Dáil Éireann díospóireacht -
Tuesday, 26 Sep 2023

Vol. 1042 No. 5

Reversal of Planned Fuel Price Increases: Motion [Private Members]

Deputy Pearse Doherty

I move:

That Dáil Éireann:

recognises that:

— workers and families continue to struggle with the cost-of-living crisis; and

— the prices of petrol and diesel have risen in the past number of months and are due to rise further, resulting in significantly increased travel costs for workers and families;

notes that:

— from March to August, average petrol and diesel prices increased by 7.6 and 9.9 per cent, respectively;

— on 1st September, the Government increased the price of petrol and diesel by 7 and 5 cent per litre, respectively;

— the Government have legislated to increase the price of petrol and diesel on 11th October, by a further 2 and 2.5 cent per litre, respectively; and

— the Government have legislated to increase the price of petrol and diesel on 31st October, by a further 8 and 6 cent per litre, respectively;

further notes with concern that:

— these combined increases in October will increase the price of petrol and diesel by more than 10 and 8 cent per litre, respectively; and

— the Government’s price increases alone will add hundreds of euros to average annual fuel costs for workers and families; and

calls on the Government to:

— reverse its plans to increase the price of petrol and diesel on 11th October; and

— reverse its plans to increase the price of petrol and diesel on 31st October.

Leanann oibrithe agus teaghlaigh ag streachailt ar fud an Stáit seo mar gheall ar an gcostas maireachtála. An mhí seo chugainn, ardóidh an Rialtas praghas peitril agus díosail tuilleadh le dhá ardú chéanna. Tagann seo sa mhullach ar arduithe a rinneadh ag tús na seachtaine seo nuair a ardaigh sé suas praghas peitril agus díosail arís. Tá Sinn Féin, sa rún seo anocht ag éileamh ar an Rialtas deireadh a chur leis an bplean atá aige le hardú praghsanna agus sos a thabhairt d'oibrithe agus do theaghlaigh.

Workers and families across the State are only too aware of the cost-of-living crisis and that it is far from over. The rate of inflation has eased but prices have not fallen and costs remain far too high for many households. For many, wages have failed to keep up with rising prices and households have tried their best to adjust their spending but many, as we read in today's newspapers, have fallen into real hardship. One in eight cannot even pay their energy bills. People do not expect the Government to shield them completely from every single price increase but nor do they expect the Government to make matters worse by increasing prices. That is exactly what this Fianna Fáil and Fine Gael Government has done. That is what we are debating this evening. It is a Government that plans to hike fuel prices twice next month. It is simply a reality that in many areas, many workers and families, whether travelling to their places of work, for a hospital appointment, to leave their children to school or to visit a loved one, have no option other than to use a car.

According to the AA, the price of petrol has increased by 16 cent compared with August 2021 and diesel by 21 cent. In the past number of weeks, the cost of fuel has steadily increased, not just because of the market but because the Government increased it on 1 September. Households see this as the pumps and feel it in their pockets. On 1 September, the Government, in its wisdom, decided to increase the price of petrol at the pumps by 7 cent per litre and hiked up the price of diesel by another 5 cent per litre. Prices are now creeping up to the €2 per litre mark. This price creep is happening as households continue to grapple with all the rest, such as high energy bills, soaring mortgage costs, unaffordable rents and childcare fees.

Despite these pressures, the Government is determined to make matters worse. Next month, it plans not one but two tax hikes on petrol and diesel, pushing petrol and diesel prices up for workers and families. This Government will push prices higher on 11 October and again on 31 October. On 11 October, the Government plans to put up the price of petrol by 2 cent and the price of diesel by 3 cent. On 31 October, it plans, as a Government, to push up the price of petrol further by another 8 cent per litre and the price of diesel by another 6 cent per litre. It has legislated for all of this; it is already law.

Taken together, the Government's drive to increase fuel prices will add hundreds of euro to the travel costs of households per annum, pushing fuel prices closer towards the €2 per litre mark at the pump. Workers and families will rightly ask themselves why, as the cost of living remains so high, this Government is determined to make matters worse for them, to make the school run more expensive, to take more money out of workers' pockets as they travel to work and to increase the cost to citizens who visit their loved ones.

In March, I warned the Government these tax increases needed to be kept under close review as the risk of further price rises at the pumps remained a real prospect. The Government did not heed that warning. It is time for it to do so. The Government needs to change course, and that is what the motion calls for. The Government needs to understand the financial pressure households are under and scrap its out-of-touch plan to increase petrol and diesel prices not once, but twice next month. The motion calls on the Government to scrap its plan to hike the excise on petrol and diesel on 11 October and again on 31 October. Both planned price hikes must be scrapped.

Workers and families continue to struggle under a cost-of-living crisis and the Government should be supporting households rather than making matters worse. That is the simple thing. If the Government understood where people are at, it would understand that many of them are put to the pin of their collar. Ministers sitting around the Cabinet table have decided to launch two tax increases on petrol and diesel on workers and families in the State. I can tell the Minister of State that what workers do not need is Fianna Fáil and Fine Gael petrol and diesel tax hikes. What they need is a break. I am calling on the Minister of State and all Deputies to support the motion before the House.

Deputy Martin Kenny

The motion is about giving people a chance in the most difficult of circumstances. I am calling on Deputies from all constituencies, particularly those in the north west and on the Border, which, unfortunately, have a particular problem in this regard because of the two jurisdictions being so close to one another, to support the motion. I am calling on the Government to support the motion and recognise this is a situation it cannot stand over. We cannot have people who are under so much pressure looking at a further increase in fuel costs in October. There were people protesting outside the gates of Leinster House today over the cost of childcare. Every day, there is something else. Every day, people feel the pinch all over the place. Interest rates have gone up, as have the prices of rent, fuel and heating oil. The price of everything people are buying is going up and up. This is an opportunity for the Government to have a little bit of solidarity with people, say that, in the circumstances, it recognises it is not appropriate to bring in these increases, and to withdraw them in October. I am asking the Minister of State to ensure the Government does that, steps back and scraps these proposed increases.

Yesterday morning, I and others met IBEC in Donegal, along with many businesses operating in the Border region. One of the big issues in the Border region is that there are two jurisdictions right beside one another. Filling stations along the Border are aware the price of fuel in the North is at parity with, or a little below, the price of fuel in the South and they are afraid that if the cost of fuel continues to rise in the South, more people will cross the Border. That would close those businesses. We must recognise the Government has a responsibility to ensure such businesses remain open and the price of fuel is at a level where people can manage to do their ordinary day's work and bring their children to school. There is also the issue of the delivery of goods throughout the country, so much of which is done in white vans to shops and other places. All these fuel increases have an impact on that and, in turn, the cost of living.

We need action from the Government. We need to see action that will make a difference. In October, it has the opportunity to scrap this price increase. We are not saying it needs to scrap all of them. If the price of oil on the international market comes down, that should be considered as things change. At the moment, however, things have moved in the opposite direction and the price of fuel has gone up. If the Government brings in these price increases, fuel prices will probably go over €2 per litre. People simply cannot afford such prices.

The Government needs to recognise that and cut its cloth to measure to ensure it can deliver something for ordinary people who are getting up in the morning, working hard and trying to manage. Many of them do not have options. In many parts of the country, there is no public transport. There is no other way of doing it. We do not have rail or Luas services or any other public transport to bring us to work. People have to get into their car and drive. For many people, the continued increase in fuel costs is having a detrimental effect. Every time they go to the pump they see an increase in the cost of fuel. They may have normally put in €30 a year ago but now they have to put in €50 to get the same distance. That is the reality for people.

The motion is clear. The Government should not bring in the increases in October. It should have a little solidarity with ordinary people who are doing their best but suffering badly as a result of the continued cost-of-living crisis. I hope the Minister of State and the Government will see sense and recognise this is not the time to increase fuel prices.

Deputy Pádraig Mac Lochlainn

I wish to reaffirm the points made by Deputies Doherty and Kenny. As the Minister of State is aware, I am from the same region as them. He will know the significant public transport deficits in that region. The reality is that, sadly, public transport is not an option for most people who are working, studying or trying to run a business in our county. They need to have a car. The electric vehicle infrastructure is not there, so that is not a possibility. The carbon tax, which is another issue, is supposed to punish people for not taking better alternatives but, in places like the area from which Deputies Doherty and Kenny and I come, there are no alternatives.

