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Dáil Éireann debate -
Wednesday, 1 May 2024

Vol. 1053 No. 3

Petrol and Diesel Excise Rate Increases: Motion [Private Members]

The following motion was moved by Deputy Pearse Doherty on Tuesday, 30 April 2024:
That Dáil Éireann:
notes that:
— AA Ireland's latest monthly Fuel Price Survey has reported a surge in petrol and diesel prices over the recent period;
— these are the highest prices reported in 2024, with almost a 13 cent increase in petrol and a 9 cent increase in diesel since January 2024; and
— fuel prices have risen by more than 30 per cent in the past three years;
acknowledges that, as of 1st April, the Government chose to increase the price of petrol and diesel for households despite the fact that many households continue to struggle under the cost-of-living crisis;
rejects the Government's plan to further increase fuel costs for workers and families twice more this year; and
mandates the Government to scrap its plans to increase the price of petrol and diesel on 1st August and yet again on 9th October, and reverse the increase that took place on 1st April.
Debate resumed on amendment No. 1:
To delete all the words after "Dáil Éireann" and substitute the following:
"notes that:
— the volatility in fuel prices experienced now and over the last two years is due to a variety of geopolitical issues, including conflict in the Middle East and Ukraine, none of which the Government has control or influence over;
— crude oil is an internationally traded commodity, and its price is determined by changing global demand, and while the price of a barrel of oil has increased in recent weeks, prices are well below the highs of more than $110 a barrel experienced for much of 2022;
— figures published this week by the Central Statistics Office show that the annual rate of inflation fell to 1.6 per cent in April, the lowest rate of increase since mid-2021;
— within the above constraints, the Government has recognised the struggles many people and businesses have faced with increasing fuel prices, and has been very pro-active in responding to these fuel cost challenges over the last two years;
— in particular, the provision of temporary reductions in the rate of non-carbon Mineral Oil Tax applying to diesel, petrol and marked gas oil (MGO), which were due to be reversed in October 2023, but were further extended in Budget 2024;
— to date, the reductions are estimated to have cost over €1.2 billion in terms of revenue foregone since their implementation in March 2022;
— in their pre-Budget submission for 2024, Sinn Féin provided for a full restoration of excise from April 2024, meaning an increase of 8 cent, 6 cent, and 3.4 cent in a litre of petrol, diesel and MGO respectively earlier this month under the Sinn Féin proposals, instead of a two-step restoration proposed by the Government; and
— the cost in 2024 of the measures proposed in a previously published Sinn Féin motion is approximately €165 million, which has not been provided for in the party's budgetary proposals;
recalls that:
— in addition to its fuel excise reductions, the Government has made substantial fiscal support available to assist with the cost-of-living challenges amounting thus far to some €12 billion;
— Budget 2024 provided for €2.7 billion in once-off cost-of-living measures (net of windfall gains from the energy sector) which included;
— extending the 9 per cent Value Added Tax rate for gas and electricity to 31st October, 2024;
— extending the reduced rate of excise levied on fuels;
— three €150 electricity credits; and
— €1.1 billion in social welfare and other expenditure measures;
— this approach to the cost-of-living challenge balances the need to provide the necessary fiscal support to households and firms while, at the same time, avoiding a situation whereby the Government's fiscal response becomes part of the inflation problem;
— the policy response has been focussed on measures that are temporary, timely and targeted at those most in need; and
— Government has also been conscious of rising borrowing costs as well as the need to preserve price signals, in other words, the need to avoid interfering with the transition to carbon-neutrality;
recognises that:
— carbon tax is a key pillar underpinning the Government's Climate Action Plan 2024, to halve emissions by 2030, and reach net-zero no later than 2050;
— the Programme for Government: Our Shared Future committed to increasing carbon tax and the Finance Act 2020 provides for a 10-year trajectory for carbon tax increases to reach €100 per tonne of CO2 by 2030;
— a significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long-term, provide support against fuel price impacts by reducing our reliance on fossil fuels;
— analysis, undertaken using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package, has confirmed that the net impact of the combined measures is progressive, and households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures; and
— in the long run the best way to protect Ireland from the impact of international fossil fuel prices is to reduce our dependence on them, and we will achieve this through the progressive decarbonisation of the Irish economy and society, and through the steps that will be taken to meet the Government's commitment to reach net-zero greenhouse gas emissions by 2050; and
further recognises that:
— the Minister for Finance will continue to monitor and review the position in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024; and
— Budget 2025 is the appropriate time for the Government to set out its taxation and expenditure decisions in response to the cost-of-living pressures currently being faced by many households.".
-(Minister for Finance)

I must now deal with a postponed division relating to the motion regarding petrol and diesel excise rate increases. On Tuesday, 30 April 2024, on the question, "That the amendment to the motion be agreed to", a division was claimed and in accordance with Standing Order 80(2), that division must be taken now.

