Petrol and Diesel Excise Rate Increases: Motion (Resumed) [Private Members]
The following motion was moved by Deputy Pearse Doherty on Tuesday, 30 April 2024:
That Dáil Éireann:
notes that:
— AA Ireland's latest monthly Fuel Price Survey has reported a surge in petrol and diesel prices over the recent period;
— these are the highest prices reported in 2024, with almost a 13 cent increase in petrol and a 9 cent increase in diesel since January 2024; and
— fuel prices have risen by more than 30 per cent in the past three years;
acknowledges that, as of 1st April, the Government chose to increase the price of petrol and diesel for households despite the fact that many households continue to struggle under the cost-of-living crisis;
rejects the Government's plan to further increase fuel costs for workers and families twice more this year; and
mandates the Government to scrap its plans to increase the price of petrol and diesel on 1st August and yet again on 9th October, and reverse the increase that took place on 1st April.
Debate resumed on amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:
"notes that:
— the volatility in fuel prices experienced now and over the last two years is due to a variety of geopolitical issues, including conflict in the Middle East and Ukraine, none of which the Government has control or influence over;
— crude oil is an internationally traded commodity, and its price is determined by changing global demand, and while the price of a barrel of oil has increased in recent weeks, prices are well below the highs of more than $110 a barrel experienced for much of 2022;
— figures published this week by the Central Statistics Office show that the annual rate of inflation fell to 1.6 per cent in April, the lowest rate of increase since mid-2021;
— within the above constraints, the Government has recognised the struggles many people and businesses have faced with increasing fuel prices, and has been very pro-active in responding to these fuel cost challenges over the last two years;
— in particular, the provision of temporary reductions in the rate of non-carbon Mineral Oil Tax applying to diesel, petrol and marked gas oil (MGO), which were due to be reversed in October 2023, but were further extended in Budget 2024;
— to date, the reductions are estimated to have cost over €1.2 billion in terms of revenue foregone since their implementation in March 2022;
— in their pre-Budget submission for 2024, Sinn Féin provided for a full restoration of excise from April 2024, meaning an increase of 8 cent, 6 cent, and 3.4 cent in a litre of petrol, diesel and MGO respectively earlier this month under the Sinn Féin proposals, instead of a two-step restoration proposed by the Government; and
— the cost in 2024 of the measures proposed in a previously published Sinn Féin motion is approximately €165 million, which has not been provided for in the party's budgetary proposals;
recalls that:
— in addition to its fuel excise reductions, the Government has made substantial fiscal support available to assist with the cost-of-living challenges amounting thus far to some €12 billion;
— Budget 2024 provided for €2.7 billion in once-off cost-of-living measures (net of windfall gains from the energy sector) which included;
— extending the 9 per cent Value Added Tax rate for gas and electricity to 31st October, 2024;
— extending the reduced rate of excise levied on fuels;
— three €150 electricity credits; and
— €1.1 billion in social welfare and other expenditure measures;
— this approach to the cost-of-living challenge balances the need to provide the necessary fiscal support to households and firms while, at the same time, avoiding a situation whereby the Government's fiscal response becomes part of the inflation problem;
— the policy response has been focussed on measures that are temporary, timely and targeted at those most in need; and
— Government has also been conscious of rising borrowing costs as well as the need to preserve price signals, in other words, the need to avoid interfering with the transition to carbon-neutrality;
recognises that:
— carbon tax is a key pillar underpinning the Government's Climate Action Plan 2024, to halve emissions by 2030, and reach net-zero no later than 2050;
— the Programme for Government: Our Shared Future committed to increasing carbon tax and the Finance Act 2020 provides for a 10-year trajectory for carbon tax increases to reach €100 per tonne of CO2 by 2030;
— a significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long-term, provide support against fuel price impacts by reducing our reliance on fossil fuels;
— analysis, undertaken using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package, has confirmed that the net impact of the combined measures is progressive, and households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures; and
— in the long run the best way to protect Ireland from the impact of international fossil fuel prices is to reduce our dependence on them, and we will achieve this through the progressive decarbonisation of the Irish economy and society, and through the steps that will be taken to meet the Government's commitment to reach net-zero greenhouse gas emissions by 2050; and
further recognises that:
— the Minister for Finance will continue to monitor and review the position in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024; and
— Budget 2025 is the appropriate time for the Government to set out its taxation and expenditure decisions in response to the cost-of-living pressures currently being faced by many households.".
