Seanad debates
Thursday, 2 July 2026
Finance Bill 2026: Second Stage
2:00 am
Mark Daly (Fianna Fail)
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The debate will follow the normal pattern. The Minister of State will speak for ten minutes, group spokespersons for eight minutes, all other Senators for four minutes and, with no other Senators offering, the Minister of State will conclude the debate. I welcome the Minister of State, Deputy Troy, to the House.
Robert Troy (Longford-Westmeath, Fianna Fail)
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I appreciate the opportunity to speak on the Bill on behalf of the Tánaiste and Minister for Finance. The Bill has been passed by the Dáil. It is relatively short and provides for some of the energy support measures introduced by Government in March and April to alleviate the impacts of energy price inflation owing to the disruption in the Middle East.
I will start by addressing the recent Government announcement to extend certain energy support measures, some of which are included in this Bill. As the House will be aware, on 30 June the Government announced an extension of the energy support measures, including reduced excise rates and increased repayment rate under the diesel rebate scheme. Committee Stage recommendations will be brought forward in this regard next week.
As we stated at the outset of our response in March, the Government is acutely aware of the impacts of energy price inflation on households and businesses. Our initial intervention was designed to provide immediate and substantive supports to households and businesses while providing time for ongoing monitoring of the situation and enabling us to adapt our response as needed. We have been agile in our response, intervening again in April to provide further temporary relief owing to the sustained impacts of the disruption in the Middle East on energy markets. We have continued this approach, actively monitoring developments and energy market activity before and since the agreement on the memorandum of understanding between the US and Iran. The agreement that has been reached between the United States and Iran to solidify their ceasefire and reopen the Strait of Hormuz is a very welcome development. Indeed, over recent weeks there has been a significant easing in wholesale energy prices, with spot prices for Brent crude oil currently standing at around $73 a barrel. In the context of recent wholesale prices which had peaked at around $120 a barrel in late April, this is a very welcome development. In terms of prices at the forecourts, there has been a steady decline in recent weeks, with current prices now, on average, around pre-conflict levels at around €1.76 per litre for both petrol and diesel. CSO figures show a tentative easing of inflation in June, with the headline rate of annual inflation moderating slightly to 3.3% and energy prices falling by 2% in the month. The Government expects a continued reduction in wholesale energy prices to pre-war levels to ultimately be reflected through lower fuel prices at the forecourts.
From a macroeconomic perspective, the Department of Finance identified three scenarios in its spring forecasts published in April; thankfully it appears that the risk of the most severe outcome is now receding. Of course, the situation remains uncertain and it is important to highlight we are very much aware of this. This is reflected in our policy approach which is providing for a cautious and gradual return to standard levels of fuel excise.
I will now speak to each section of the Finance Bill. The Finance Bill we are discussing today is the legislative basis for the tax elements of the energy support measures announced by Government to mitigate the most severe aspects of recent energy price inflation. Section 1 relates to the diesel rebate scheme. The diesel rebate scheme was introduced in 2013 to provide support for essential road users at times when the price of auto diesel was relatively high. The scheme provides qualifying road haulage and passenger transport operators with a partial repayment of mineral oil tax paid on auto diesel. In 2025, close to €39 million was paid out under the scheme, providing targeted support to the road haulage and passenger transport sectors. The diesel rebate scheme also provides support to the wider economy dependent on haulage as a distribution network. Households and other businesses benefit indirectly by virtue of reduced distribution costs. The amendment we are speaking to today provides for an increase in the repayment cap from 7.5 cent per litre to 12 cent per litre on a temporary basis. As I have referred earlier in my speech, the legislation before us currently provides for this temporary enhancement to apply for fuel purchased between 1 January and 30 June 2026. However, we will extend this to apply until the end of September when we introduce the Government's amendments next week.
Section 2 provides for the current excise reductions of 30 cent per litre for auto diesel, 25 cent per litre for petrol and 5.4 cent per litre for green diesel. Taking the 2 cent per litre NORA levy reduction into account this brings the total reduction to 32 cent per litre for auto diesel, 27 cent per litre for petrol and 7.4 cent per litre for green diesel. The current text of the Bill provides for these reductions to apply until 31 July 2026. As mentioned earlier, following review and monitoring of the situation, and noticing the significant reduction in global oil prices, as well as pump prices, the Government has decided to extend the fuel excise reduction until 31 August 2026.