The proposed increases will not occur in isolation. They will be added on top of increases in the cost of energy, electricity, food. Everywhere the people we represent turn, they are getting squeezed. Many people are really struggling and making tough decisions in their lives. Those families are filled with dread at the thought of these increases. They see the price at the pumps increasing every week, back up toward the dreaded €2 level. We are appealing to the Government to listen to us, particularly in the context of the parts of the country from which I and my colleagues come - rural areas near the Border where people have to get by. The difference the increases would make is significant. People tell me they hear reports about surplus, full employment and the country never having had it so good, but that is not what they see in their lives. It is not their lived experience. What they see is that they just cannot make the numbers add up every week and all these components compound each other. In the context of this issue, the Government has it in its power not to make their situation even worse.

We are appealing to the Government to support the motion and the call we are making and to try to do what it can. Obviously, there are wider issues but we are focusing on this one tonight. We are asking the Government to hear what Sinn Féin is saying and do what is right.

Deputy Maurice Quinlivan

The cost of living in the State has spiralled out of control. Despite being on a wage, too many workers and families are struggling to get by, bill by bill, week to week. With the nearly continuous news of further price rises, it is all but impossible for the average worker to have any disposable income. Those who are renting face the ominous threat of eviction. If they are to seek new rented accommodation in Limerick, the cost of renting will be beyond the reach of most workers. For a family renting a three-bedroom house in Limerick, the average cost is €1,699. For a single person renting a one-bedroom apartment, it stands at €1,177 per month. I am sure the Minister of State will agree those are colossal prices to pay for rented accommodation. Those who are fortunate enough to own their own home have seen their mortgage interest rates rise, in some cases ten times this year, and now they face these additional fuel costs.

There are some fantastic large-scale employers in Limerick. I am thinking of the likes of Three Ireland, Johnson and Johnson, Edwards Lifesciences and Regeneron among many others. In the main, these companies are based in industrial estates located near the suburbs of the city. Although there are bus services, they are infrequent and unreliable. The morning and evening traffic in the likes of Castletroy and Raheen is testament to the growing number of commuters travelling to these locations for work. Commuters, many of whom are renters paying more than €1,100 per month on rent, cannot afford new costs. These workers and families have seen the price of petrol and diesel increase in recent months and are told this is a necessary cost and due to rise further. Between March and August, the costs of petrol and diesel rose by 7.6% and 9.9%, respectively. There were increases of 7 cent and 5 cent on the cost of petrol and diesel at the start of this month, with a further increase of 2 cent on petrol and 2.5 cent on diesel scheduled for 11 October and yet another increase, of 8 cent on petrol and 6 cent on diesel, scheduled for 31 October. This has placed an unnecessary further burden on workers and families. It has placed an unnecessary burden on those who have no option but to use a car to travel to work, school or college.

The Government must realise that pursuing these increases at this time of an increasing cost of living chips away further at the income available to families. It chips away at their disposable income. The fuel price increases on their own will add hundreds of euro to the annual fuel costs of workers and families, yet the Government perseveres with the increases regardless.

People will be faced with the prospect of paying nearly €2 per litre when they fill up their vehicles. I urge the Minister of State to reconsider and to stop the increases scheduled for 11 October and 31 October. I urge him to stand up for the average working family, as we are trying to do tonight.

Deputy Patricia Ryan

I am here to speak to Sinn Féin's vital motion on the reversal of planned fuel price increases. I thank Deputy Doherty and his team for bringing it to the floor of the Dáil. The rise in petrol and diesel prices is adding to the stress on families during the cost-of-living crisis. Workers are struggling to afford the fuel to get them to work, not to mention students and their families with long commutes to and from schools and universities who can barely make ends meet. Having already added 7 cent and 5 cent per litre to the price of petrol and diesel on 1 September, this Government plans to add insult to injury by adding two increases of 8 cent and 6 cent by the end of October. These planned increases bring the average cost of petrol per litre to €2 and that of diesel to around €1.90, heaping more and more misery on families and workers. Let us not forget the haulage firms and service providers that are the backbone of our economy. Their businesses will be in dire straits with these increases. My staff and I are getting calls from local hauliers and businesses who are facing enormous struggles to keep people in employment due to rising fuel costs. As the Minister of State is aware, this has a knock-on effect on our local economy. Increased fuel costs are adding to the ever-increasing overheads that many small and local businesses already face. In my own constituency of County Kildare, people do not have the option of public transport. All previous speakers have told the Minister of State this. They have to rely on cars to get around. That is the reality of rural Ireland.

Sinn Féin has called repeatedly for Government action on fuel costs to aid struggling families and businesses. I have news for the Minister of State. Fuel price increases will make things worse, not better. He knows that and I know that. The Government must reverse its plans to increase petrol and diesel prices on 11 October and 31 October, and stop adding to an already-crippling cost-of-living crisis. It is the worst cost-of-living crisis we have ever had and the Minister of State is sitting there thinking it is okay to add more to it. I urge the Minister of State and the Government to adopt the Sinn Féin motion and change tactic on this issue.

Deputy Johnny Guirke

We need to see action from this Government as soon as possible on the cost of fuel and the cost of living. Sinn Féin has constantly raised this issue here in the Dáil. All this Government is doing is driving people into poverty. Does the Government actually realise what people are going through during this cost-of-living crisis? The rising cost of fuel is not an isolated issue; it is part of a broader cost-of-living crisis that is sweeping across Ireland. The cost of rent, housing, food, utilities and other essentials is continually on the rise. The cumulative effect of these increases is putting immense pressure on families across the country. I will talk about one of my constituents who contacted me a couple of weeks ago because she was refused the school uniform allowance for her child after being means-tested. She is on invalidity pension and her husband's wage puts them over the threshold. They are living hand-to-mouth, yet the cost of rent was not taken into account, along with electricity costs, food costs and fuel costs to keep their car on the road. They could not figure out where to get the money to purchase the child's uniform. Around the time of being means-tested, their account had 87 cents in it until the husband's next pay day. The husband is paid monthly and after all their bills are paid, the standard amount they are left with in their account is 87 cents. As we head into winter, people are going to have to start putting oil in their tanks again to heat their homes. That is another bill for people already under huge financial pressure. Older people are afraid to turn on the heat because of the cost. They are going around the house with a coat and a scarf on, or going to bed in the middle of the day to keep warm. It is definitely not the way to be treating our older people. At the same time, this Government plans to increase the price of petrol and diesel twice in October. Ordinary workers and families cannot afford these hikes in the middle of a cost-of-living crisis. These prices increases, if they go ahead, will add hundreds of euro to average annual fuel costs. That is why the Government must reverse the planned increases. Does the Minister of State really know what is going on in the world and how people are struggling?

Minister of State at the Department of Transport (Deputy Jack Chambers)

I move amendment No. 1:

To delete all the words after "Dáil Éireann" and substitute the following:

"notes that:

— the volatility in fuel prices being experienced now, and over the last 18 months, is due to a variety of geopolitical issues including the Ukraine war, none of which the Government has any control or influence over;

— crude oil is an internationally traded commodity, and its price is determined by changing global demand and supply factors, and has had a divergence of $100 (US) over the period from July 2020 to May 2023;

— 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 18 months;

— in particular, the provision of temporary reductions in the rate of non-carbon excise applying to diesel, petrol and Marked Gas Oil (MGO) amounting to 21, 16 and 5.4 cent per litre for petrol, diesel and MGO respectively, which in last year's Budget were extended to end February 2023;

— the further extension of these measures to 31st May, 2023, and the phased restoration of these excise rate reductions in three steps to 31st October, 2023;

— to date, the reductions are estimated to have cost over €1 billion, in terms of revenue foregone between 10th March, 2022, and 31st July, 2023; and

— the excise reductions to date are designed to strike the balance between passing a significant benefit to consumers, while managing the tax base and respecting the minimum rates allowable under the Energy Tax Directive;

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;

— €3 billion of cost-of-living measures were introduced prior to Budget 2023;

— Budget 2023 was a 'cost-of-living' Budget, focussed on addressing inflationary pressures, and the budget package amounted to €6.9 billion, which included over €3 billion in direct measures to address the cost-of-living challenges, such as adjustments to income tax bands and increases in social welfare payments;

— this was complemented by a set of one-off cost-of-living supports introduced in the final quarter of last year, worth over €4 billion; and

— the Government has continued to act to respond to the rising cost of living, and in February of this year a further package of supports worth €1.3 billion was introduced;

recognises that:

— carbon tax is a key pillar underpinning the Government's Climate Action Plan to halve emissions by 2030, and reach net zero no later than 2050;

— the Programme for Government: Our Shared Future committed to increasing the 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;

— previous analysis, undertaken using SWITCH: Simulating Welfare, Income Tax, Childcare and Health Policies, the Economic and Social Research Institute 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 this will be achieved through the progressive decarbonisation of Irish 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 Budget 2024 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.".