- (Minister for Finance).
I welcome the Sinn Féin motion and the opportunity to discuss in the House again the cost of living and the impact it is having on people.
Tomorrow, Social Justice Ireland will give a presentation in the audiovisual room. It would be well worth going to as Social Justice Ireland always has sharp analysis of what is happening to people at the bottom of our society. It is a measurement that often gets ignored when we look at the figures churned out by the Government. We are still in a cost-of-living crisis. According to the ESRI, average household expenditure has more than tripled since the start of 2021, in four years. Has anyone seen a tripling of their wages or income, including social protection finances in three years? They have not. In order to keep the wolf from the door and their heads above water, those at the bottom cannot continue to carry this burden of increases in their cost of living. According to Amárach research, almost 40% of adults believe their financial situation has worsened even more since the beginning of 2023. This is reflected in many of the cutbacks families face. Amárach also found that 60% of parents say their wages just about cover monthly expenses, such as rent or mortgage, utilities, groceries and childcare, with little or no money left for social activities, savings or emergencies. Those social activities include sports, leisure and external education for children. We need appropriate Government intervention and implementation of price controls, especially when it comes to the necessities of life. This is one of the necessities of life.
The Government has the legal power to impose an order but refuses to use it because, it appears, controlling prices would mean the profits of large energy companies and private institutions that control the necessities in society will have to take a hit and we cannot tolerate that, can we? It is clear that this Government is a slave to the belief that it cannot interfere in the market. The result has been a governing approach that takes little account of the social issues and suffering as more and more families find the further price increases unmanageable. Given that we, in this country, give multinational corporations all kinds of tax breaks and monetary incentives to operate and stay here, we should at least make sure that cost-of-living crises do not get worse for the majority of the population.
We have seen significant increases in energy prices over the years. The Government claims that increases in gas and electricity prices are due to market forces. However, instead of properly regulating the energy sector or even taking key energy companies into public ownership to be run under a not-for-profit mandate, the Government has bailed them out in the past two years by giving households energy credits. Remember the day when we ran the ESB under a not-for-profit mandate. Remember the revenue it returned to the Exchequer, while we also had the lowest energy costs for households in Europe. It appears the Government has enough money to subsidise large private energy suppliers but not to help its citizens.
The Government already increased petrol and diesel prices in April and has planned increases for August and October. It will be entirely due to the Government imposing unnecessary taxes on working people that families who are already struggling cannot make ends meet. The planned restoration of the fuel excise duty is a cruel and unnecessary practice, especially when the Government is already making a lot of money from corporation tax and has run budget surpluses in the past two years and will potentially again this year. In the current economic environment, I wonder if it absolutely necessary to reinstate the excise duty on fuel and what are the benefits of implementing it this year. Have any risk assessments been done to estimate the societal impact of reinstating this tax, particularly on the poorer sections of society? I suspect this tax on fuel will increase other cost-of-living overheads and make workers and families more at risk of poverty.
Instead of imposing additional taxes on people, there should be legislative measures to cap petrol and diesel prices and implement a maximum price per litre. My party, People Before Profit, introduced a Bill on energy price controls in 2022, to amend the Consumer Protection Act 2007 to help people with rising costs. It was rejected by the Government. Instead of imposing fuel taxation, we should legislate to facilitate maximum price control.
I also want to see further tax measures on the fossil fuel industry. We have been informed the Government is willing to look at additional taxes on the fossil fuel industry. When will see that implemented? The fossil fuel industry is not only responsible for significant environmental damage and the deteriorating climate, it is also heavily taxed. With this multibillion euro industry, we see no reason a carbon tax needs to be imposed on ordinary people. I was a member of the committee that looked at the climate Bill and we vehemently opposed the introduction of a carbon tax on ordinary people, supposedly to change their behaviour. It has not worked. The behaviour of people who do not have any choice but to get into their cars or heat their homes cannot be changed if they do not have access to public services or cannot afford retrofitting. A motion was overwhelmingly passed by the committee that the Minister for Finance, who was Deputy Donohoe at the time, would examine the possibility of an additional tax on the profits of the fossil fuel industry to facilitate the retrofitting of homes. Do I believe that ever happened? No, I do not. However, it is still on paper in that climate report and it is still one of the motions that was passed by the majority of elected representatives of the Seanad and Dáil.
