Dáil debates

Wednesday, 5 July 2023

Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Bill 2023: Committee and Remaining Stages

 

3:57 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein) | Oireachtas source

I want to speak in support of amendments Nos. 12 to 14, inclusive, under section 17 of the Bill. As it stands, the timeframe for imposing surcharge penalties is too long, and the surcharge is too low for it to have any real standing for companies of scale and resourceful companies. The 5% surcharge should be imposed within the first two months of non-payment. The 10% surcharge should be implemented after two months of non-payment, and a 50% surcharge imposed on those who neglect to pay after six months. These measures will act as an incentive to make sure the due revenue is furnished to the State in the shortest possible time.

Another point I would like to make about this Bill is that the implementation of the solidarity contribution should be absolutely obligatory. There should be no room for any effort at avoiding payment. As such, I support the proposal to remove lines 29 to 34, in page 7 of the Bill, and to replace them with a definitive commitment that arrangements will not be permitted to have the effect of reducing the amount of taxable profits.

I also want to make a general comment on the Bill itself. The introduction of the solidarity contribution is welcome, It is important that the revenue gained from this charge is used for the purpose of reducing customer energy prices and removing people from the energy poverty quagmire that so many people find themselves in. While the public have suffered these high costs, many energy companies, as we are all well aware, have been earning extraordinary profits, and showing little to no inclination to pass them on to consumers. The Government has offered extremely limited supports to consumers, and prices have got to an unaffordable level for small businesses and personal consumers alike. If one compares the January 2023 retail electricity and gas prices with those of January 2021, one will see that there have been increases of 98% and 138%, respectively. It seems that these prices are set to continue for a considerable period of time. It is deplorable that working families are struggling so much while the energy companies have seen soaring profits. People are now working solely to pay the bills. There is nothing left over. Food prices, rent and mortgage rates and energy prices have gone up, but those on lower and middle incomes are simply working to pay these bills. There is nothing left for the rest - nothing for the odd dinner out or a weekend break. There are just ever-rising bills.

Households continue to pay sky-high energy bills, with electricity and gas bills more than double what they were two years ago. I have been made aware of some extremely high bills by my constituents in Limerick. Many elderly people have been charged hundreds of euro in their most recent bills, and in some cases more than that. Many of those affected are worried about how they are going to pay, and some residents have spoken to me about needing to take out loans to pay for these essential services. It is not good enough that citizens, particularly those depending on modest pensions, are facing such stark choices when it comes to paying their bills. As I said, energy costs are sky-high, and families are struggling to afford them. People who are facing huge bills are anxious about where these spiralling costs will end.

I want to reiterate my support for amendments Nos. 12 to 14, inclusive. I appeal to the Minister of State, Deputy Smyth, to accept them.

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