I welcome the opportunity to discuss the Sinn Féin Private Members' motion on the reversal of scheduled increases in carbon and non-carbon fuel taxation, and in particular its view that the 11 October carbon tax increase and the 31 October 2023 fuel excise restoration should be cancelled. I will speak to the Government's countermotion and, in particular, set out that the budgetary context is the appropriate place for discussions around this to be addressed.

The final retail price of fuel is determined by a number of factors, including the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts as well as individual retail pricing policies. In this regard, the volatility in the market which we have faced in recent times is best illustrated in the price of crude oil, which has had a divergence in price of $IOO over the period July 2020 to May 2023. The Government is very aware of the severity of the financial impact that fuel price increases have on Irish households, and I will shortly outline how we have responded. It is clear however, that many of the factors influencing the current price of fuels are out of the Government's direct control, in particular the market volatility. This is demonstrated by the fact that while the price of crude oil fell back for a period earlier this year, market dynamics have once again began to drive up its price again in recent months.

Let me now turn to the Government's response to the increase in energy prices over the past 18 months. Notwithstanding the restrictions of the energy tax directive and the need to manage the public finances, the Government has acted decisively on the energy crisis. We have recognised the impacts of fuel price increases. While these trends are driven primarily by global factors, the Government made the decision to alleviate some of these impacts through the domestic taxation of fuel. In particular, in March 2022 the Government provided for temporary reductions in the rate of non-carbon excise applying to diesel, petrol and marked gas oil, MGO. Following extensions and amendments, cumulatively these reductions amounted to 21 cents, 16 cents and 5.4 cents per litre for petrol, diesel and MGO, respectively. Following the Government decision of 21 February 2023, a phased restoration of these excise rate reductions was legislated for, which provided for reintroduction of full rates as follows: a VAT-inclusive increase of 6 cent on petrol, 5 cent on diesel and 1 cent on MGO on 1 June; a VAT-inclusive increase of 7 cent on petrol, 5 cent on diesel and 1 cent on MGO on 1 Sept; and a VAT-inclusive increase of 8 cent on petrol, 6 cent on diesel and 3.4 cent on MGO on 31 Oct . The excise reductions to date are designed to strike the balance between passing a significant benefit to consumers while managing the tax base and respecting the minimum rates allowable under the energy tax directive. They are estimated to have cost over €1 billion in terms of revenue foregone to the Exchequer between 10 March 2022 and 31 July 2023.

In addition to the 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. Prior to budget 2023, €3 billion of cost-of-living measures were introduced, with budget 2023 reflecting a cost-of-living budget focused on addressing inflationary pressures. I reject some of the remarks that have been made by others, as if this Government has stood idly by and done nothing for households. Can they not recognise the significant intervention that was made, some of which was proposed by Sinn Féin in the context of the overall cost-of-living crisis? There has not been an ounce of credit or acknowledgement of that in any of the contributions made thus far. The budget 2023 package amounted to €6.9 billion, which included more than €3 billion in direct measures to address the cost-of-living challenges, such as adjustments to income tax bands and increases in social welfare payments. This was complemented by a set of one-off cost-of-living supports introduced in the final quarter of last year worth more than €4 billion.

The Government recognises that there continues to be upward pressure in fuel prices due to a variety of geopolitical issues. However, it does not believe it is appropriate to respond to this situation simply by accepting this motion. Instead, it is of the view that budget 2024 is the appropriate place for it to strategically set out its taxation and expenditure decisions in response to the cost-of-living crisis currently being faced by many households.

Simply accepting Dáil motions on any given week is not the way to set out the wider fiscal parameters, wider certainly for households and the supports we will be giving in responding to the cost-of-living crisis that many households face. These will be set out on budget day.

Deputies will be aware that the 2020 programme for Government committed to increasing the amount charged per tonne of carbon dioxide emissions from fuels to €100 by 2030. The Government followed through on this commitment by introducing legislation in the Finance Act 2020 to provide for a ten-year trajectory for carbon tax increases to reach €100 per tonne of carbon dioxide by 2030. This measure is a key pillar underpinning the Government's climate action plan to halve emissions by 2030 and reach net zero no later than 2050.

A further key component of the Government's carbon taxation policy is the hypothecation of revenues raised from the rate increases to fund important just transition measures. It is important to note that 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 but also, in the long term, will mitigate fuel price impacts by reducing our reliance on fossil fuels. In the long run, the best way to protect Ireland from the impact of international fossil fuel prices is to reduce our dependency on them. We will achieve this through the progressive decarbonisation of Irish society and the steps that will be taken to meet the Government's commitment to reaching net zero greenhouse gas emissions by 2050.

For context, it must also be noted that changes to carbon tax rates are having a relatively small impact on current energy prices. The 2023 carbon tax increase, which came into effect in October last year for auto fuels, added approximately 2 cent per litre in tax to petrol and diesel. The increase in rates for home heating fuels such as kerosene, gas, and solid fuel was delayed until 1 May 2023 to mitigate impacts during the winter heating season. The May 2023 increase added approximately €21.56 to a 1,000 l fill of kerosene and 20 cent – VAT inclusive – to a 12.5 kg bale of briquettes. It is clear, therefore, that carbon tax is not the cause of current energy price inflation.

The Government is very conscious of the negative impact that the sustained rise in consumer prices is having on society. Everybody in this House is aware that the reason for this significant inflationary pattern is matters completely outside our control and that are global in nature. The Government is satisfied that it is responding in a proactive manner and in line with policies taken in other jurisdictions, and within the constraints of the EU energy and VAT directives.

The Government believes its comprehensive response to the energy crisis and other areas will put us in a good position to recover when, hopefully, the current price pressures on fuel begin to ease. The Government's countermotion is on the reversal of the planned increases. We believe it is best to address all these matters, which will receive appropriate attention, and set out the strategic fiscal parameters of the State in the context of budget 2024 as part of overall taxation and expenditure decisions in response to the cost-of-living pressures faced by society as a whole. We have been very clear in the summer economic statement that there will be a cost-of-living package for families and significant decisions on expenditure and tax to help households and support them through the winter period. That package is the appropriate way to intervene and provide support for families.

I have outlined why the Government believes the carbon tax is important in helping to reduce our dependence on fossil fuels. I am reminded of the Sinn Féin manifesto in which it outlined its opposition to carbon tax but also its ability to spend revenue from tax increases that were occurring. I would encourage the party to provide a bit of clarity on that. Consequent to what I have outlined about the carbon tax, we cannot support a proposal to reverse the increase of 11 October, which forms part of the long-term policy trajectory of increases and the policy approach agreed by the Government. If the Government were to do this, it would undermine the rationale of this important measure to mitigate climate change.

I have moved a countermotion on the matters raised. The appropriate time to provide the important supports and cost-of-living measures that families, society and businesses will expect in budget 2024 is budget day. We appreciate Sinn Féin's input but the appropriate time is budget day, not during the taking of a Dáil motion.

Deputy Dessie Ellis

The Government has announced planned increases to fuel prices that will only exacerbate the problems of the already burdened ordinary workers and families across the country. Petrol and diesel prices have been subject to a steady rise since May, but it is the recently announced sharp increases that will have a significant impact on the pockets of the public. The planned increases come at an untimely moment, when individuals are still grappling with economic uncertainties caused by the global pandemic.