The other issue I continue to pursue is free, frequent public transport. If we were to implement it, we would take many people out of their cars. It has to be more frequent and reliable, but with the determination to do it and make it free, we could utterly change the nature of transport, the cost of living and the atmosphere, climate and air quality. This measure has been proven in 100 cities and locations on the planet, but the Minister responsible rejects it as nonsense and says that people would make too many unnecessary journeys. In other words, they would have nothing better to do than stay on the bus or train all day. It is a terrible response to a sensible, modern measure that is increasingly popular throughout the world.
I welcome and support the motion that the tax on fuel should at least be postponed, if not abolished. Too many people, including families and small businesses, are struggling to cope with rising energy prices. This reinstatement of the fuel tax will make life much more difficult for many people. I urge the Minister to reconsider reinstating the fuel tax and to properly evaluate the cost-benefit analysis of his plan and how it will affect society. I also urge the Government to investigate and take on board the motion and the idea of taxing the profits of the fossil fuel industry in order to scrap the imposition of carbon tax on ordinary people and put it back on the culprit of the damage that is being done to the planet.
This motion seeks that the Government would scrap plans to increase the price of petrol and diesel on 1 August and yet again on 9 October. It also seeks to reverse the price increase that took place on 1 April. The main rationale to the motion is to recognise fuel prices have risen by more than 30% in the past three years and to recognise the significant and pronounced negative effect this is having on the general cost of living and hard-pressed families caught in the grip of these increases.
Much of the rationale around raising excise duties on fossil fuels is to raise revenues, to try to provide for carbon mitigation and for just transition and to force behavioural change in terms of consumption patterns of fossil fuels where this is possible. This is the kicker - where this is possible. For many of our most vulnerable, the impact of rising prices is not something they can offset. They cannot afford new heating systems. They cannot afford the retrofitting of houses. They cannot afford the installation of solar power. They cannot access cheap wind power. They cannot change their inefficient fuel-guzzling transportation to electric transportation, for example. Neither can they significantly expand their income generation, given many of the social and economic barriers they face.
I, like may others in this House, can understand the Government's desire to meaningfully plan for a transition from fossil fuels and in doing so require increased levies to both create new income streams and to force behavioural change. It is true that in general society, some behavioural change is becoming more apparent. I refer to the move to public transport in large urban centres if a viable alternative exists or is provided. Certainly, people are replacing fossil fuel cars with electric vehicles. Yes, they are replacing old kerosene oil boilers for new electric heat pumps and are increasing home insulation. However, for a great many households, the options to reduce costs and their consumption are just not there. For many households, even where it is possible, substitutions cannot be entered into because in many cases, we do not have the manpower to carry them out. Yet the ironic thing, particularly in terms of motor car transport, is that it is those who can least afford the excise increases who bear the brunt of these cost increases. Why? It is because an older car is much more fuel-inefficient. It is also because of the longer commutes many of the people who drive these cars face because they cannot live in the more affluent and closer parts of urban society. Older cars also require more maintenance and have greater wear and tear due to component breakdown.
The major backdrop to all of this is the cost of energy and the possible substitutions the Government is supposed to be working on. When first mooted, the carbon tax was to fund increased wind and solar energy generation, which would help to mitigate international supply costs. This has been happening at a snail's pace and a significant portion of the carbon tax is now being used as solidarity support to support cost of living and expenses due to inflation, rather than on a targeted roll-out of carbon mitigation technologies. What is most important is that the Government presents a new, credible plan for the future that clearly outlines what major milestones are possible in terms of renewable energy generation over the remaining life of this Government. There are many in society who would be prepared to pay that price if they could see value in the policy and in the roll-out but this is not happening to date.
