Seanad debates

Wednesday, 29 April 2026

Annual Progress Report and Government Response to Energy Price Pressures: Motion

 

2:00 am

Photo of Pat CaseyPat Casey (Fianna Fail) | Oireachtas source

I welcome the Minister of State to the Chamber. In this motion I will address the Government's response to the recent escalation in energy prices in a clear, measured and practical manner, grounded in the economic evidence and in the lived experience of families and businesses across the country. While reports and statistics matter, what really matters to people is how decisions taken here affect their daily lives, whether families can manage bills and small businesses can stay viable, and whether people feel that the system understands the pressure they are under. Let me be clear: no one is denying that the pressure exists. People know it every time they fill their car with fuel, open an electricity bill or stand at a supermarket checkout. The question is whether Government responds in a way that actually helps, without creating bigger problems down the line.

The starting point is that Ireland is in a strong position to respond. We now have over 2.8 million people at work, which is the highest level of employment in the history of the State. Unemployment has been below 5% for four years. This means that more households have incomes and more people have security in their jobs. The public finances are also strong. Last year, the State ran a surplus, and debt levels have continued to fall. This matters because it gives us the room to act when something goes wrong, which is exactly what responsible budgeting and governing is meant to do. However, economic strength at a national level does not lessen the day-to-day pressures families are facing. Ireland imports most of its energy. When oil and gas prices rise globally because of a conflict or instability abroad, those increases hit here quickly and directly. There is no buffer and whether someone lives in the city or the countryside, energy costs go up for everyone. For families, that pressure shows up immediately in higher home heating bills, higher electricity bills, higher costs to get to work and school and higher childcare costs. In rural areas especially, where people rely on cars, rising fuel prices hit hard and fast. People feel it in the weekly shop where prices remain high. They feel it in insurance costs, mortgages and everyday expenses that have steadily crept up over recent years. Even when inflation has eased prices have not fallen back and households are still carrying that load.

Middle-income families are often the most squeezed. They may be working full time and paying their way but they do not qualify for many supports and they do not have the spare money to absorb sudden increases. For lower income households, energy costs take up a much bigger share of income, leaving no room at all when prices increase. That is the reality people are living with and to which the Government has to respond. That is why the €750 million package to address rising fuel prices is the right response. Temporary reductions in excise duty on petrol, diesel and marked gas oil are not abstract measures; they provide immediate, visible relief at the pumps. People see the difference straight away when they fill up and that matters for families, commuters and workers who depend on their cars. In practical terms, these measures have reduced the price of petrol by 27 cent a litre, diesel by 32 cent a litre and marked gas oil or green diesel by 7.4 cent a litre, delivering real savings for households, rural drivers, farmers and small businesses. At the same time, to protect those most at risk of fuel poverty, the Government has extended the fuel allowance season by four weeks. This will provide an additional €152 to each of nearly 470,000 recipients, supporting over a quarter of households and helping ease pressure on home energy costs.

I also strongly support the decision to temporarily defer the planned increase in the carbon tax. Climate action remains essential and nothing in this decision changes that, but climate policy has to be workable and fair. Adding extra costs to households and small businesses in the middle of an international energy shock would not be sensible. It would have pushed people too far, too fast.

Support for the road transport sector is also essential. That is why the Government has committed €150 million in targeted assistance, with the detailed operation of the scheme announced today. HGV drivers, hauliers and coach operators are not some separate group. They carry our food, deliver our fuel and keep our economy running. Fuel is one of their largest and most volatile costs. If those costs rise sharply and Government does nothing, they do not disappear. They feed straight through into higher prices across the economy. Supporting the transport sector is not about picking favourites; it is about preventing inflationary measures from cascading into household costs.

The same approach applies to agriculture and fisheries. The Government has provided €100 million in targeted supports for farmers and fishers, with full details also confirmed today. It is important to recognise these sectors, which cannot easily pass on rising costs yet are fundamental to local employment, our food security and our rural communities.It is important to be clear about what these measures are intended to do and what they are not. They are not permanent giveaways. They are not reckless spending sprees. They are temporary, targeted interventions designed to deal with a specific shock. They are affordable because public finances have been managed carefully. Even after these measures, debt levels remain on a downward path and long-term savings for future needs are still being accumulated through the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. That means we can support families today in a responsible way without passing on a burden of debt or instability to our children in the years ahead.

Of course, short-terms supports are only part of the solution. The real and lasting way of protecting families from future energy shocks is to reduce our dependency on imported fossil fuels. That is why the Government is continuing to invest heavily in energy security, renewable regeneration and the electrical network. It is so that Ireland is less exposed when international prices spike for reasons entirely outside of the Government's control.

In my own county of Wicklow, that transition is not abstract policy ambition. It is already taking practical shape. Projects such as SSE Renewables and Codling offshore wind developments off Wicklow's coast show what energy security looks like in real terms. These are long-term investments that can deliver clean domestically generated electricity at scale, strengthening the national grid and reducing the vulnerability of households and businesses to unsustainable global fuel markets. This is how we move from reacting to energy shocks to building resilience against them through sustained planned investment that lowers costs over time and gives families greater security about their future.

The position is clear. Ireland continues to benefit from a strong economy and well-managed sustainable public finances. At the same time, families and businesses are under real pressure from rising costs driven by global events entirely outside of our control. The Government has responded in a timely and responsible way, providing targeted relief where it is needed, easing immediate pressure on household budgets, and doing so without undermining fiscal discipline our long-term economic and climate goals. This is not about a headline-grabbing measure or short-term gestures. It is about steady considered governing, recognising the strain that families are under, particularly in meeting everyday costs such as fuel, heating and transport, and acting to ensure that a temporary shock does not become a lasting hardship. For families trying to balance the weekly household budget, that approach matters. It reflects an effort that responds carefully, fairly and in the best interests of all those we represent.

For those reasons, I commend the motion.

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