Moreover, many people rely heavily on personal vehicles for commuting, making them highly vulnerable to rising fuel costs. Forcing individuals to bear this additional financial strain is not just unfair but also causes unnecessary stress given the current cost-of-living crisis. The proposed increases to the cost of petrol, of 10 cent per litre, and to the cost of diesel, of 8 cent per litre, will push the costs of these two fuels closer to €2 per litre by October's end. Such a steep hike will undoubtedly affect individuals' budgets significantly, particularly those who rely on their vehicles for work or essential travel. The overall cost of living will rise as the effects of transportation costs trickle down into other sectors, such as food production, small business and even public services like healthcare. Higher fuel prices can also prove detrimental to various sectors, such as transportation, agriculture and small business.

Transportation costs will escalate substantially, increasing expenses throughout supply chains. Farmers who rely heavily on machinery powered by diesel engines will face higher operational costs, which may result in decreased agricultural productivity or an increase in produce prices for consumers. Small businesses that depend on regular deliveries or transport services may struggle to absorb elevated transportation expenses without passing them on to customers. These planned fuel price increases are not only untimely but also a burden on ordinary workers and families, who are already facing economic challenges. The consequences of these hikes range from increased living costs to negative impacts on various sectors of the economy and they should be scrapped.

Deputy Seán Crowe

The Government and Sinn Féin clearly have different perspectives on the challenges people face. Many people say to us they are facing a financial cliff and getting nearer and nearer to it. The Government seems to be steaming on ahead with its policies, clearly powered by hot air. Families are suffering.

The key element of what is proposed is that there will be two increases in October. The Government is asking us to wait for the budget process. We are already in the budget process. Every day, we are contacted by families, individuals, advocacy groups and others about the crisis they are facing. The budget is being written as we speak. What we are saying is that families cannot handle two increases in the one month.

Petrol and diesel prices have already been increasing steadily this year. Those of us who travel know that, but the difficulty to which we are referring is that while people who live in Dublin might have a transport alternative, although not always, others do not. In many cases, you need the transport to get to your job. What we are saying is that what is happening must stop. The Government has to wake up to what families are facing. They are facing a crisis and we need to do more. We are asking the Government to do the common-sense thing, namely, stop this increase. Is that too much to ask? I do not believe it is. Anyone listening at home will have heard the Government saying there is plenty of money. Is its belief that people will not get into their cars if the increase is high enough? There is no one sitting out on their driveway revving up their car for a couple of hours per day; they are using the petrol or diesel to get from A to B. People are suffering and worrying, going to bed at night wondering how they will get the money to get to their jobs.

It is not only workers, but students, people bringing children to childcare and so on. Do we have to do an ABC for the Minister? There is a problem. It can be solved. It is within the Government's power to solve and Sinn Féin is appealing in this motion to the Minister for Finance to do so by stopping the increases. I ask the Minister of State to reflect on that.

Deputy Martin Browne

In order that the Minister of State will not be too upset by what he is listening to from this side of the House, I will give the Government credit for one thing. It gave payments to families. However, what it gave with one hand, it took back twofold with the other. The three parties in this malfunctioning Government have lost touch with the pressures people are under now. Things are bad enough as inflation has increased to an extent that for many, even those who get up early as the Government says, work no longer pays the bills.

Childcare providers who work for fees that were frozen at last year's rates in order to get core funding were outside the gates of Leinster House today. Many of those businesses are now under undue pressure because of the impact of inflation since last year and many will go out of business. Community workers in the areas of health and social care, who are the backbone of Tipperary, are due to go on strike next month because they have been left behind by the Government's failure to address the disparity in pay they experience. They are calling for the Government to take action on their behalf, not to make matters worse for them by hiking the cost of motor fuel any further.

What about the many mortgage holders who are paying vastly more each month alongside the increased cost of virtually everything? The Government thinks it is all right to put more pressure on them. The cost of food and energy is up, the number of electricity customers falling into arrears is up, yet the Government thinks these people can afford to pay even more to put fuel in their cars to drive to work, put in their day's work, drive home and, at the end of the week or month, see a vastly devalued pay cheque go into the account to pay even more at the pumps.

By the end of October, the Government will have increased the price of petrol by 10 cent per litre and the price of diesel by more than 8 cent per litre, pushing both closer to €2 per litre. As we face the onset of winter, people will need to put more money towards heating their homes, but the truth is that the Government is making it more and more difficult. Let me warn the Minister of State that it will have an effect. I remind him that whatever one-off payments the Government may include in the budget will be offset for many by the hikes it intends to impose on people throughout the month of October. The longer the Government is in office, the worse things are getting for those struggling with the cost of living. There is only one thing for it. It is time for change.

Deputy Johnny Mythen

I commend Deputy Doherty's motion to all Deputies across the House, especially to my fellow Deputies from County Wexford. The Minister for Finance urgently needs to reverse the planned decision to raise petrol and diesel prices in October 2023. These purposeful price increases will add to the already substantial living costs of ordinary families. Wages have stagnated, food inflation is running at 6.6% and rising, rents in my county have increased by 19.5% year on year and fuel inflation is running at 16.4% even before the Government's two planned increases in October. It is plain as day that it is getting harder and harder for families and workers to get by. Most are living from week to week. Hiking the cost of fuel will have the immediate effect of increasing prices across the board. Everyone knows these planned increases in cost will be passed on to consumers one way or another, whether it is through transport and delivery costs or otherwise. This will add hundreds of euro to the average family budget and wipe out their disposable income. God help those who live in rural Ireland as these increases will have an unfairly disproportionate effect on them compared with the rest of the population. The fact is, there is no alternative to using a car in rural Ireland to go to work, to school, to the local sports club or on leisure trips. Small farm holdings are faced with huge additional costs.

The Government says it acknowledges there is a cost-of-living crisis. However, one of its solutions is to increase fuel prices. How can this be? It is a total contradiction. The Government must realise that people are at the edge of managing their incomes and salaries. People such as pensioners, care workers and apprentices are on fixed incomes and, what is more, they cannot keep absorbing the current cost-of-living crisis. Small family businesses are closing every day due to our high energy costs. However, there is still time to do the right thing. The Minister for Finance can cancel his plans to increase the price of petrol and diesel on 11 October and on 31 October, and if the Government truly wants to help with the cost-of-living crisis, it will cancel this unnecessary burden. Take it off the shoulders of ordinary workers, the men and women of this country, and give families a break.

An Ceann Comhairle

Deputy Ó Murchú has 40 seconds for his words of wisdom.

Deputy Ruairí Ó Murchú

That is all I will need.

Deputy Ged Nash

No better Deputy.

Deputy Ruairí Ó Murchú

It has already been said. What the Government is doing with these increases in October is heaping pain on pain. We can talk about childcare workers, people under pressure who do not have any information about plans to deal with mortgages and rents, the cost of shopping, or the Commission for Regulation of Utilities, CRU, that does not even want the powers to be able to deal with the madness we are dealing with as regards the energy providers.

An Ceann Comhairle

Thank you, Deputy.

Deputy Ruairí Ó Murchú

The Government has an opportunity to at least mitigate some of the pain. We can at least talk about fossil fuel replacement-----

An Ceann Comhairle

Thank you, Deputy.

Deputy Ruairí Ó Murchú

-----but at this time we do not even know how the renewable electricity support scheme, RESS, 3 auction will go. The Government needs to get its act together on that. Let us be real.

An Ceann Comhairle

The Deputy is taking advantage of my gentle nature.

Deputy Ruairí Ó Murchú

People are under severe pressure. The Government can help them out now by making sure there are no increases in the cost of petrol and diesel. People do not have a choice. They need to get in their cars and the Government could help to make that slightly cheaper, slightly easier to deal with in this cost-of-living crisis.

Deputy Ged Nash

I thank my constituency colleague for his contribution.

I am pleased to speak on this motion on behalf of the Labour Party. Listening to some commentators in recent days, you might think the cost-of-living crisis is more or less over. Nothing could be further from the truth, especially for those living in a permanent cost-of-living crisis. The rate of inflation might be slowing but it is important to remember that inflation was 7.8% when measured in 2022. The spike in prices, especially of essential goods, was much higher. It might slow to approximately 5% but that means that practically everything we buy costs much more than it did 12 to 18 months ago. We have had 23 straight months during which the annual increase to the consumer price index has been at least 5%.