I will highlight two areas to the Minister of State. One is the area of retrofitting and I am sure he is quite aware of where the costs of retrofitting have gone and despite the talk of the Government-supported grants and all the rest of it, it is not feasible now for a great many people to engage in retrofitting their houses. Again-----
We launched a new low-cost loan last week.
We launched a new low-cost loan last week.
Even if the Government did do that I can tell the Minister of State, from people I am talking to that-----
I have been down in Waterford and I have seen very few houses that have been retrofitted.
It only started on Tuesday.
I have seen very few people engaging in a retrofitting scheme and everybody who has looked at it tells me it is not affordable for them.
I will send the notes to the Deputy.
Regardless of whether the Minister of State might think it is affordable-----
That is not the same scheme.
-----I can tell him that for the people I am speaking about, it is not. That is one thing. Second, HVO deployment, which is not really happening around the country to any great extent, would be some way of mitigating the cost of fuels. Beyond that, many people have raised the issue of solar farms in this House. Every farm in this country has some kind of round top or flat top hay barn and we expect farmers to step in all of the time to provide that solar power. Why would the State not do that in a far greater way? Surely this is one of the ways we could significantly mitigate the amount of electricity generation and the amount of energy we are buying in versus the electricity we could generate. This is one of the things that should be looked at in the remaining time of the Government in terms of the carbon tax, namely, exactly how we are spending it, what value for money we are getting and how we are deploying it.
The Rural Independent Group will have two speakers who will have two minutes each.
I also compliment Sinn Féin for bringing forward this motion that will try to deal with the cost of living issue for people and in this case, excise on fuel. The Government made a big hoo-ha about giving the excise rebates and they were very welcome. However to put the excise on now, especially for rural Ireland, the farming community, hauliers and everybody else is heartless and intolerable. Tomorrow is Lá Bealtaine, the first day of May. It is a very special day in the church calendar. There are a lot of piseógs and people go round and shake holy water on fields - na páircí beaga agus na páircí mór - and on our houses, machinery and everything else. We do it at home. Where is the Government's vision? I raised this issue last week under the Order of Business or Questions on Promised Legislation and I was told by the Minister, Deputy Michael McGrath, we would have to wait until the budget. This is happening now. On the one hand the Government is, mar dhea, giving business supports and then tomorrow is the closing date for applying for them. Yet, the Government is going this. Nobody else is doing it, it is the Government that is doing this. There is this scheme and that scheme but they are so convoluted and the take-up of them is small. However, the Government will not do the simple things that make basic sense and that are simple and that mean something to the people who are trying to survive, provide services and plant their crops with the hope of reaping them during the harvest. Please God they will if this weather lasts. We had a good chance last week and buíochas le Dia for that. It is incredible that the Government is so out of touch and would come back to take away the reliefs it had given people and that were so badly needed. It is incredible that the Government would remove them at such a sensitive, difficult and desperate time for householders, small businesses, motorists going to work and all of the hauliers, from the bread vans to the biggest trucks. It adds cost to everything else. The Government is defunct, should pack its bags, get out and go to the people and let some new Government that can govern be elected.
Given the fuel taxes being considered at this time, the Government should be facing an amazing crisis because it has no understanding of the difficulties in which people find themselves in this country at the moment. The Government is quite smug about it and quite happy. The Green Party is wagging the tail and the Government is running along with it. The price of a barrel of fuel is at its lowest ever but price of fuel in Ireland is rocketing through the roof. People cannot afford to get into their cars. They cannot afford to take their children to school. They cannot afford to put food on the table. The Government did the people as well with its 9% to 13.5% VAT rate. The Government is shutting restaurants all over the country. It does not have a clue of what the reality is on the ground. People who depend on public transport cannot get it. In my own constituency - and I cannot dwell on that as it is right through the country as well - there are areas such as Ballinhassig, Goleen, Dunmanway and Drinagh that have no public transport - nothing. There is no public transport in most of those places. Ballinhassig has a Senator from west Cork who is roaring every day of the week and blaming private operators when it is the Government that should be delivering there. He is failing in his duty to deliver to the people of Ballinhassig but is of course pointing the finger at everybody else but his own Government. It is a crazy situation and there are politicians all over west Cork. A Fianna Fáil councillor was shouting and roaring and blaming me because the funding for roads is lower now than it ever was. The lowest allocation was this year. There was a big meeting in Government Buildings last week about the roads allocations for west Cork when it is the Government that is to blame. That meeting should have been held four years ago. We find ourselves in an astonishing situation.