From 1 September 2026, there will be a gradual phasing out in four phases. On 1 September, there will be an increase of 7 cent per litre for petrol and 8 cent per litre for diesel; on 1 October, there will be an increase of 8 cent per litre for petrol and diesel; on 1 November, there will be an increase of 5 cent per litre for petrol, 7 cent per litre for diesel and 2.7 cent for green diesel; and on 1 December, there will be a final restoration of 5 cent per litre for petrol, 7 cent per litre for diesel and 2.7 cent for green diesel.
Separately, the Minister for Climate, Energy and the Environment is also providing for the extension of the NORA levy reduction until 31 August. A restoration of 2 cent per litre of the NORA levy will apply on 1 September for affected fuels such as petrol, diesel, green diesel and kerosene.
Section 2 also provides for the deferral of the planned 1 May carbon tax increase on certain mineral oil fuels, including kerosene, heating oil and marked gas oil. Sections 3 and 4 also deal with the deferral of the carbon tax increase for natural gas and solid fuels.
The decision to defer the carbon tax increase was made in recognition of the sustained higher level of inflation that marked gas oil, MGO, and kerosene, in particular, faced earlier this year. Similar to the pump prices for diesel and petrol, both MGO and kerosene prices have also reduced in recent weeks with both currently around €1.20 per litre. The deferral of the carbon tax increase provides additional relief from price pressures to consumers of these fuels as well as consumers of natural gas and solid fuels.
The decision reflects the Government’s continued commitment to balancing climate ambition with the need to mitigate the impacts on households and businesses from the energy price shock. The deferral of the carbon tax increase is a significant decision. This the first instance of such a delay since its multi-annual trajectory of carbon tax increases was introduced in the Finance Act 2020 and this decision was not taken lightly. Since the introduction of carbon tax increases in the Finance Act 2020, the Government has ensured that the revenues raised are purposefully recycled to fund the just transition measures. Accordingly, carbon tax revenues have been used to fund energy efficient upgrades in homes and communities, have supported decarbonisation across agriculture and transport and have underpinned measures such as the increases to the fuel allowance.
The reason we are all here today, to discuss these energy support measures, again underscores how important it is over the longer term that we transition away from fossil fuels. The Government is committed to supporting those most vulnerable to fuel poverty in the longer term by supporting the roll-out of a national retrofit programme. In budget 2026, the Government provided a record allocation of €640 million, of which €580 million is funded by the carbon tax, thus allowing us to target 73,000 home energy upgrades this year.
The latest data from the Sustainable Energy Authority of Ireland shows that we are delivering on this increased ambition. The data also shows that the retrofit sector is mobilising and responding to the growing interest in home energy upgrades underpinned by Government-funded SEAI grant support. The almost doubling of applications so far in 2026, year on year, means that the SEAI processed 29,000 applications from January to March. Among the most noteworthy increases are the more than 7,000 applications for window and door upgrades in a new grant that was introduced. There have been over 1,730 applicants for attic insulation, which is up 81% year on year; over 1,000 applicants for cavity wall insulation, which is up 62% year on year; and over 350 applicants for heat pump installations, which is up 95% year on year.
Since 2019, over 257,000 home energy upgrades have been delivered thanks to Government funding of over €1.7 billion. In total, €4.2 billion of carbon tax revenue has been allocated for expenditure on just transition and climate measures since 2020.
It is not possible to offset all of the increases in fuel prices that took place earlier this year using the tax system. These increases have been driven by market factors. Thankfully, these market factors have become more favourable in recent weeks. The measures which this Bill legislates for have provided significant mitigation support for households and businesses experiencing the most acute impacts of the increases in fuel prices earlier this year. Further mitigation has been provided through non-tax support such as the four-week extension of the fuel allowance scheme, which has benefited almost 500,000 households, and targeted schemes that support farmers, agricultural contractors, fishers, hauliers and coach operators.