We know, as does the Minister of State, that inflation hits different sectors of society very differently. People who are well paid and who managed to save money during the Covid-19 pandemic are generally well insulated. However, for those on a fixed or low income, the past 18 months have been catastrophic. The Government's answer for those most impacted by rising costs was below-inflation increases to weekly social welfare rates, a below-inflation increase to the minimum wage when corporate profits were at record levels, and a series of poorly targeted one-off measures, some of which helped to fuel rather than tame inflation. Two weeks from today, the Government looks set to make the same mistakes again: social welfare increases that will be too low to restore the purchasing power of pensioners, carers and people with disabilities and a series of energy credits given regardless of income and assets held, when many thousands of people could do with much more.

On top of this, separate from the budget, two scheduled measures are to be taken in October that will see increases to the prices of petrol and diesel at the pumps. The motion characterises the increases due as arising from the fact that the Government has "legislated to increase the price of petrol and diesel on 11th October, by a further 2 and 2.5 cent per litre, respectively" and "legislated to increase the price of petrol and diesel on 31st October, by a further 8 and 6 cent per litre, respectively". However, the motion is silent as to why. It does not describe what these increases involve. One relates to a planned increase in excise duty at a time of high prices. As the OECD stated that 2023 has seen the first drop in living standards for Irish households since 2013, I fully expect and demand that the planned excise duty hike scheduled for next month be dropped. That is the position the Labour Party proposes and advocates. It is within the control of the Minister for Finance to do this to help hard-pressed motorists who are faced with a plethora of charges they could do without, at least for a six to nine month period, to be kept under review.

I am surprised the reason for the other increase that is to be introduced in October has not been explicitly mentioned in the motion. I think the Minister of State referenced it earlier. It is to do with the long-planned and legislated for increase to carbon tax.

Why did Sinn Féin not say this directly in the motion? That is a valid question. Sinn Féin has directly referenced its opposition to carbon tax before because it plays well on the doors. The failure to mention that this is carbon tax is conspicuous and, quite frankly, suspect. This is serious.

Deputy Pádraig Mac Lochlainn

It is laughable.

Deputy Ged Nash

I detect an effort to hide this and to avoid calling it what it is because the proposers know fine well, as does everybody, that Sinn Féin has a very dubious record on, and a dubious commitment to, climate action and what needs to be done to decarbonise our society. Sinn Féin is opposed to any form of carbon tax and the party should just be honest about that and stop squirming and dancing on the head of a pin. That is it, simply put. Avoidance of the term will not persuade anybody otherwise with regard to Sinn Féin's position on the environment.

Carbon levies and charges are a vital tool in the armoury in the existential fight against climate change. We simply have to reduce our reliance on fossil fuels. We support the principle of progressive taxes on fossil fuels on the basis that the bulk of the revenue generated must go towards supporting those households experiencing energy poverty, retrofitting and those on low incomes who can ill afford to pay more to keep themselves warm. In our view, all of the almost €10 billion the carbon tax will raise for the duration of the current cycle we have legislated for should be hypothecated, in other words, it should all go towards the fight against climate change. It should all go to social protection, retrofitting and decarbonisation schemes. This, in itself, would move the idea of a just transition beyond the slogan that it is for far too many who experience the costs involved in decarbonisation. These are people who are legitimately and validly scared of an insecure future and who struggle to come to terms with the very real shifts we all need to make because they feel they are carrying too much of the cost of the change.

There is no doubt that increases to carbon taxes can be regressive and hurt the least well-off the most. However, they can be progressive when the revenue is targeted at those who need the most help. In the immediate aftermath of last September's budget, the ESRI's independent assessment, which used the simulating welfare, income tax, childcare and health policies, SWITCH, model, concluded that the net impact of the carbon tax measures and those welfare measures that compensated for the increase was progressive. At the time, the analysis also found that the bottom 50% of households would be better off as a result of the social protection measures that were specifically funded by the increases in carbon taxes. As I have said, that was the analysis at the time. Things have moved on since then. However, all of this being said, we have a very great problem with energy poverty in this country. I ask the Minister of State to listen to what Dr. Tricia Kielty of St. Vincent de Paul said today in response to figures in Charlie Weston's story in the Irish Independent. One in eight homes are in arrears with energy companies but let us not be simplistic about things and pretend it is because of carbon tax. It is because of the war in Ukraine, because of the way in which energy companies plan and charge for their products and services and because of the crisis of low pay in this country whereby one fifth of all workers are merely existing on low pay. It is because too few people get the financial supports necessary to meet bill payments and because the roll-out of energy efficiency programmes has been patchy at best. Much more needs to be done in Tuesday week's budget to address all of these multifaceted problems for households.

A bit of honesty on climate and the environment is required from all of us. A bit of honesty is required from everyone with regard to the challenges, the solutions and the supports people genuinely need if a just transition is to move, as I said earlier on, beyond mere sloganeering.

Deputy Róisín Shortall

I welcome the debate on the motion before us tonight. It provides us with a timely opportunity ahead of next month's budget to discuss the measures needed to tackle the cost-of-living crisis. I am very concerned by the signals coming from Government, particularly from the Fine Gael elements of the Government, that more tax cuts are on the way. At a time when we should be investing heavily in public services, it seems this Government is instead set on eroding the tax base. In our view, this would be a mistake, not least after last year's regressive tax cuts.

Most of budget 2023 was intended to play to Fine Gael's base and it should not be repeated in a naked attempt to win votes. It was a poorly targeted budget with, for example, the €600 in electricity credits going to everyone, whether they needed them or not. I made the point myself that it went to everybody in this House. That was not necessary. It also went to people with salaries like those of people in this House and to people with much higher salaries, who certainly did not need that €600. It was public money badly spent. Of course, it should have been targeted at those families who most needed it. The other point about that is that €12.4 million in energy credits went to the owners of holiday homes. By contrast, the working family payment measures in last year's plan amounted to just €4 million. Does this Government honestly believe those who own holiday homes are under more financial strain than low-income families? Does the Minister of State believe that or was his Government just trying to buy votes? The weaknesses in last year's budget soon became obvious once the temporary supports dried up and more and more people struggled to put food on their tables, heat their homes and keep a roof over their heads. Budget 2024 must not repeat those mistakes.

While I accept that many of the drivers of rising inflation are beyond the control of Government, there are still many measures that can and must be taken to ease the burden on struggling households. The increase in excise duty on fuel proposed for the end of October needs to be looked at because it represents a measure the Government could take to address the fact that so many families are struggling just to keep their heads above water. Even before the current rise in inflation, Ireland's underinvestment in public services meant that services that are subsidised or free at point of access in other countries, such as health and social care, transport and childcare, must be paid for, in many cases in full, from people's take-home pay. While a lack of protection for consumers means many pay very high bills for other basic services like utilities, waste, insurance and broadband, there is no doubt that much more could be done to support families. Of course, we are living in the midst of yet another housing emergency, where hundreds of thousands of people and households simply cannot afford an appropriate home. All of this makes life in Ireland extremely unaffordable. That is why there must be a focus on reducing living costs, including the cost of public services, rather than this Government's usual focus on giving people a couple of euro a week through small tax cuts. There is no gain for a person in getting an extra €5 if basic household costs rise by more than that.

We in the Social Democrats believe that budget 2024 must strike a balance between providing relief to hard-pressed households and meeting the long-term challenges we face as a society, such as our under-resourced public services and the climate crisis. In terms of immediate relief, there are a number of measures that could be taken quickly by Government. These include a reversal of increases in excise duty on fuel as called for in this motion. That is a reasonable proposal to make. We must remember that Irish people remain extremely dependent on cars. The reason for this is there are so few alternatives. Dublin is one of the most congested cities in the world and many of our other towns and cities are not a whole lot better. In rural Ireland, the situation is particularly bleak when it comes to public transport. The absence of a robust and reliable public transport system continues to be a significant challenge for people living outside of towns and cities. Again, decades of underinvestment are to blame. Instead of funding and delivering public transport programmes, successive governments incentivised the least environmentally friendly forms of transport, leaving people with few alternatives to the car.