People are struggling. The Government does not seem to care. Everyone in the Dáil was looking forward to a carbon tax. Nobody wants to hear about it now. People are all heroes now.
The director mentioned by Deputy Shanahan is correct. Things are not happening in my constituency. People should not have to wait two years for retrofitting. The Green Party is in government. It should get out of Government. It is not fit to be in government in this country. It has turned its back on the people and they will turn their backs on it in the next month.
I am happy to speak on this motion. I support the principle, but it is difficult to take lessons from a party that supports the carbon tax. That being said, the Government should consider scrapping its plans to increase the price of petrol and diesel on 1 August and 9 October and reverse the increase that took place on 1 April. Just six weeks ago, I made the same request to the then Taoiseach, Deputy Varadkar, who insisted that it would not be possible to review or postpone planned hikes prior to the next budget. Not a fortnight after that, however, Ministers and Senators came before the cameras with a support package for SMEs, which was welcome but highlighted the selective nature of the approach being taken by Government.
We know these increases will have an adverse impact on motorists, hauliers, agricultural contractors and farmers. Only last week, I raised this issue on behalf of farm contractors. When I raised the matter with the then Taoiseach, Deputy Varadkar, he stated that the Government would monitor prices over the next couple of months. The monitoring should reveal that urgent action is necessary on this matter. Will the Government take action or will it offer, yet again, more excuses around merely reviewing the situation? This is inaction dressed up as action and nobody is falling for it.
I support the motion, but I am a little confused. While we in the Rural Independent Group support the motion, it seems a little late for Sinn Féin to now be concerned about higher fuel taxes when it has consistently supported them in the past. It failed to support the Rural Independent Group when we moved motions in the House to roll back fuel taxes and scrap the carbon tax.
Sinn Féin's position on fuel taxes, especially the carbon tax, is extremely misleading to the Irish people. Thanks be to God I have a memory, because I recall when carbon taxes were proposed here, the chorus from Sinn Féin at the time was that the taxes were not going far enough and were not being introduced quickly enough. I continuously remind people in County Kerry of Sinn Féin's position.
I continuously remind them of what its leader said in a speech, where it was clearly stated that the Government was not going far enough quick enough. I represent people from Kerry who are hard-pressed to heat their homes and to go to work. That is why we brought forward motions asking the Government to go back on what it was doing. I have been the holder of carbon and marked gas oil licences for the past 34 years. I sell fuel and see every day of the week what difference prices make to people going to work and what it costs to fill a car or van. I open at 5 a.m. and we start serving people at 6 a.m. I know the difference the price of fuel makes for people in rural Ireland who drive vans, jeeps and cars to work. I see what it means to older people filling their home heating oil tanks with kerosene. I think of what Sinn Féin did to those people when it supported the carbon tax.
It is 100% true. I have a memory. I remember that Sinn Féin did not support us when we wanted support in asking the Government to go back on what it had done. The Government has let down the people, and I am sorry to say that.
Two years ago, I brought a truck to the Dáil and asked for the support of the likes of Sinn Féin and others across the House in respect of the fuel crisis. Did they support us? No. Did they vote on the last carbon tax? Yes. When there is an election, Sinn Féin turns to the people of Ireland and decides it needs to change. It has more faces than a Rubik's cube. It voted for carbon tax and "Yes, Yes" in the two recent campaigns. It then told people it was pushing for a "Yes, Yes" vote, but actually voted "No".
Every time there is an election, Sinn Féin tries to fool the people of Ireland. It is great that there is social media now, because we can see what Sinn Féin stands for. The local, European and mayoral elections are coming up. Sinn Féin will now try to say something.
It proposed two amendments to strengthen the hate speech Bill. It tells people it is for the people of Ireland; it is not. It is a populist party that goes one way one minute and when something is not popular and it is not going up in the polls, it turns the other way. That is what Sinn Féin is, if people want to hear it. It does not stand for people in Ireland who are suffering as a result of the fuel crisis. It does not stand for people in the agricultural, transport or private bus sectors who are suffering. It does not even support the people in this country who work because it voted on carbon tax. It started voting with the Government on this, and its representatives now come to the House and say they are against it. I cannot believe another word that comes out of their mouths because there is a different twist and story every time. It is like Walter Mitty. Sinn Féin is now starting to believe its own radios.
