Dáil debates

Tuesday, 15 November 2022

Ceisteanna Eile - Other Questions

Cost of Living Issues

9:20 pm

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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86. To ask the Minister for Public Expenditure and Reform if he anticipates further expenditure measures to address the rise in the cost of living; and if he will make a statement on the matter. [56444/22]

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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Does the Minister anticipate further expenditure measures to address the increase in the cost of living?

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for the question. Budget 2023 contained significant responsive measures to support households, public and community services and businesses, with spending measures of €4.5 billion. As part of this budget, a winter cost-of-living package for households, costing €2.2 billion, was announced by the Government. It included the following: a double payment of weekly social welfare scheme payments in October; a fuel allowance lump sum of €400; a once-off payment of €500 to those in receipt of the carer's support grant and people on the disability allowance, blind pension and invalidity pension; a €200 living-alone allowance lump sum; a €500 working family payment lump sum; a double child benefit payment; a once-off reduction in the student contribution fee of €1,000 for undergraduates and one third for apprentices; a €1,000 increase to the postgraduate tuition fee contribution grant; a double payment to those eligible for Student Universal Support Ireland maintenance grants and a once-off payment of €500 for Science Foundation Ireland and Irish Research Council PhD researchers; €8 million for the student assistance fund; and three €200 electricity credits, with two instalments due in the new year. In addition, a Christmas bonus will be paid to eligible social protection recipients in December.

In recognition of the unprecedented rise in energy bills for businesses and public services, the Government introduced several further support measures. It provided €340 million this year in support for public and community services. It will introduce a €200 million Ukraine emergency response scheme, helping firms facing liquidity issues as a result of increased energy costs. It is to be administered by the Department of Enterprise, Trade and Employment. We are introducing a temporary business energy support scheme, providing up to €1.2 billion to support businesses encountering increased energy costs. The focus of the Government is now on implementing all these measures, plus a range of others announced in the budget less than two months ago.

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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I set up the Minister nicely to list the measures he has introduced. In fairness, there has been an incredible intervention. We have never seen anything like it in the State's history in terms of how we have tried to cushion the blow from the increase in the cost of living. The Minister mentioned the cost-of-living payment, the disability support grant, the doubling of the social welfare payments, the reduction of the student contribution and the doubling of the student grant for December. These are all extraordinary measures that will make a difference and help. However, as we get into the middle of winter, time goes by and inflation continues to increase, at what point will we review the existing measures and consider increases where needed?

A key element in reducing energy costs is the roll-out of solar. Can we expect a rapid roll-out of solar, particularly domestic solar?

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy. Just today, the Minister for Social Protection, Deputy Heather Humphreys, and I announced the details of the four lump-sum payments to be made this week, on Wednesday, Thursday and Friday. These payments are: the fuel allowance lump sum; the disability grant lump sum; the living-alone allowance lump sum; and the payment to low-income working families in the form of the working-family payment. Throughout next year, starting on 1 January, we will see the implementation of a range of other budgetary measures designed to ease the cost-of-living pressures we know many households are facing, including the changes to core weekly social welfare rates, the easing of the eligibility threshold and qualifying criteria for the fuel allowance, to give just a few examples in the area of social welfare, and also income tax changes. We will consider the point the Deputy has made on solar energy and what more we can do as a Government to incentivise investment in that source of renewable energy.

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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The Europe-wide windfall tax represents another opportunity to reduce costs for both households and businesses. This tax will be levied on energy companies that provide low-carbon and low-emissions energy. I have heard figures of between €2 billion and €3 billion for Ireland alone out of the entire pot. That is a significant pot to use to cushion the blow for businesses and households, but the latter especially. When can we expect to see the benefits of the windfall tax? When can we expect to see the revenue distributed to the households that will badly need it in January and February, when it will still be cold, and to businesses? Some businesses are very appreciative of the temporary business energy support scheme but feel more may need to be done in future months. Can we see the windfall tax revenue distributed?

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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The Aire spoke about the electricity credits. In this regard, I would like to bring up an issue. Would it be possible to consider a bespoke solution for communal heating systems? Constituents of mine in Carlinn Hall have a gas-fed communal heating system that presents a particular anomaly. In the long term, the only solution is to change the source, but in the short term we need to mitigate the pressure people are under. If possible, could the temporary business energy support scheme payment be made to the companies that run such schemes, once it is ensured that the residents get the break?

I also wish to raise a related issue. Have we dealt with anomalies such as shared meters at caravan parks, etc.?

Photo of Jennifer Murnane O'ConnorJennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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Could I ask the Minister about funding to assist students as they cope with the cost-of-living crisis? In Carlow, we now have the South East Technological University and Carlow College. However, while students in the university can access Government supports to combat the cost-of-living crisis, those in the college cannot. Some third level students can receive funding for laptops under the assistance scheme but Carlow College students cannot access that scheme. The college loses out on mental health funding and other supports simply because it is not under the Higher Education Authority, HEA. Can the Minister tell me what engagement the Minister for Further and Higher Education, Research, Innovation and Science, Deputy Harris, has had with the Department of Public Expenditure and Reform on the progress on including Carlow College under the HEA?

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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In response to Deputy Christopher O'Sullivan, we have committed that any additional revenues we raise, whether from a windfall tax, a solidarity contribution from companies in the renewables sector, which companies have done very well owing to how energy is priced, and also from fossil fuel companies, will be provided by way of additional supports to communities, households and businesses. Several Departments are currently working to scope out the impact of the measures that have been agreed at EU level. That work is continuing. I expect that, throughout next year, we will have further clarity on what that means. The commitment to giving revenue back to people by way of additional supports, reduced network tariffs and so on will apply.

On Deputy Ó Murchú's question, I assume he was referring to district heating systems. This issue has been raised with me also at constituency level. I have engaged with the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, on it because I am aware it has presented particular problems for residents with group heating. A district-heating group has been set up across government to work on that and determine what possible solutions may exist.

I will ask the Minister for Further and Higher Education, Research, Innovation and Science, Deputy Harris, to revert to Deputy Murnane O'Connor on Carlow College and the non-availability of some of the supports to some of its students.