Marie Sherlock (Labour) | Oireachtas source

I thank the Minister for coming to the House. He spoke about his commitment to protecting the most vulnerable. We all share the view that it is vital that something is done to address the cost-of-living crisis in this country, but how to fix it is another question. Vulnerability comes in a number of forms. There is vulnerability with regard to housing security and rising rents and vulnerability with regard to the prospect of some working parents thinking about leaving a job because there is no affordable childcare available. The real regret and disappointment for me last week was that nothing was done with regard to what I consider to be the permanent cost-of-living crisis in this country. There was no rent freeze and nothing for families who are reliant on or seeking affordable childcare. Some childcare providers are saying that they will be forced to increase their rates over the coming months because of the tapering off of the employment wage subsidy scheme, EWSS.

There was nothing for people who have to drive and do not have the alternative of access to public transport. We want to shift people away from cars and into public transport, but the Minister knows as well as I do that the reality in large parts of this country is that there are no bus or rail networks. Nothing was done to help them in view of the 32% increase in the price of diesel and petrol.For those who are vulnerable and at risk of fuel poverty, there was also a huge disappointment. There was an abject failure to amend and improve the fuel allowance scheme, which was put in place to deal with those who experience fuel poverty. Other than the €125 that they will get, nothing was done with regard to eligibility for the fuel allowance. That 20,000 applications for fuel allowance were rejected last year, along with a further 3,000 in the first five weeks of this year, tells us something about the desperation that many households are in with regard to their rising energy costs. There was a missed opportunity in the context of amending the eligibility and entitlement rules. As the Minister knows, if everyone in a household does not qualify, nobody qualifies for the fuel allowance and that has to be changed from here on out.

We are here today to debate the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2022, which provides for a universal untargeted payment of €200 to all electricity account holders. There are a number of key concerns with regard to the Bill. First, the payment will be to electricity account holders. There is a significant difference between the definition of an account holder and a household, particularly when it comes to utility payments. For the less than 70% of households that are in owner-occupier houses that have a mortgage, it is relatively straightforward in that we know the €200 will go directly to them. However, for the more than 30% that are in rented accommodation, there are a whole raft of issues, some of which Senator Boyhan raised earlier. For those who are renting accommodation where utility costs are part of the rent, we need to be clear on how we ensure the benefit of the €200 payment goes to that household in part or in full and is not retained by the landlord. We in the Labour Party will table amendments on that precise issue. For those in shared accommodation, we need to be clear on how the payment will benefit everybody in the household and not just the person whose name the bill is in. There is a glaring need to ensure those in rented accommodation get the full benefit. Due to the way the Bill has been set out, there is a real risk that large pockets of people will fall through the net. There are other issues with pay-as-you-go or prepay customers, which we know amount to 12% of all households in this country. It is an increasing number and that reflects the hardship households are facing with regard to utility bills. However, we have no detail on how they will benefit from this payment.

Overall, there is a serious question about the conversation the Government has had or will have with the energy suppliers in this country. As Senator Boylan more eloquently expressed than I ever could, there has been a failure by the Commission for Regulation of Utilities to engage seriously with the issue of how energy suppliers can also contribute to supporting households. Senator Boylan talked about how the profits of ESB Networks increased by €74 million last year. Energia's post-tax profit surged by 50% last year to almost €29 million. Bord Gáis Energy again saw an increase in its profitability last year. The question has to be asked: what are we asking of them? Tariffs are tightly regulated in this country, but there must be scope within that system to ensure additional supports are provided during this fuel crisis. The burden of responsibility must be shared between the Government and those energy suppliers. There is an opportunity cost of using that €215 million to support all households instead of supporting the worst-off households.

The Minister has said that energy efficiency is key in addressing the root causes of energy poverty, and I do not doubt his passion and sincerity in that regard. We have heard him say that many times. Last week's retrofitting announcements were very important and a significant step. However, at the heart of what was announced last week there was a very basic inequality. Households that can afford a deep retrofit, afford to stump up the 50% and afford to borrow or have the savings for the €25,000 plus can reap greater benefits than a household that can only insulate its attic or do more minor works. This is a serious problem. The Minister knows, as do the Senators in the Chamber, that the gap in the energy bill for a house that has a rating of G or F relative to a house that has a B2 rating is in the region of €3,500 per year, and I am sure that figure is growing. We need to better support those households that do not have the savings or can never afford to borrow.

There is an irony here. We are talking about a cost-of-living crisis. The Government has decided to make a universal untargeted payment to everybody, in effect recognising that everybody is affected by the energy crisis. As we introduce the retrofitting measures that are crucial to ensuring we take households permanently out of fuel poverty, as opposed to the temporary measure before us today, we need to ensure the money goes to all low-income households and not just those dependent on social welfare or in social housing.