I accept that radically scaling up public transport infrastructure cannot be done overnight but we have been talking about investing in significant transport infrastructure for decades now. A case in point, obviously, is metro north, metro link or whatever you want to call it. We are now on the third iteration of a metro to serve Dublin Airport and all of the neighbourhoods in between the airport and the city centre. I can remember in the 1990s going through the whole public consultation process. All of the documents were produced, the applications for planning, the railway order and all of that. That was in the 1990s. It happened again in the noughties - 2008, as far as I can recall - and we had all the brochures, all the leaflets delivered, all the engagement by the public, residents' groups and so on. Again, there was no progress made on it. Here we are again, the third time around. Now we are being told, at a time when the coffers are bulging with money that we could invest in capital projects, that the best case scenario is 2036 before the metro is up and running. This is shocking. It is outrageous. This is one of a very small number of capital cities in Europe that does not have a metro serving the airport.

Measures to reduce the cost of public transport and commuting could be done very quickly, and there is no excuse for not doing that. Measures such as reduced off-peak fares, a further cut to regular fares and increased funding for LocalLink would encourage people to leave their cars at home where possible. However, for this upcoming budget to have the greatest impact, more measures need to be targeted at hard-pressed workers and vulnerable households. It is time this Government accepted that we have a structural problem around low pay. It needs to take meaningful action on that. We know that around one in five workers is on low pay, essentially living week to week. According to the Parliamentary Budget Office, between 2016 and 2022, the national minimum wage increased by 14.5%, failing to keep pace with the 22% increase in average hourly earnings.

Budget 2024 must begin to bridge this gap and crucially, set a clear pathway towards achieving a living wage over the next three years. This must be a genuine living wage, not this Government's interpretation of what that is. Last year, the Government announced plans for a living wage that would be pegged at 60% of median earnings. While this may be a step in the right direction, it is not true to the concept of a living wage, that is, what it actually costs to achieve a decent standard of living. Median earnings have no bearing on the cost of basic necessities. This Government knows that. It has resiled from its commitment to introducing a living wage within the timeframe of this Government.

Next month's budget should also increase support to the most vulnerable households. We must prioritise a combination of core welfare increases, increases to payments such as the fuel allowance, the secondary payments and the qualified child payment, as well as some one-off cost-of-living measures. Those measures must of course be targeted, and the Government has been advised to do that by all of the agencies working in this area. If this budget is to really improve people's quality of life, then the majority of resources must be shared fairly and investment in public services is the best way of doing that.

Deputy Thomas Pringle

I thank the Ceann Comhairle for the opportunity to speak on this motion regarding fuel increases. I also thank Sinn Féin for bringing forward the motion. I fully support this motion and its calls for the Government to reverse its plans to increase the price of petrol and diesel on 11 October by a further 2 and 2.5 cent and a further 8 and 6 cent per litre on 31 October. These are increases that are going to severely hurt families and that will add significantly to the current cost-of-living crisis. They are coming on top of pre-existing price pressures that are hitting every household across the nation and coming into the winter, anxieties are high, with many households worrying about making ends meet while costs continue to soar.

I have had many constituents tell me that they are worried about keeping their homes warm and their cars running. This is particularly difficult for people in rural communities of Donegal who are disproportionately affected by fuel increases. The county has the highest rate of forced car ownership due to the fact that the public transport system is now only starting to develop, and people need to use their cars as much as possible. Donegal is a rural and isolated county that is constantly left behind in every area of development and, as a result, the county is totally dependent on its road network. I have raised this point many times but I will continue to raise it as long as my constituents are forced to worry about how they are going to keep up with rising energy and fuel prices. Hiking these prices during such a difficult time for so many is wrong and the Government’s amendment to this motion is completely out of touch.

The statement that "the volatility in fuel prices being experienced now, and over the last 18 months, is due to a variety of geopolitical issues including the Ukraine war, none of which the Government has any control or influence over" completely ignores the role that greed and selfishness has played and continues to play in this cost-of-living crisis. Nobody is debating that the climate action plan to halve emissions by 2030 and reach net zero no later than 2050 is extremely important. However, it should not be at the cost of our citizens. I am very proud to have introduced the Fossil Fuel Divestment Act 2018. I understand the best way to move forward is to reduce our dependence on fossil fuels and to prioritise decarbonisation in this country but there has to be a just transition. We have to ensure that people’s livelihoods, homes and well-being are protected in our attempts to combat climate change, protect biodiversity and shift towards sustainability.

People deserve to live a life of dignity. They deserve to have a roof over their head, food on the table and fuel in the car. We have the resources to provide that for every single person who lives in this country, while also ensuring that we meet our climate goals, but it requires ambition and structural change. We cannot expect to achieve this without hitting the big corporations that use Ireland as a place to trade but do not give back fairly to the State. We cannot expect to achieve this while continuing to provide for more data centres, which put significant strain on our resources but contribute very little to our economy. It is unfair that, rather than targeting these companies, the Government continues to put the strain on our citizens, who are just looking to get by and live a life of dignity. This Government is failing those citizens by refusing to address this cost-of-living crisis, and it will sadly cost lives unless we do something about it.

Going into the budget season, I urge the Government to prioritise just transition and to introduce targeted, long-term supports for the most vulnerable in our society, rather than the money back from an energy Bill. I agree with Deputy Shortall in that it will give back to the wealthy and the likes of me. We do not need it and it should be targeted at people who are most vulnerable in this society. The Government can begin doing so by supporting this motion and ensuring that households have one less worry going into this winter.

Deputy Marian Harkin

I thank Sinn Féin for bringing forward this motion to reverse planned fuel increases. The Minister for Finance, Deputy Michael McGrath, knows that the planned fuel increases are driving up the cost of inflation. It is not just car owners and car drivers who will feel the pain. It is everybody because that means the cost of other products will increase.

How much of an increase in the Exchequer tax take are we looking at? I had a quick look at what diesel cost about six to eight months ago. One could actually get if for around €1.50 per litre. The cheapest one can now get it at is around €1.81 and it is €1.87 in many places. We are looking at a further increase of 10 cent by the end of October. That is an increase in the order of over 40 cent per litre. What does the Exchequer get out of that? Would I be wrong in saying that the Exchequer will get maybe an extra 20 cent plus per litre, or even more than that? I would be very interested if the Minister could give us that information because that is a huge haul for Revenue, and the ordinary car owner is footing the bill.

I looked at some of the statistics around car ownership in Sligo and Leitrim. The most recent statistics available suggested there are approximately 30,000 cars in Sligo and approximately 15,000 in Leitrim. The average driven per car per year in Sligo is approximately 17,500 km, which is similar to Donegal. In Leitrim and Roscommon, the average driven per car per year is more than 19,000 km. The State average is more than 16,000 km. We see clearly from those figures that car owners in rural areas travel significantly longer distances whether to school, work, childcare or to access services. They are hit disproportionately. We cannot say this is an unintended consequence because the Minister is well aware of those figures.

While the impact on counties such as Sligo, Leitrim, Donegal, Roscommon and other rural counties is far greater than in the largely urban areas, the hit along the Border is much greater still. I have a received a number of emails in that regard and would like to read a little from an email I received less than a week ago. My correspondent owns a petrol station on the Border. He stated that, as he wrote, the average price of diesel was €178.05 per litre and unleaded was €174.70 per litre. That was the cost in Northern Ireland according to the Consumer Council. The emailer stated that, as of the day he wrote, the cost in his petrol station was €182.90 per litre for both diesel and unleaded, meaning a margin of a measly 2.5 cent. That is not sustainable. I received this email about a week ago. We are now looking at the guts of a 10 cent increase when prices were already four to five cent dearer. The man who sent me the email went on to state that any further rises to the carbon duty or fuel duty would close the majority of Border fuel stations and lead to further retail tourism in Northern Ireland. He said his sales had already dropped by 25% in volume in recent weeks. That, he said, was not the result of lower consumption but the result of consumers heading to the North to buy fuel. He stated he understands that duty rises are to encourage people to switch to greener options but he expects us to see further deprivation in Border communities. He called on the Government to completely remove the planned rises in fuel duty and the planned annual rise in carbon duty to give his business and those of others like him a chance. He said that at present, he employs approximately 25 people and that those jobs are at risk in an area that has one of the highest rates of unemployment in the country. He said that fuel has for a while been the last remaining retail product that is cheaper in the Republic than in Northern Ireland but that rising fuel duties and prices in the Republic will encourage thousands to head north to the likes of Newry, Enniskillen and Derry on a weekly basis to get their groceries, alcohol and now fuel.

