John McGahon (Fine Gael) | Oireachtas source

I will be brief because this is a straightforward Bill initiated by the European Union. The Russian invasion of Ukraine was where the issue with electricity prices started. In the early days of 2022, we did not know how long the war in Ukraine or the fluctuation in energy prices was going to last. What was clear within the first six months of the war was the huge profits that energy companies were making off people. Substantial profits were made, rather than profits that were normal in that type of economic market. They were above the usual levels of profit. That was profiteering off a war on the European Continent. There was a lot of debate around that time about whether a price cap could be introduced and how it would be implemented. I am glad that the European Union decided to take the initiative for all member states to introduce a price cap throughout the European Union. That is one of the directives we have to introduce.

I am pleased to see today that all of the funds we will raise from this tax will go to protecting vulnerable customers in this country and investment in renewable energy. Investment in renewable energy will continue to strengthen our energy security and move the island of Ireland away from dependence on fossil fuels and the risk posed by any sort of regional wars. Unfortunately, in the next decade regional wars will become more of a common feature around the globe in terms of international relations. It is important that the money raised from this measure is used for that purpose.

The Minister said between €250 million and €400 million will go back into renewable energy projects. As he said, it is important that those savings are passed on to vulnerable customers, in particular people who are experiencing energy poverty. I want to commend some of the budgetary aspects the Government has introduced in the past year. Most notable are the energy credits last year and this year, which have gone a long way to providing financial security for people, in particular the business scheme which was the largest budgetary amount last year at over €1 billion. Businesses were able to claim up to 40%, 50% or 60% of their schemes back.

I have been very clear that when we are speaking about the cost of living crisis which is mixed in with the war in Europe, we as a Government are not able to protect everybody from absolutely every price increase or volatility and it would be wrong to say that we could. We have been able to lessen the burden as much as possible and provide a safety net so that the increases affect people in the most minimal way possible. I believe we have done that.

That is what I see in my constituency office in Dundalk with people I deal with every day of the week. I can see how those measures have benefited people. I have the same view on this Bill. The money raised from these measures is going to go back into helping people with further financial supports. At the same time we will invest in our economic future in terms of renewable energy and ensuring we have the proper level of energy security that we need to try to negate any future conflicts that may arise throughout the next decade in terms of Ireland's energy supply.

I am glad to see the Bill come before the Seanad today. It is something I support. The sooner it is passed, and we can get the cap in place and start getting money back into communities on the island of Ireland, the better.