to tackle this issue, we need to take a more direct route. Rental supply is the only real solution to a shortage of rental homes. I believe we can enhance supply using modular homes. Additionally, we need to make home ownership affordable again through stronger Government interventions to help close the viability gap. We need to help the younger generation into the housing market. We also need to help those who are struggling to pay their mortgages by reinstating the mortgage supplement scheme.

I acknowledge the measures introduced by the Government in the budget. In theory, people should have more money in their pockets but due to inflation many families are being pushed into poverty. Costs in this country are spiralling. While one-off social housing and pension payments are welcome, as is the extension of safety measures, such as the extension of the ban on evictions and electricity disconnection, we need to offer hard-pressed families real, long-term supports.

Likewise, I have spoken to many businesspeople in Dundalk over the past number of months and have been alarmed by some of the cost increases they are facing. We need to consider small businesses this spring. It is expected the VAT cut to the hospitality sector will not be extended beyond the end of February and discussions are ongoing on whether to extend the temporary business energy support scheme to businesses struggling with soaring energy bills. The hospitality sector was hit hardest by the pandemic. Businesses were only getting back on their feet when the energy crisis hit. They are being kicked left, right and centre but we are considering increasing their costs while also reducing helping measures. This is ridiculous. It is imperative that we help businesses or lay-offs will result. With work under way linking our benefits system to pay for workers who suddenly lose their jobs, if the Government does not help existing businesses, we will have to step in under this initiative and pay 60% of previous income, per week, per employee, to help people when they lose their jobs. We are robbing Peter to pay Paul.

Those in need are slipping through the gap and people's mental health is suffering. People are worse off, with inflation affecting what they buy daily, such as food, fuel and general items for day-to-day living. This country has done a fantastic job in recent years and every household has been affected by what has happened. However, inflation has taken over. How our Government manages through into the end of this year may dictate the future of the rising generation.

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