As I said, this is a short but important Finance Bill. The Bill provides for a number of targeted tax changes and specific measures to support households and businesses. I am pleased to commend the Bill to the House.
Mark Daly (Fianna Fail)
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Before I call on the first speaker, I welcome to the Gallery the former footballer, Gareth Farrelly. He played for Aston Villa FC, Everton FC and Bolton Wanderers FC. I thank him for coming here. As a guest of Senator Evanne Ní Chuilinn, he is most welcome to Seanad Éireann. I would love to hear his views on the World Cup and who we should back for the final.
Anois, an Seanadóir Pat Casey.
Pat Casey (Fianna Fail)
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I welcome the Minister of State to the House this morning. I also welcome this opportunity to speak on the Finance Bill and its passage through the Senate.
The Finance Bill is important and practical legislation that gives full effect to the energy and cost-of-living measures already approved by Dáil Éireann. It forms part of the Government's response to the significant pressures experienced by households, farmers and businesses as a result of the high energy costs.
The Government acted decisively when international energy markets became increasingly volatile. Excise duty was reduced on diesel by 32 cent per litre, on petrol by 27 cent per litre and the rate on marked gas oil or green diesel was also significantly reduced. In addition, the planned increase in carbon tax was deferred providing further relief for households and businesses. These measures are particularly important for working families who continue to face the pressure of household budgets.
While fuel prices have eased somewhat, many people remain concerned about the wider cost of living, including housing, transport and everyday expenses. In that context, the Government's intervention was both necessary and responsible.
The Finance Bill is important for key sectors of the economy like farmers, hauliers, contractors, bus operators and small businesses as all depend heavily on fuel. The temporary enactment of the diesel rebate scheme has provided important support to these sectors and helped to limit wider inflationary pressures.
The Government has also announced the extension of the temporary excise reduction and NORA levy reduction until the end of August, followed by a phased restoration of the rates between September and December. This is a balanced approach and avoids a sudden increase in cost while allowing supports to be withdrawn gradually as market conditions improve. Importantly, it provides certainty. Families and businesses can plan ahead knowing that a return to normal excise rates will be measured and predictable.
While energy prices have declined from their earlier peaks, international circumstances still remain uncertain. It is, therefore, prudent that the Government continues to closely monitor developments and respond when necessary. Overall this Bill represents a practical response to extraordinary global circumstances, supports families, protects jobs, assists vital sectors of the economy and helps to shield people from external energy shocks beyond their control. For those reasons, Fianna Fáil will be supporting this Bill.
Victor Boyhan (Independent)
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I welcome the Minister of State to the House and take on board everything that Senator Casey has clearly said.
I welcome the clarity brought by the Bill. To be realistic, the Seanad is a revising Chamber but this Bill has been approved by Dáil Éireann and we know the arithmetic.The Government said there would be no cliff edge and that is clearly not going to happen, which is good. I welcome that.
I do not want to take up all of my time. I flag agriculture. I sit on the Oireachtas Joint Committee on Agriculture and Food and am elected to the Agricultural Panel. I have an interest in the horticultural and forestry sectors, as well as the broader agricultural sector, but particularly the agrifood sector. The Minister of State knows, as do I and everyone else in the Chamber, that the agricultural sector is heavily reliant on green diesel and other forms of energy and diesel. Energy has a very significant role and I acknowledge the Government's support and commitment to the horticultural sector. It brought in particular measures to support the sector, particularly around energy. I am thinking in particular of mushroom production. We have perhaps the finest production of mushrooms in Europe, if not the world. Our mushrooms are exported all over Europe. It is a time-sensitive fresh food product so it is critical there is no break or delay in the roll-over and turnover of production. We also have salad crops. We want to grow more food. It is part of the Bord Bia strategy, Food Vision 2030. It is also Government policy that we continue to expand the growth of salads, vegetables and fruit crops. We know that with our climate, there is a need to have a lot of this under cloches, tunnels and glass, etc. Energy is, therefore, critically important, particularly diesel, as it is to the forestry sector. That sector is reliant on it. We also have ambitious plans for forestry. We have ambitious plans for agriculture. Fuel is a critical component of that. The Minister of State will be aware of that significance. He will also be aware that the Irish Farmers Association, IFA, has issued a number of calls in recent days in commentary in relation to these supports.
