Gerald Nash (Louth, Labour) | Oireachtas source

I will move a Labour Party amendment to Financial Resolution No. 2. The Government motion intends to extend the 9% rate of VAT on electricity and gas until 30 April 2025. The measure is projected to cost €110 million, inclusive of November and December 2024, as it expires on 31 October. In our alternative budget, published last week, the Labour Party proposed this measure should be extended until the end of 2025. This would cost a total of €231 million or €120 million extra above what was allocated. As we know, bills remain 70% to 80% higher than pre-crisis levels. We do not have any proper measurement of energy poverty in Ireland but research by the Vincentian research centre shows the need for more supports and how even some A-rated homes cannot afford to cover their minimum needs.

As Sadhbh O'Neill writes in The Irish Times today on another measurement by the CRU, its data shows domestic electricity prices were the ninth most expensive in Europe and gas prices were the fifth most expensive. As we know, it is the poor who pay more for energy. The Corrib gas field supplies us with approximately one third of our own gas but we have the fifth most expensive gas prices. One of the key reasons for this, as the Minister knows, is the explosion of data centres which are soaking up excess renewable energy added to the grid.

It is clear that Ireland can afford an extended VAT rate. Prices remain far too high. The new PSO levy came into force today and will add €3.23 per month excluding VAT. Over a year it will add approximately €42. Further network charges could add an extra €100 to bills. A question the Minister might now also consider is whether, if the State is putting €750 million into the grid from AIB share revenues as was announced today, why will extra charges be passed onto consumers at all?

To put it simply, our electricity and gas prices remain way above the EU averages. Energy poverty remains a big problem. State charges will add well over €100 a year to bills next year. Extending the 9% VAT rate on gas and electricity for all of 2025 would be a small but important step to help families throughout the country through this difficult time. I ask the Minister to accept our amendment.

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