Amendment put:
The Dáil divided: Tá, 71; Níl, 57; Staon, 0.

  • Brophy, Colm.
  • Browne, James.
  • Bruton, Richard.
  • Burke, Colm.
  • Butler, Mary.
  • Byrne, Thomas.
  • Cahill, Jackie.
  • Calleary, Dara.
  • Cannon, Ciarán.
  • Carroll MacNeill, Jennifer.
  • Chambers, Jack.
  • Collins, Niall.
  • Costello, Patrick.
  • Coveney, Simon.
  • Creed, Michael.
  • Crowe, Cathal.
  • Devlin, Cormac.
  • Dillon, Alan.
  • Donnelly, Stephen.
  • Donohoe, Paschal.
  • Duffy, Francis Noel.
  • Durkan, Bernard J.
  • English, Damien.
  • Farrell, Alan.
  • Feighan, Frankie.
  • Fleming, Sean.
  • Foley, Norma.
  • Griffin, Brendan.
  • Haughey, Seán.
  • Higgins, Emer.
  • Kehoe, Paul.
  • Lahart, John.
  • Lawless, James.
  • Leddin, Brian.
  • Madigan, Josepha.
  • Martin, Catherine.
  • Martin, Micheál.
  • Matthews, Steven.
  • McAuliffe, Paul.
  • McConalogue, Charlie.
  • McEntee, Helen.
  • McGrath, Michael.
  • McGuinness, John.
  • Moynihan, Aindrias.
  • Moynihan, Michael.
  • Murnane O'Connor, Jennifer.
  • Naughton, Hildegarde.
  • Noonan, Malcolm.
  • O'Brien, Darragh.
  • O'Brien, Joe.
  • O'Callaghan, Jim.
  • O'Connor, James.
  • O'Dea, Willie.
  • O'Donnell, Kieran.
  • O'Donovan, Patrick.
  • O'Dowd, Fergus.
  • O'Gorman, Roderic.
  • O'Sullivan, Christopher.
  • O'Sullivan, Pádraig.
  • Ó Cathasaigh, Marc.
  • Ó Cuív, Éamon.
  • Phelan, John Paul.
  • Rabbitte, Anne.
  • Richmond, Neale.
  • Ring, Michael.
  • Smith, Brendan.
  • Smyth, Niamh.
  • Smyth, Ossian.
  • Stanton, David.
  • Troy, Robert.
  • Varadkar, Leo.

Níl

  • Andrews, Chris.
  • Bacik, Ivana.
  • Boyd Barrett, Richard.
  • Browne, Martin.
  • Buckley, Pat.
  • Clarke, Sorca.
  • Collins, Joan.
  • Collins, Michael.
  • Conway-Walsh, Rose.
  • Cronin, Réada.
  • Crowe, Seán.
  • Cullinane, David.
  • Daly, Pa.
  • Doherty, Pearse.
  • Donnelly, Paul.
  • Ellis, Dessie.
  • Farrell, Mairéad.
  • Fitzmaurice, Michael.
  • Fitzpatrick, Peter.
  • Gannon, Gary.
  • Gould, Thomas.
  • Guirke, Johnny.
  • Harkin, Marian.
  • Healy-Rae, Danny.
  • Healy-Rae, Michael.
  • Howlin, Brendan.
  • Kenny, Gino.
  • Kenny, Martin.
  • Kerrane, Claire.
  • Mac Lochlainn, Pádraig.
  • McGrath, Mattie.
  • McNamara, Michael.
  • Mitchell, Denise.
  • Munster, Imelda.
  • Murphy, Catherine.
  • Murphy, Verona.
  • Mythen, Johnny.
  • Nash, Ged.
  • Nolan, Carol.
  • O'Callaghan, Cian.
  • O'Donoghue, Richard.
  • O'Reilly, Louise.
  • O'Rourke, Darren.
  • Ó Broin, Eoin.
  • Ó Laoghaire, Donnchadh.
  • Ó Murchú, Ruairí.
  • Ó Snodaigh, Aengus.
  • Pringle, Thomas.
  • Ryan, Patricia.
  • Sherlock, Sean.
  • Shortall, Róisín.
  • Smith, Duncan.
  • Stanley, Brian.
  • Tóibín, Peadar.
  • Tully, Pauline.
  • Ward, Mark.
  • Wynne, Violet-Anne.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.
Amendment declared carried.
Question put: "That the motion, as amended, be agreed to."
The Dáil divided: Tá, 70; Níl, 55; Staon, 0.

