Martin Browne (Tipperary, Sinn Fein) | Oireachtas source

Let us remember the many cases when the Government was pressed by the Opposition to take numerous measures in the interests of the hard-pressed public at a time of high inflation and general global turbulence. With regard top mineral oil tax, referred to in section 2, the reduced rates of 21 cent per litre of petrol and 16 cent per litre of diesel are due to continue until the end of May, at which stage they are scheduled to increase. Petrol will increase by 6 cent per litre and diesel by 7 cent per litre. On 1 September, there will be further increases and on 31 October, prices will go up again.

It must be noted that Sinn Féin called for the excise rates on petrol and diesel to be extended beyond February and kept under review. We now know that if the reduced rates lapsed at the end of February, at current per litre costs, we would now be paying approximately €1.86 and €1.82 per litre for petrol and diesel, respectively. Thanks to the Government, people will notice that the recent excise rates will increase by more than they were reduced. This is because the Government has seen fit to increase the carbon tax on petrol and diesel in October 2023.

This is not the only area in which households will be hit with the consequence of carbon tax increases during a time of financial constraint. The Bill also provides for an increase in the carbon tax on home heating oil from 1 May. This will increase the price of a 900 l fill by another €20, meaning that since April 2022, the Government will have increased the cost of filling a 900 l tank by €39.

In response to the cost-of-living crisis, the VAT rate on electricity and gas was reduced from 13.5% to 9%. While this reduction will continue until October, the Department of Finance has calculated that the extension will only reduce electricity prices for households between now and then by €38, or €5 per month. This is because the Government has refused to act like many other governments across Europe to reduce the cap on electricity prices to protect households. When many people opened their electricity bills in the new year, they saw how that was reflected in their charges.

Last year, when I raised the concerns some Tipperary businesses had expressed for their future I was dismissed by the current Taoiseach who spoke about the TBESS. The scheme proved to be less than successful, in large part because the energy cost threshold was set at 50%. It is welcome to see the threshold has been reduced to 30%. I urge the Government to speed up work to get a scheme together that includes businesses that are reliant on oil and LPG.

Given the manner in which inflation is being addressed through increased interest rates for mortgage holders, we need to see the introduction of a targeted and temporary mortgage interest relief scheme to support homeowners who are struggling to make ends meet. Sinn Féin proposed such a measure. I have spoken to many people about it and I appeal to the Government to act swiftly on the matter.

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