Gerald Nash (Louth, Labour) | Oireachtas source

I thank my constituency colleague for his contribution.

I am pleased to speak on this motion on behalf of the Labour Party. Listening to some commentators in recent days, you might think the cost-of-living crisis is more or less over. Nothing could be further from the truth, especially for those living in a permanent cost-of-living crisis. The rate of inflation might be slowing but it is important to remember that inflation was 7.8% when measured in 2022. The spike in prices, especially of essential goods, was much higher. It might slow to approximately 5% but that means that practically everything we buy costs much more than it did 12 to 18 months ago. We have had 23 straight months during which the annual increase to the consumer price index has been at least 5%.

We know, as does the Minister of State, that inflation hits different sectors of society very differently. People who are well paid and who managed to save money during the Covid-19 pandemic are generally well insulated. However, for those on a fixed or low income, the past 18 months have been catastrophic. The Government's answer for those most impacted by rising costs was below-inflation increases to weekly social welfare rates, a below-inflation increase to the minimum wage when corporate profits were at record levels, and a series of poorly targeted one-off measures, some of which helped to fuel rather than tame inflation. Two weeks from today, the Government looks set to make the same mistakes again: social welfare increases that will be too low to restore the purchasing power of pensioners, carers and people with disabilities and a series of energy credits given regardless of income and assets held, when many thousands of people could do with much more.

On top of this, separate from the budget, two scheduled measures are to be taken in October that will see increases to the prices of petrol and diesel at the pumps. The motion characterises the increases due as arising from the fact that the Government has "legislated to increase the price of petrol and diesel on 11th October, by a further 2 and 2.5 cent per litre, respectively" and "legislated to increase the price of petrol and diesel on 31st October, by a further 8 and 6 cent per litre, respectively". However, the motion is silent as to why. It does not describe what these increases involve. One relates to a planned increase in excise duty at a time of high prices. As the OECD stated that 2023 has seen the first drop in living standards for Irish households since 2013, I fully expect and demand that the planned excise duty hike scheduled for next month be dropped. That is the position the Labour Party proposes and advocates. It is within the control of the Minister for Finance to do this to help hard-pressed motorists who are faced with a plethora of charges they could do without, at least for a six to nine month period, to be kept under review.

I am surprised the reason for the other increase that is to be introduced in October has not been explicitly mentioned in the motion. I think the Minister of State referenced it earlier. It is to do with the long-planned and legislated for increase to carbon tax.

Why did Sinn Féin not say this directly in the motion? That is a valid question. Sinn Féin has directly referenced its opposition to carbon tax before because it plays well on the doors. The failure to mention that this is carbon tax is conspicuous and, quite frankly, suspect. This is serious.

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