All I am saying is that we must keep our antennae up. We must be responsive and the Government must be agile and flexible enough to be able to turn up or recalibrate the supports, particularly for the sector that I am speaking about. There is volatility out there. There is volatility and uncertainty in the world order and the impact on oil. That is important. What I am saying is that we must continue to be open to monitoring the situation and being responsive to the needs of this particular sector. People also want that in the private domestic home sector. That is important. The Minister of State mentioned retrofit, which is important. We need to expand our ambition for retrofitting, particularly in areas where there are carbon neutral alternatives.
Last night, at a meeting of the Committee on Agriculture and Food, attended by me and Senator Collins as members of the committee, we had a whole debate about hemp. Everybody there spoke about the ambition and the science of hemp in the context of insulating our homes. Oireachtas Members of all parties and none, and the Minister of State's party is well represented on the committee, were highly impressed at the possibilities and options for retrofitting our homes. We know that if our homes are properly retrofitted and the supports are put in place for that programme of retrofitting, we can reduce the consumption of fossil fuels and that has to be the ambition for all of us.
There are many strands to this. I thank the Minister of State for coming to the House today. I thank him for the clarity in the delivery of his message. The request is simple. I do not doubt the Government in this area but it is important to put on the record that we are agile, nimble and flexible in our responses, particularly for the agriculture, horticulture and food sectors, which are important. Agricultural contractors are also important.
Joe O'Reilly (Fine Gael)
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I am happy that the previous speaker remembered to mention his nominating base in his speech. I was afraid he might forget. He did it extremely well, to be fair.
I welcome the Minister of State to the House. I thank him for his opening remarks. A number of the general things he said at the end of his contribution are extremely important. It is not unnecessarily or unreasonably partisan for a Government speaker to say that we can be very proud of the way the economy was managed over recent years to create budget surpluses to give us the flexibility to respond to the situation we are in. That is a great achievement. Were it not for the prudent management of the economy by successive Governments recently, we would not be in the position we are to be flexible and nimble. It is not an unreasonable thing to say. If the opposite were merited, we would be saying it equally loudly.
The Minister of State made a point that was echoed by my colleagues, Senators Boyhan and Casey, about the importance of the necessary transition from fossil fuels. I would like to hear the Minister of State respond at the end of the debate. We are doing a lot around wind energy, including offshore wind energy, and more needs to be done, but as a State and a Government, we seem to be shying away from wave energy, where there is huge potential. I know there are considerable capital outlays in that area. The Minister of State might respond on that point.
The Minister of State spoke about retrofitting and the good news from the SEAI about the number of applications. That is good. It is significant to see the increase in the number of applications to retrofit houses. That, in parallel with a switch at a broader level to green energy, is wonderful and I welcome it. That is good. I know the Minister of State is here to listen and he is a proactive Minister of State. He is here to pick up the useful things we want to tell him. One of the things I am picking up is that the SEAI grants are excellent and the SEAI personnel are excellent. I had interactions with them recently and found them to be brilliant. All of that is good, but there can be an unnecessary delay between the time of application and the payment of the grant. Perhaps that is improving. The Minister of State might speak to that, or at least check it out at Department level. I would be interested in that, as I think we all would be.
There is another issue that I am interested in. From the CSO figures that the Minister of State quoted, this is being well monitored but we need to monitor whether price decreases are being passed on to ensure there is no price gouging or bad practice in passing on decreases or reductions in prices. The Minister of State might speak to that too and the steps being taken to ensure there is tight policing there because consumers deserve that.
I welcome the opportunity to support and speak to the Bill. Fuel and energy costs continue to be one of the biggest concerns facing families, businesses and communities across Ireland. While prices have eased somewhat in recent months, they remain significantly higher than they were only a few years ago. That is particularly true for rural Ireland, where many people simply have no alternative but to travel by car. The car is important. Our businesses rely on transport, haulage, etc., and on cars to remain competitive and in business. I welcome the measures in the Bill. The increase in the diesel rebate for qualifying road transport operators is a practical measure that recognises the important role the haulage sector plays in keeping our economy moving. We responded well and flexibly in that regard. As the Minister of State knows, margins in the haulage sector are tight. There is now potential for much more pressure so the haulage sector needed that response, as did agricultural contractors.