I want to echo the calls of many in the Opposition benches as we try to get through to Ministers and Government supporting Deputies the depth of hurt the current cost-of-living crisis is continuing to have on families in our communities up and down the country. Quoting macroeconomic figures for inflation growth and the like are meaningless to the working mothers and fathers across Donegal who are struggling to meet their bills and to put food on the table for their children.
Fuel prices are only one aspect of the overall financial strains faced by families who come to my offices in Donegal. That, alongside massive increases in the cost of food, insurance, electricity, phone and Internet charges and the inability to afford to rent or buy their own homes, means many people are left with a deep sense of helplessness and despair. This is primarily driven by the policies pursued by successive Governments under Fianna Fáil and Fine Gael, blindly praying at the altar of the false gods of neoliberal capitalism and the free market racketeering fallacy that is rapidly increasing inequality in our society.
The rise of extremism across Ireland is a direct consequence of policy decisions taken by this Government. In Donegal and other Border counties, as well as pushing so many families to the brink, this is having a secondary effect on many small businesses in the fuel retail sector. When I checked with them on my way to Dublin today, cross-Border differences in prices at the pumps ranged from ten to 18 cents per litre. Many of these businesses have written directly to the Minister and, in the cases that have come across my desk, did not receive the courtesy of a reply until prompted by me through parliamentary questions or following up with the Minister's office. I ask the Government to listen to the voices and concerns of people up and down the country that we are bringing to it tonight and to pass the motion. More important, I ask that the Government act on the motion once it is passed.
I welcome the motion from Sinn Féin. It is straightforward and goes directly to the heart of the matter. I looked at average petrol pump prices today, which are €1.849 and €1.799 per litre for petrol and diesel, respectively. This time last year, petrol and diesel were, respectively, 19 cent and 13 cent cheaper per litre. I then looked at the figures for April 2020, before the Covid pandemic. I could not believe the figures. Petrol and diesel were, respectively, 58 cent and 63 cent less per litre. When will these prices stop soaring? The difference in price was so great I checked and double checked my figures.
I have spoken to people throughout my constituency, in particular local forecourt owners along the Border. It is clear that workers and families are not only bracing themselves for the next increase in excise, VAT and tax on fuel, they are actually dreading it.
I am particularly thinking of the man or woman with the van who travels countrywide just to keep the show on the road, whatever that show is; those who sometimes have to drive long distances just to get to work because, for whatever reason, they cannot find work locally; the small building contractors who must lug a van full to the brim with equipment from one job to the next; small wholesalers who go from shop to shop selling everything from fish to bread; and, indeed, the large hauliers who travel the length and breadth of the country selling their goods. These are just some examples of people who are struggling from day to day and trying to estimate how much the next rise will take from their disposable income and what will they have to forgo to keep the tank from emptying. These measures are not only piling on more pressure for many small businesses but they may well be the last straw.
I have quoted the following figures before but they are worth hearing because they show very clearly that increases in fuel prices hit families in rural areas harder. If we examine the average numbers of kilometres driven each year, we see that the national average is 16,300 km whereas the average in Sligo and Donegal is 17,500 km and that in Leitrim and Roscommon is 19,000 km. This indicates that the price increases hit those in rural areas harder. While I agree that improvements have been made in public transport, they are not resulting in a cutting back on mileage because most people still need their cars to go to work. This illustrates the unfairness of the increases and their disproportionate effect on rural Ireland. None of this is news to the Minister of State, I know, but I wanted to reiterate it.
On many occasions, I have raised the circumstances of those who own petrol stations along the Border. I want to draw the attention of the Minister of State to this again this evening. In advance of its briefing in the audiovisual room tomorrow, Fuels for Ireland tells us that by January 2025, we can reasonably expect that petrol and diesel will be between 20 cent and 24 cent cheaper per litre in Northern Ireland than in the Republic if the Government goes ahead with its planned policies and increases in excise, carbon tax and the amount of biofuels used in transport fuel, all else remaining equal. This is the reality for those trying to sell fuel along the Border. Even if the UK Government reintroduced excise duty, there would still be a difference of 20 cent per litre.