It is not just the rural counties that are being disproportionately hit. These increases will be the death knell for many petrol stations along the Border. It is a bigger and wider issue. People will travel north for their groceries and alcohol. It will almost be worth their while travelling north for fuel alone. People will not understand that unless they live in a Border area and see the circumstances. As I said before, the Minister cannot say these are unintended consequences when he knows this is happening. What is he going to do to ensure the situation does not get worse?

Deputy Violet-Anne Wynne

In the past three weeks alone, we have had one significant increase in petrol and diesel prices and are now looking down the double barrels of not one but two more increases in a few short weeks. That may fly in some parts of the country but I find it hard to believe voters in the Minister's constituency would be happy about it. I assure him the owners of the 36,000 cars and 4,300 vans travelling to work and school every day in my constituency of Clare are appalled at this measure, which I can only describe as out of touch, and at the anti-rural decision-making of a Government that seems to be punching down.

As the Minister knows, the CSO reported last year that the rate of consistent poverty in the country was in or around 13.1% of the population. In Clare, that is approximately 17,000 of my constituents. Hard-working rural people are absolutely fed up trying to put food on their tables and clothes on their backs while keeping a roof over their children's heads. They feel they are being repeatedly punched down by this city slicker Government. People are at breaking point. We know these increases will undoubtedly cause an increase in applications for the additional needs payments, which will then cause a broken record in respect of those who were rejected and those who are on waiting lists. I implore the Minister on behalf of the people of Clare to withdraw the Government's grandstanding amendment and support this motion. This is about more than playing politics and the stakes are now far too high.

Minister for Finance (Deputy Michael McGrath)

I thank Deputy Doherty and his colleagues for putting down this motion and for affording me an opportunity to further respond on behalf of the Government. I know the Minister of State, Deputy Chambers, spoke earlier. I will set out our position on this issue. I believe that budget day is the appropriate time for the Government to set out its overall response to the cost-of-living pressures we know are very real for many households all over the country. The reason we are debating the issue is because the Government reduced excise in March last year. Two of the three phases of restoration are now complete. The legislation being spoken about this evening was broadly supported across the House. A stand-up vote was called by our colleagues in the Rural Independent Group. The legislation providing for the restoration met with broad support across the Oireachtas. That point must be made.

The date for the final restoration, 31 October, was chosen deliberately because of the window we have in the budget to take stock. That will be an opportunity for us to take stock of where we stand in relation to inflation, energy prices and grocery prices, wage growth across the economy and the state of the labour market. We can take account of all those issues and decide on the appropriate collective response of the Government on budget day. That is what we will do. Of course, we as a Government are monitoring prices at the pumps. We know that prices have increased significantly in recent weeks because of market forces, primarily decisions made by Russia and Saudi Arabia around the supply of oil to the international markets. Brent crude oil has now increased to $93 or $94 per barrel. Of course, refining costs are also a relevant consideration when it comes to the final price that is charged at the pumps. The relative strength of the dollar is also a key factor in that regard.

In the next couple of weeks, I and my officials will be considering the range of issues we must decide in the context of the budget. We have a whole plethora of issues across the taxation code, including income tax, VAT, excise, capital taxes and across the suite of taxation. We will have decisions to make within the parameters of the budget we set out in the summer economic statement. That will be the opportunity for us as a Government. It will also be the opportunity for the Opposition to set out its response to the whole set of issues. As Deputies will be aware, the reduced rate of VAT on household bills, gas and electricity, is also due to end at the end of October. That is another matter that must be considered in the context of the budget. When one is in government, one does not have the luxury of picking off one issue at a point in time.

One has to deal with the totality of the issues one faces, and we will be doing that on budget day. It is my view that, in the round, looking at the decisions we have made to help people with the cost of living, we have been as fair as we could possibly be and we have brought in measures totalling approximately €12 billion since the beginning of last year. This is a combination of targeted measures and universal measures that I believe have made a real difference and have been broadly welcomed. They have undoubtedly helped to mitigate the impacts of inflation, particularly for the lower income cohorts. These are people across society who are on fixed incomes or are on relatively modest levels of employment income. The independent analysis of the response of this Government has been that it has been progressive and that we have provided the most support to those who need it the most. That is a policy which we will be continuing in this forthcoming budget and indeed in next year's budget.

We responded in March of last year to the circumstances we faced at the time by reducing excise and we set out then a phased restoration. In total the reduction was 21 cent on petrol, 16 cent on diesel and 5.4 cent on agricultural diesel. Two of the restorations have taken place and the last one falls due at the end of October. I and my colleagues will be giving the matter very close consideration over the next couple of weeks.

We are seeing considerable volatility on the international markets, which is a point that has to be acknowledged. We have pointed that out in the countermotion we have put forward. Crude oil is an internationally traded commodity. Its price is determined by changing global demand and supply factors and has had a divergence of $100 over the period July 2022 to May 2023.

It is about striking the right balance. That is the key challenge we face in providing an appropriate level of support to households and to businesses in two weeks' time while at the same time ensuring we manage the public finances sustainably into the future.

We have made decisions which have got us to a point where our economy is pretty much at full capacity. We have a record number of people at work. We have many households which can absorb the level of inflation and many others that are under pressure. That is why, insofar as possible, we have to use the levers available to us to target the resources to those who need it the most. I, along with the Minister, Deputy Donohoe, look forward to setting out what we can do. We never claimed as a Government that we could fully offset the impact of inflation. We have experienced inflation in the past 12 to 18 months that we have not experienced as a country since the early 1980s. It has been a remarkable confluence of events and circumstances which resulted in a level of challenge which for many is beyond compare. That is why the range of interventions we have brought about have been unprecedented across taxation and expenditure.

We are now in an environment which is changing. While there is much uncertainty and volatility internationally, we are seeing a weakening of the external environment, particularly among many of our main trading partners who have experienced little or no growth at all this year nor will they next year. That has a direct impact on Ireland, which is a small open trading economy. We have seen our exports fall so far this year, primarily driven by reductions in pharmaceutical exports because last year was an exceptional year, coming from a lower base in 2021. The year 2022 is the base, of course, against which the current year of exports are measured. Also, we have seen a very challenging environment for semiconductors.

I am satisfied as to the overall resilience of the Irish economy. This is borne out by all of the data I see and from my own experience of engaging with businesses from across a whole range of sectors. We are in a position where we can respond. The public finances are in good health. That is not an accident and is because of the decisions we have made over a number of years. That gives us the capacity to respond and to support people who need our assistance the most.

We pay a great deal of lip service to climate change in this House and to the need for decarbonisation to support businesses and households in their journey to reduce carbon emissions. When it comes to the difficult decisions, however, about how we fund that transition, how we raise money to tackle fuel poverty and support households in retrofitting, and how we find the money to support the farming community in its journey to reduce carbon emissions, we can then be found wanting, but not on this side of the House. I look forward to hearing what Deputy McGrath has to say in that regard and at least the Deputy is honest when he says he is against the carbon tax.

Deputy Mattie McGrath

Yes.

Deputy Michael McGrath

That is not the position which others in opposition take. They say they support it in principle but they are always against the next increase. This means, when you add it all up, that in effect those persons are against the carbon tax. Much lip service is being paid on that issue. The Government has to respond to the total picture and that is what we will do on budget day. We are engaged in very detailed analysis at this time to come up with an appropriate set of measures which help people, especially those who need help the most. The specific issue of the excise duty, which is the subject of this motion will be considered in that context in the next couple of weeks.

Deputy Mattie McGrath

Can I make brief point of clarification please, a Cheann Comhairle, le do thoil?

An Ceann Comhairle

Yes, you can.

Deputy Mattie McGrath

Briefly, that was a state of the nation address but I will be brief. The Minister, Deputy McGrath, referred to us in the Rural Independent Group when calling a stand-up vote. There was an amendment to these increases back in early July. We pushed it to a vote and we did stand and there was nobody inside of the House to stand with us. There were five of us. Perhaps an Teachta Doherty will explain why his party is here now playing these games. The last thing the public out there want is shenanigans, brinksmanship and marksmanship and games being played. They want relief and not these kinds of shenanigans.

An Ceann Comhairle

I thank the Deputy and he has made his point.

Deputy Mattie McGrath

I told the Ceann Comhairle that I would only be a minute and I appreciate that, but the Deputy's party did not stand up to vote to stop this increase where it should have been stopped, and not now where they are trying to close the door when it is gone.

