Dáil Éireann Debate, Thursday - 28 April 2022
82. Deputy Jackie Cahill asked the Minister for Public Expenditure and Reform if he expects that there will be Supplementary Estimates in view of recent measures to tackle the cost of living; and if he will make a statement on the matter. [20569/22]
View answerDoes the Minister expect there will be Supplementary Estimates in view of the recent measures to tackle the cost of living, and will he make a statement on the matter?
The Government is aware of the challenges many households are facing due to increases in the cost of living, in particular those on lower incomes. The recent rise in inflation is a problem faced by almost every advanced economy in the world. We saw a fall in prices in 2020 as a result of the pandemic but, as the global economy recovers, we are faced with new challenges including rising energy prices and supply issues, which have been exacerbated by the terrible war in Ukraine. In this context, the Government has introduced measures focused on temporary supports that can quickly provide assistance to households.
In February, the Government announced a suite of measures with a value of over €500 million, including an uplift in the energy credit to €200 per domestic account, inclusive of VAT. Measures in respect of the fuel allowance, school transport, the drugs payment scheme, public transport and the working family payment were also prioritised. In light of the continued high fuel prices, further expenditure measures were subsequently introduced, with a temporary emergency support measure for licensed hauliers and an additional €100 lump sum payment to fuel allowance recipients to be paid in May.
Taking into account that the estimated cost of €400 million in respect of the energy credit was considerable relative to the original Estimate for the Department of the Environment, Climate and Communications, a Supplementary Estimate for Vote 29, to provide for the additional funding needed for the energy credit, was brought before the Dáil in March. Further Supplementary Estimates may be required later this year to provide for the other measures, to the extent that the related costs cannot be met within the existing allocations.
These expenditure measures, along with the excise duty reduction on petrol, diesel and marked gas oil introduced by the Minister for Finance and now extended until budget day in October 2022, and the VAT reduction from 13.5% to 9% on gas and electricity bills until the end of October, amount to €1 billion in aggregate. These measures provide substantial assistance towards mitigating, although of course not fully offsetting, the impact of rising prices.
I thank the Minister. He mentioned the emergency support scheme for licensed hauliers. I have been contacted by hauliers who transport livestock and, therefore, are exempt from having to have a haulier's licence to operate their business. Accordingly, they are not able to access any of the supports they have been given by the Minister towards the daily expenses of running their business. Obviously, they have all the same expenses as other businesses, with the increased costs of fuel and of running their business. Two hauliers who have contacted me have a contract, coincidentally, with the Department of Agriculture, Food and the Marine for the collection of reactors. The scheme is very much warranted and has attempted to reduce costs for hauliers, but livestock hauliers operating within the State are excluded from this support. Will the Minister address this and examine whatever small print needs to be changed to allow these hauliers to qualify for the support?
I fully accept that anyone in the business of providing a transport or haulage service is under great pressure at the moment because of the importance of fuel costs for them, which is why the Government brought forward the scheme the Deputy mentioned. The scheme, which applies to licensed hauliers, was introduced by the Minister for Transport, so I will undertake to raise with him and the Minister of State at his Department, Deputy Naughton, the specific issue the Deputy raised. The scheme, as currently constructed, relates to licensed hauliers, as the Deputy pointed out, whereas the example he cited relates to hauliers who are not licensed. The matter is one directly for the Department of Transport, but I will convey it to that Minister and I thank the Deputy for raising it.
I appreciate that answer. Livestock hauliers are exempt from having to have a haulier's licence, and I am sure the scheme was not designed to exclude them from the support, which is needed. I appreciate the Minister's indication that he will raise the matter with the Minister for Transport and I hope we can get it sorted as quickly as possible. These businesses are under extreme pressure travelling throughout the country and hauling livestock, an essential part of the infrastructure for our agrifood industry. I hope we can get this anomaly removed from the support scheme as quickly as possible.
I will discuss the matter with the Minister. I would imagine the reason the scheme has been constructed for licensed hauliers only relates to the existence of a defined list of them and also because they are regulated. We will need to examine the issue in some greater detail. I understand the point the Deputy makes, whereby people who are involved in the business of transporting livestock are certainly not immune to any extent from rising fuel prices and are carrying the burden of that in the same way as licensed hauliers. I will certainly raise the issue with the Minister and revert to the Deputy directly.