There is an anomaly or lacuna. It would be relevant in the next budget to look at the price of kerosene. We extended the fuel allowance for a month, which was great, but there is a sector of people who are marginally above minimal income levels, etc., but are finding it very difficult to buy kerosene. That needs to be considered. People on specific payments, such as disability payments, etc., need to be looked after. I would like the Minister of State to speak to that issue in his response.Representing a county like Cavan, I know the sheer importance of rural transport and cars, lorries, tractors and all of that. We do not have a railway network in Cavan. Everyone will be familiar, sadly, with the song, "No Train To Cavan". There were trains to Cavan, but they were lost. We have to get them back, and hopefully we will. The movement to get a train line to Navan is very welcome in this context.
At the same time, we remain committed to Ireland's climate objectives. However, climate action and affordability have to go together. The transition to a lower carbon economy will only succeed if it is practical, balanced and supported by the public. Measures such as these demonstrate that it is possible to provide targeted relief while continuing to move towards our long-term goals. The great thing about the carbon tax is that it is ring-fenced and the revenues are then used and targeted for retrofitting and to support energy initiatives and a lower dependence on fossil fuels. The strength and relevance of the carbon tax are that it is going where it should be going.
Ultimately, this Bill is about responding to current challenges in a sensible way. It supports transport operators, helps to ease the burden on families and businesses and recognises the unique challenges facing rural Ireland, while maintaining our commitment to responsible public finances. A great example of this is the amendment being brought in next week, which will ensure there will not be a cliff edge at the end of the supports and that they will be continued to cushion people in a graduated way.
The Bill will provide, and has provided, temporary reliefs from high energy costs. The support to the transport and haulage sector is important to the wider economy. All in all, the Bill is to be welcomed. We can be very proud of how we as a country were the best responders in western Europe to the crisis. That does not mean, however, that we should be complacent about the future; we are not.
Anne Rabbitte (Fianna Fail)
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I welcome visitors from the Lighthouse Project to the Gallery. I also welcome the Ballymun and Finglas youth groups. Everyone is very welcome. They are visitors of our esteemed Senator Aubrey McCarthy. It is good to see them and Councillor Gayle Ralph.
Joanne Collins (Sinn Fein)
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I genuinely fear that we are facing into a winter of discontent due to the increase and the plans this Government has put forward. The decision to restore fuel excise duty increases from September onwards may be insignificant around the Cabinet table, but it is very significant in the parts of the country I represent and for the people I represent, the workers commuting every day, the parents dropping their children to school, families travelling to hospital appointments or just in general for people living in rural Ireland who simply have no alternative but to use their cars.
The period from September through to Christmas can be one of the most expensive times in households, especially for parents with children going back to school and having to buy school uniforms. It is also a time of colder weather, longer nights, higher electricity bills and a need for more heating oil in households. Home heating oil has never seen a cut. We also have the secondary school voluntary payments, which are anything but voluntary. Barnardos has repeatedly highlighted the enormous burden of back-to-school costs. It reckons that it costs €1,700 for a primary school student each year and up to €3,000 for a secondary school student. This imposes huge costs on families coming into this time of year.
There was another blow yesterday, with the introduction of the €3 charge on every parcel coming in from outside the EU. This disproportionately affects people in this country given the trade agreement we have with Britain. People trying to save a little bit by ordering online will have €3 added to every parcel. This is going to place a huge burden on families and households. Families are being squeezed in every direction, and the response we are getting from the Government is to increase the cost of filling a car. It is just not on. Families cannot afford it. The Government had choices. It could have protected ordinary people and looked elsewhere for this revenue. It could have tackled the sweetheart tax arrangements it has with the banks, under which they get to continue offsetting their losses from the financial crash against the enormous profits they are making today. Instead, once again, it is the easy option of making the working people pay for it.