  • Brophy, Colm.
  • Browne, James.
  • Bruton, Richard.
  • Burke, Colm.
  • Butler, Mary.
  • Byrne, Thomas.
  • Cahill, Jackie.
  • Calleary, Dara.
  • Cannon, Ciarán.
  • Carroll MacNeill, Jennifer.
  • Chambers, Jack.
  • Collins, Niall.
  • Costello, Patrick.
  • Coveney, Simon.
  • Creed, Michael.
  • Crowe, Cathal.
  • Devlin, Cormac.
  • Dillon, Alan.
  • Donnelly, Stephen.
  • Donohoe, Paschal.
  • Duffy, Francis Noel.
  • Durkan, Bernard J.
  • English, Damien.
  • Farrell, Alan.
  • Feighan, Frankie.
  • Fleming, Sean.
  • Foley, Norma.
  • Griffin, Brendan.
  • Haughey, Seán.
  • Higgins, Emer.
  • Kehoe, Paul.
  • Lahart, John.
  • Lawless, James.
  • Leddin, Brian.
  • Madigan, Josepha.
  • Martin, Catherine.
  • Martin, Micheál.
  • Matthews, Steven.
  • McAuliffe, Paul.
  • McConalogue, Charlie.
  • McEntee, Helen.
  • McGrath, Michael.
  • McGuinness, John.
  • Moynihan, Aindrias.
  • Moynihan, Michael.
  • Murnane O'Connor, Jennifer.
  • Naughton, Hildegarde.
  • Noonan, Malcolm.
  • O'Brien, Darragh.
  • O'Brien, Joe.
  • O'Connor, James.
  • O'Dea, Willie.
  • O'Donnell, Kieran.
  • O'Donovan, Patrick.
  • O'Dowd, Fergus.
  • O'Gorman, Roderic.
  • O'Sullivan, Christopher.
  • O'Sullivan, Pádraig.
  • Ó Cathasaigh, Marc.
  • Ó Cuív, Éamon.
  • Phelan, John Paul.
  • Rabbitte, Anne.
  • Richmond, Neale.
  • Ring, Michael.
  • Smith, Brendan.
  • Smyth, Niamh.
  • Smyth, Ossian.
  • Stanton, David.
  • Troy, Robert.
  • Varadkar, Leo.

Níl

  • Andrews, Chris.
  • Bacik, Ivana.
  • Boyd Barrett, Richard.
  • Browne, Martin.
  • Buckley, Pat.
  • Clarke, Sorca.
  • Collins, Joan.
  • Collins, Michael.
  • Conway-Walsh, Rose.
  • Cronin, Réada.
  • Crowe, Seán.
  • Cullinane, David.
  • Daly, Pa.
  • Doherty, Pearse.
  • Donnelly, Paul.
  • Ellis, Dessie.
  • Farrell, Mairéad.
  • Fitzmaurice, Michael.
  • Fitzpatrick, Peter.
  • Gannon, Gary.
  • Gould, Thomas.
  • Guirke, Johnny.
  • Harkin, Marian.
  • Healy-Rae, Danny.
  • Healy-Rae, Michael.
  • Howlin, Brendan.
  • Kenny, Gino.
  • Kenny, Martin.
  • Kerrane, Claire.
  • Mac Lochlainn, Pádraig.
  • McNamara, Michael.
  • Mitchell, Denise.
  • Munster, Imelda.
  • Murphy, Catherine.
  • Murphy, Verona.
  • Mythen, Johnny.
  • Nolan, Carol.
  • O'Callaghan, Cian.
  • O'Donoghue, Richard.
  • O'Reilly, Louise.
  • O'Rourke, Darren.
  • Ó Broin, Eoin.
  • Ó Laoghaire, Donnchadh.
  • Ó Murchú, Ruairí.
  • Ó Snodaigh, Aengus.
  • Pringle, Thomas.
  • Ryan, Patricia.
  • Sherlock, Sean.
  • Shortall, Róisín.
  • Smith, Duncan.
  • Stanley, Brian.
  • Tóibín, Peadar.
  • Tully, Pauline.
  • Ward, Mark.
  • Wynne, Violet-Anne.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.
Question declared carried.
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