Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I propose to respond to recommendations No. 17 to 21, inclusive, together. Recommendation No. 17 refers to reducing the rate of motor oil tax currently in place on diesel and petrol to the minimum rate allowable under the energy tax directive on 1 March. The recommendation also proposes to reduce the rate of motor oil tax on non-propellant use of kerosene to 0% until 1 March 2023. Recommendations Nos. 18 and 19 propose reducing the rate of motor oil tax effective from 1 March and 1 May on non-propellant use of kerosene from €103.83 and €122.83 to €84.84 cent per 1,000 l. Recommendation No. 21 refers to laying a report on extending the current reductions in the motor oil tax rates until 30 April 2023, within three months of the passing of this legislation.

I acknowledge the impact of fuel prices on the current cost-of-living crisis and welcome the discussion of this important matter in the Seanad today. Senators will be aware that the final retail price of fuel is determined by a number of factors including the costs of production and distribution, global market factors, international exchange rates, taxation and market contracts, as well as individual retail pricing policies. The Government is very aware of the impact of increased fuel prices on households and businesses. While it is not possible for the Government to fully insulate consumers against these price impacts, we have put in place a number of significant steps to help lessen the impact.

Between 2021 and 2022, the Government invested €7 billion to help to address the cost-of-living challenges because we know they are causing serious difficulties for so many. The package already includes measures that refer to reduced rates of excise on diesel, petrol and a reduced rate of VAT on electricity and natural gas. The Government has already provided an extensive package of expenditure measures, including the energy credit which applies to all domestic electricity account holders, as well as lump sum additional payments and increased rates on a number of welfare payments. The Government has also provided for reduced rates on public transport fares and childcare fees. Budget 2023 has already provided for energy credits amounting to €600, as well as additional welfare payments for those most vulnerable to fuel poverty. The application of carbon tax increases on home heating oil is delayed until May to allow for the passing of the winter season. The specific carbon tax-related measures in budget 2023 are an increase in the qualified child payment, an increase in the means limit applied to the fuel allowance and an increase in the threshold for eligibility for the working family payment of €40 per week.

The Government has already put in place measures to respond to the impact of rising fuel costs on living standards and for that reason, I am not in a position to accept these recommendations.