Deputy Pearse Doherty

You did not even turn up.

Deputy Mattie McGrath

I have spoken out about decarbonisation. Why did you not vote with us then and now you want to get our backing for it? The public can see what is going on.

An Ceann Comhairle

I ask now for the Deputies from Sinn Féin to respond and I call Deputy Andrews, who is sharing with Deputies Carthy and Doherty.

Deputy Chris Andrews

I thank the Ceann Comhairle and my colleagues for bringing forward this timely motion. In recent weeks we have watched fuel and prices steadily increase. Petrol and diesel prices have increased by 7.6% and 9% respectively. This Government seems hell-bent on ensuring fuel prices hit the €2 mark as soon as possible. This Government is planning two fuel price hikes in October and that these price hikes are not happening in isolation. They are happening in the middle of the cost-of-living crisis and they are suffocating workers. These price hikes need to be stopped. It is ordinary workers and pensioners and vulnerable members of our society who will feel the brunt of these price hikes most.

Some commentators say these price hikes are needed to push more people to buy electrical vehicles and to push people to cycle in active transport. The reality is that for the average person in Ireland an electric car is beyond their means. In the past year, the price of an electric car has jumped by 13% and, as a result, an electric car in Ireland now costs an average of €65,000. That is an enormous sum of money for ordinary people in the middle of a cost-of-living crisis.

Last week I spoke to a young mother who works as a healthcare worker in a hospital here in Dublin. She told me why she does not use public transport despite having the choice. She said that to drive to hospital takes her 20 minutes versus over an hour on the bus. Getting public transport every day for her would add more than seven hours a week to her commute. We need to see this Government delivering efficient public transport so that we can ease the congestion we are seeing across the city and start improving the quality of life for those living in the city.

Many communities across my constituency, like Pearse Street and Kevin Street, experience constant traffic congestion throughout the day. Many times of the day these streets are like car parks simply because the Government and Dublin City Council have failed to put in effective public transport. The city council slowing down the lights will simply not work.

Deputy Matt Carthy

I commend Deputy Doherty on bringing this motion to the House. If I was in the humour, I might commend the Minister on managing to spend ten minutes while avoiding the very context of the motion in his own remarks. I recall that not so long ago, on 1 September, when people realised that their petrol costs had increased by 7 cent per litre and their diesel costs by 5 cent per litre, there was a genuine sense of frustration among many people I spoke to. Then they realised that this was nothing to do with Ukraine; it was not as a result of a blockage of the Suez Canal and it was not as a result of any of the other litany of excuses-----

Deputy Michael McGrath

Sinn Féin supported it.

Deputy Matt Carthy

-----that are put forward, but was a decision by Government. As one of my constituents said, it was the equivalent of the Government putting a tax on a loaf of bread. This is the thing that some people on the other side of the House do not recognise. For people in my constituency driving a car is not a luxury. It is essential for them to be able to get to work, to drive their kids to school because they cannot access school transport in some instances or even to drop their kids at a football game.

What the Government is doing in increasing the cost of doing those things at a time when people are already struggling with energy costs, which have just gone beyond what was once even imaginable, with insurance costs, housing costs, whether it be rents or mortgage costs, and the increasing cost of groceries, is making people's lives more difficult. The suggestion made again that this is something to do with environmentalism or climate action is laughable. What is the Minister's proposal right now? His current proposal is that on 11 October he will increase petrol by 2 cent and diesel by 2.5 cent. On 31 October, he proposes to increase petrol again by a further 8 cent and he will increase diesel again by a further 6 cent. All of these increases are happening at a time when fuel prices are increasing on their own anyway.

That is the net result of the Government's current trajectory. It will push families to the brink. It will push many of them into a personal debt crisis, even those who a number of years ago would have considered themselves to be well-off. It will push businesses in my constituency out of business. meaning there will be a cost to the economy in many communities as a result of this measure unless the Government takes action.

The Minister mentioned the measures he took in March and mentioned some of the other measures the Government has taken. In every single one of those instances, it took Deputy Doherty or another Sinn Féin Deputy to bring a motion before this House to embarrass the Government into taking action. I hope this motion has the same effect on it. I hope we will see real, meaningful reductions in the cost of people travelling to their place of work. That is what people deserve and what they are demanding in the budget.

Deputy Pearse Doherty

I thank all the speakers to spoke in favour of the motion tonight because it is a very important one. As many of them mentioned, we are in the middle of a cost-of-living crisis. I will not name all the parties. It was disappointing we did not hear from any of the Rural Independent Group Deputies who were not here to contribute to the debate but I am sure they will have plenty talk about on those issues later on.

Deputy Mattie McGrath

A Cheann Comhairle-----

Deputy Pearse Doherty

The key issue here-----

Deputy Mattie McGrath

May I make a point of clarification?

An Ceann Comhairle

Yes, you may.

Deputy Mattie McGrath

I came in here 22 minutes before I was to speak and two groups before us had not spoken. That is what happened.

Deputy Pearse Doherty

That is why I am sorry the Rural Independent Group Deputies were not able to contribute to the debate because I am sure-----

(Interruptions).

Deputy Pearse Doherty

That is why I said I am sorry they were not here to contribute to the debate because as I am sure they would have a lot to add to it.

Deputy Mattie McGrath

The Deputy cannot have it both ways. He cannot have his cake and eat it.

Deputy Danny Healy-Rae

Sinn Féin is all over the place with the carbon tax.

An Ceann Comhairle

A bit of order now, Deputies.

Deputy Pearse Doherty

I thank everybody for contributing to the debate and supporting the motion. It is disappointing that the Government has tabled an amendment. I have raised these points with the Minister who was shouting over to Deputy Carthy saying, "Ye supported this", and all that. I can read him the transcripts. He is giving the impression now that he set this date of 3 October because he wanted to review the issue. I specifically asked him at the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach if he would review it. I said if we removed excise duty from petrol and diesel at current prices when we are dealing with the Finance Bill, the price would be €1.91 but, by continuing on this trajectory, it would be about €1.96. I said it could actually go higher and asked the Minister whether, if it crept up close to €2, he would be willing to review it. He said "No". I can read out his own words if he wants. He said he was legislating for this and that this was what he wanted to do. He then introduced the caveat that the Government keeps everything under review. However, he said he was keeping this.

The point is we made it very clear that this is the trajectory it could have taken and that prices could have risen in the international markets, which is what has happened, over the summer. We know the reasons for that and now we are seeing the price of petrol and diesel creep up to €2, which is what I suggested it could reach, and the Minister has decided not to send a signal tonight on the two increases he plans. Not content with the increase in September, which the Dáil could not deal with as it was not sitting, there are further increases of 2 cent and 2.5 cent on 11 October, with a further increase again on 31 October.

Many Deputies from Border communities talked about the impact on individual businesses. I sat down with many retailers recently. They come from some of the most deprived communities in our State, places on the Border like Lifford and Ballyshannon. The reality is if there is a 10 cent increase in excise duty and that is not reciprocated in the North through the British Government, it makes these businesses unviable. Maybe the Government is not interested on the impact it will have on Border communities, but there must be an analysis of what excise duty does to businesses that are supporting jobs in areas with levels of deprivation we do not see anywhere else in the State.

At the core of this motion is a cost-of-living measure. The Minister was clapping himself on the back on what the Government has done in successive budgets. In the middle of a cost-of-living crisis, when inflation is still running at 6% and prices are still going up, the Minister is planning to increase the price of petrol and diesel. He did it in September and is planning to do it on 11 October and again on 31 October, which is madness as we creep up to a price of €2 per litre at the pumps.

This motion is sensible. It asks the Government not to proceed with that increase and to do what I suggested when we dealt with the Finance Bill at an early stage. I said that if prices were creeping up to €2, this would need to be kept under review. When the Minister said "No", I said this is exactly what has to happen. We are at that point now. These increases should not go ahead and definitely not at this time. I again make the point that this is another example of how out of touch the Government is with ordinary people who are struggling with the cost-of-living crisis. I ask the Minister to reflect on the fact that one in eight families cannot pay its energy bills. How does he think they will feel when he increases the price of petrol twice in the next month?

Amendment put.

An Ceann Comhairle

In accordance with Standing Order 80(2), the division is postponed until the weekly division time tomorrow.