Dáil debates

Wednesday, 26 November 2025

Finance Bill 2025: Report and Final Stages

 

3:25 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)

I move amendment No. 28:

In page 91, between lines 1 and 2, to insert the following: “Report on legislated increase to rates of Mineral Oil Tax

53. The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on the legislated increase to rates of mineral oil tax, including an analysis of the distributional impact.”.

I have raised and referenced over and over again the issue of the continued increases in the carbon tax by this Government on petrol, diesel and home heating oil. This week, we see that the cost of a fill of home heating oil has gone up by €80 as a result of external factors, but that does not take away from the fact that the Government has been instrumental in pushing up the cost of a fill of home heating oil by a significant amount, €220, in terms of carbon tax so far. Worse than that, the Government plans over the next five years to increase the cost of a fill of home heating oil by another €150.

I have made the point that there are two ways to bring taxes in. Taxes are brought in either to raise revenue for the State to provide services that are required by its population and people or to affect behavioural change. Alternatively, they can be brought in for behavioural change, which is absolutely valid. I have agreed with it on different occasions in different areas, such as the sugar-sweetened drinks levy or the plastic bag levy. There are examples where it can work and all the rest. Increasing carbon tax on home heating oil, however, just makes homes and households poorer. That is the reality of it. That is the effect of it at this point in time because people do not have the resources to provide the alternative types of heating that are required. That is the reality.

We also see it when it comes to petrol and diesel. I come from and represent a Border county. It has been pointed out by Fuels for Ireland and others that the difference between the cost of a fill of home heating oil in Lifford compared with Strabane is €300. It is mad. What makes that difference? All the same global factors that are pushing up home heating oil prices, such as the war in Ukraine and the illegal invasion by Russia, are also pushing prices up in Strabane. The reason there is a €300 difference is that Fianna Fáil and Fine Gael have decided to increase taxes significantly on the cost of trying to keep your house warm. In my county, two thirds of people rely on home heating oil to keep their house warm in winter. Across the west of Ireland in counties like Galway, Roscommon, Mayo and Leitrim, two thirds of people - over 1 million households across this State - are being penalised as a result of the Government’s measures.

We see increases over and over again, not only with home heating oil but also with petrol and diesel. It could be argued that it is about trying to get people into electric vehicles, as if everyone has €40,000 or €50,000 to spend on a new electric vehicle, even if the infrastructure were there for them in areas. For those who can afford it and make that change, it is excellent. The Government is way off its targets in this regard, however. It is aiming for 1 million new electric vehicles by the end of 2030. I could be wrong on this because I have not really looked in detail at the figures but probably every single car in the State, from now until then, would have to be an electric vehicle for us to actually meet that target. It is so far off. The reality is that people do not have that type of money to make that type of investment.

We have seen petrol prices sky-rocket during the illegal invasion of Ukraine. They went up to €2.20 per litre and measures were introduced by the Government that brought them down below €2. It did not force people to stay at home, go off the road and all the rest, however. Indeed, the number of cars on the roads is actually increasing. This experiment happened in the last couple of years. Again, behavioural taxes work if alternatives are available and affordable to individuals. This is putting the cart before the horse.

I call this the Healy-Rae amendment. I was telling Deputy Danny Healy-Rae that he was going to be the star of the show in relation to this. Maybe he will come into the Chamber, wherever he is. This is the Healy-Rae amendment because, by God, the Healy-Raes gave it hammer and tongs on the issue of petrol and diesel. I must say, if awards were going – Miriam Lord gives out awards every year - the “brass neck award” has to go to Deputy Danny Healy-Rae. Did the Minister hear him on the Order of Business today? He stood up and asked the Taoiseach whether there was any chance he could do something about the cost of petrol and diesel, as well as the carbon tax and all the rest of it. Just this week, he voted against measures from Sinn Féin that would actually reduce carbon tax. I am sure he will trot out later not knowing what is happening and vote again with and in support of the Government, as his brother, the Minister of State, Deputy Michael Healy-Rae, will do. They will vote to put up the price of petrol and diesel on farmers, motorists and commuters in County Kerry and elsewhere because that is the reality of them. They got their 30 pieces of silver and they have sold their soul and abandoned any integrity they had on this issue. I will press the Healy-Rae amendment tonight.

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