The Government likes to boast about the €750 million package of supports announced after the protests. Do not get me wrong - the haulage sector, contractors and farming sector needed these supports, but the everyday person needed them too. I have met so many people I stood with in Foynes during the week of protests. They have told me they stood there for a week and then walked away completely deflated because their bosses got a rebate. They still have to drive to work at the yards to get into their trucks. Their wives, partners and children are still driving. They are driving to college and to take the kids to school. They did not get a rebate. That should have been taken off at the pump. The haulage sector is still giving out that it is three months down the line and it is still waiting for its rebates. Deputy Pearse Doherty has raised plenty of times in the Dáil that there are sectors not getting this support on time. If this had been done at the pumps, it would have been instant and would have benefited every single person as well as the haulage sector. No supports were provided for the healthcare assistants driving to work every day and none for the carers who have to drive between appointments. There were no supports for any ordinary families in this State. They were forgotten about. A direct reduction in costs at the pump would have delivered immediate help for all sectors.
We have also seen a lot of misinformation and lies over the last couple of months about carbon taxes. What is crucial here is that people understand the facts, and the fact is that carbon taxes are an ever-increasing tax on essentials. You cannot tax people into using public transport when it does not exist, and it does not exist. It might exist in Dublin, but I guarantee that when you go outside the M50, it does not exist to work for people who need it. You cannot tax people into buying electric vehicles that they cannot afford. You cannot tax people into heating their homes with different forms of heat when there is no realistic alternative. That is not climate action. That is simply making life harder for those already struggling.
These policies do not reduce emissions. What they do is to increase deprivation. They force families to keep the heating off. They force older people to sit in cold houses or to heat one room at a time and use that room day and night. They force parents to choose between filling an oil tank and paying other essential bills. A Government's priorities are revealed by the choices it makes. This Government has chosen to protect the banks while making families pay more. It has chosen complicated schemes instead of straightforward supports and headlines over help. The people paying the price are ordinary workers, families and rural communities, who deserve so much better.
For many people in Dublin, a car is a choice. Where I am from and for the people I represent, it is not a choice but a necessity. We do not have public transport. We do not have trains or a Luas. We barely have taxis. This affects every single person in County Limerick when they put fuel in their car. I do not care if the Government is going to do this bit by bit. At the end of it, we are still going to be up at high costs. I hear the price of a barrel of oil has come down, but we do not see it here. Costs are the same as they were when excise duty was taken off and just before the war in Iran. If the Government puts the cost of fuel back up, we are not going to see a reduction if the price of a barrel of oil comes down. When the cost of a barrel of oil goes up, the price of fuel in this country goes up within an hour. When the cost of a barrel of oil goes down, it takes months for the price of fuel to come down.
Sarah O'Reilly (Aontú)
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I thank the Minister of State very much for coming into the House. I welcome the extension of the reduction in excise duty.
One of the fundamental problems in this country is that the Government is taxing fuel too heavily. While the Government has extended the reduction in excise rates, it has only kicked the can further down the road until 1 August. It still plans to increase excise duty on the cost of petrol and diesel five times before the end of the year. It should be telling people to enjoy the one-month extension because they will have to empty their pockets come wintertime.The Government remains one of the biggest drivers of high prices. Diesel costs have risen dramatically over recent years and this has pushed up not just transport costs but the price of every item in our shops. Each family in the country is paying €3,000 more per year for exactly the same goods they were buying ten years ago. The price of 1 kg of chicken breasts was €5 in 2022 and is now €11. It has more than doubled in four years. That might not mean much to Ministers on €200,000 a year but for the average family it is an insurmountable increase. The Tánaiste said retailers should pass on lower wholesale prices to customers. That is unbelievable when this Government takes more than 50% in tax on fuel. A person filling their tank is spending more on tax than the cost of the fuel itself.
The answer to a cost-of-living crisis is not simply to collect more tax. This Government has shown it does not spend public money efficiently. Departmental budgets are routinely exceeded while there are waste overruns of hundreds of thousands, and sometimes millions, of euro. I will give an example. Years ago when I was raising four boys alone and working and running a car I begrudged every penny I gave over in taxes to the government. When you hear of waste and overruns you know would have spent that money really well and it is really hard to take. I have been there. I have been poor and I know what that frustration is like. This Government needs to do what the rest of the country does and learn to live within its means. The pain the people tried desperately to convey in the springtime has eased and the Minister of State must acknowledge that it has eased because of the measures the Government has taken, but it is going to systematically undo them before the end of the year. The frustration of the people was palpable. Let us admit fuel taxes imposed went way too far. Kerosene, petrol and diesel need to be affordable and I ask the Government to remember that in September. Carbon tax needs to be stopped and excise duty must be reduced. I advise the Government to listen to the people.
Anne Rabbitte (Fianna Fail)
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I call on the Minister of State to respond.
Robert Troy (Longford-Westmeath, Fianna Fail)
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I thank all Senators for their contributions. We can all agree on one issue, which is that there are high energy costs and we had to make interventions to ensure we could mitigate the most severe impacts of those costs. I will go back and maybe answer some of the questions that were raised. People are talking about increasing excise duty but it is a restoring of excise duty. This was a temporary measure and I suppose the unfortunate thing is when you introduce a temporary measure some members of the Opposition then begin to claim it as a permanent measure.
Robert Troy (Longford-Westmeath, Fianna Fail)
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It was a temporary measure that was introduced in response to an international energy crisis, which was one of the worst such crises since the 1970s. I am sorry but Senator Collins cannot have it both ways. She is giving out that excise is increasing and the awful impact that is going to have on families and in the same breath she is saying we did nothing by reducing it - that no family has benefited from the reduction that was introduced. Those do not align. If people did not get a benefit on day one how is it going to harm them the second day?
Joanne Collins (Sinn Fein)
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No, I said they did not get anything from the €50 million package. You just heard it wrong.
Anne Rabbitte (Fianna Fail)
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Let the Minister of State respond.
Robert Troy (Longford-Westmeath, Fianna Fail)
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I am sorry but that is the point she made.
Robert Troy (Longford-Westmeath, Fianna Fail)
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She made the point that no-one benefited. She said the ordinary person pulling up at the forecourt did not benefit from the €750 million intervention the Government made but at the same time the restoration of the excise, which is in response to the fact international oil prices are dropping and the price of fuel at the pump is dropping, is going to have a detrimental impact. The Senator is contradicting herself with that point. When you add the two initial interventions and the interventions we will be bringing to this House next week to extend the reductions to August and then gradually restore the excise over a period of four months, they will cost almost €1 billion. That is the cost to the taxpayers, the people who are working, and it is right and proper it is done in a structured way when we see how international oil prices are. It would be wrong to simply say we can kick this on indefinitely, that there would be no cost to the Exchequer and to hell with the consequences. That would be wrong. Despite some people in the Opposition saying this was going to happen at the end of July and that nobody was listening, the Government has always maintained we would constantly monitor the situation and act accordingly and that is exactly what we are doing. We are acting in a responsible, prudent way in recognition of how international oil prices were.
On there being no supports, the Government has introduced free books, introduced free school meals and extended eligibility for the back-to-school clothing and footwear allowance so it can be availed of in respect of younger children. It would be great to have money to spend on every single ask not just from the Opposition but from the Government and Government Members. However, we have to ensure we have a balanced budget and that we spend within our means. Senator Joe O'Reilly made the point that if we did not have balanced budgets and budget surpluses in the last number of years we would not have been able to make the interventions we were able to make. It was because of the prudent management of the economy over a number of years that we were able to make the interventions that went towards mitigating the severity of the crisis. It did not alleviate it and no one on this side of the House is claiming it did, but it went towards mitigating it. Interventions went in a targeted way to the haulage industry and the agriculture industry and to low-income families via the increase in the fuel allowance. I do not ever expect we will have agreement across all sides of the House but it would be nice to have it recognised that this was a serious intervention in financial terms that, all told, will be €1 billion. Per capita it is one of the best interventions of any country in Europe.
Anne Rabbitte (Fianna Fail)
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When is it proposed to take Committee Stage?