I understand that the revenue the Government raises is significant and will be spent elsewhere, but surely the Department has to consider the possible loss of revenue owing to consumers crossing the Border to fill their petrol tanks. It leads to the loss of much additional revenue when the consumer bypasses the local petrol station and travels across the Border. When consumers do so, they often buy most of their groceries. There is a significant difference in the prices of alcohol and children’s toys, for example. The State is going to lose revenue not only on fuel but also on so many other products that people will buy.
I have spoken to many owners of forecourts operating along the Border. They are on their knees trying to keep the prices as low as possible. Any further increase in excise is just a kick in the teeth for them. I asked the Minister of State to reverse the increase added in April. If he cannot do so, he should at the very least abandon any further increases this year. I am really asking that he ask his Department to sit down and do the math, as they say, and consider all the people who live reasonably close to the Border. We have a very long Border. In counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth, there are well over half a million people. If you add Meath, which is pretty close to the Border, the figure is three quarters of a million. If a substantial number of these people decide it is worth their while to cross the Border because every single litre of petrol or diesel is 20 cent cheaper, it will result in a huge loss of revenue to the State. The people will almost certainly buy many of their groceries and other goods when they cross the Border. If the Minister of State does nothing else, could he do some kind of analysis of these figures? Ultimately, he wants the maximum amount in his coffers so it can be spent. The worst possible outcome would be for the State to lose revenue and for businesses along the Border to close at the same time.
I support this motion and what it sets out to do. Ireland is one of the most expensive countries in the EU in which to live. In the past four years, the cost of energy rose by 58.3% and mortgage interest has surged by 60.3%. Food prices have risen by 15.4% and transport costs are up 18.7%. Statistics show that even when energy companies began to drop their prices last year, energy costs to consumers rose by 5.1% in the very same year. These tax hikes will increase tax on fuel significantly and there is a genuine fear that the cost will reach the €2 mark at some stage this year.
We need to ensure that life is more affordable, especially for those living in rural Ireland. They pay the highest price to run a car because, in most cases, they do not have any access to public transport. Even in rural towns such as Kilrush, finding a taxi is now becoming a major obstacle. In Clare, the owners of over 36,000 cars and over 4,500 vans will undoubtedly struggle even more with day-to-day duties.
Home carers, whom we absolutely need more of, have to travel to those they care for. They often have to travel to distant, remote areas of County Clare. I think of them when it comes to these hikes. How will they keep doing their job, pay their bills and keep food on the table? The proposed satellite haemodialysis campus at Ennis General Hospital, having gone to tender, is facing a delay and it is being reviewed. A response to a parliamentary question shows that the cost of the transportation of patients to UHL for treatment has significantly increased in six years. It has gone from €127,000 to over €204,000. People are asking why the Government is delaying necessary local services for people. In the end, they will foot the bill.
I am very grateful for the opportunity to respond to some of the issues raised in the debate on the Sinn Féin motion on the increases in fuel excise effective from 1 August and 9 October this year. Sinn Féin has expressed the view that the restoration of excise duty of 1 April should be reversed and that both the final restoration of excise duty due to take place on 1 August and the carbon tax increase on 9 October should not proceed. I have noted the discussion this evening and want to respond by re-emphasising the factors behind energy inflation and the capacity of the Government to mitigate inflation and restating the importance of the carbon tax to Government policy on climate action. Climate change is real and there is no point in denying it. We have to respond accordingly.
It is important to remind the House that the driving forces behind energy prices are largely beyond the control of the Government. This point has been discussed at length over the past few years and we have made it clear that there are limitations to what the Government can do in its response. We have said many times that the final retail price of fuel is determined by several factors, most of which are due to global phenomena and are beyond the Government’s control. Market dynamics have driven have driven the pre-tax cost of crude oil up in recent weeks.
This has impacted average retail prices of diesel and petrol. We see this ebb and flow constantly. The Government has acted to relieve the impact of increased energy prices through a number of measures, including targeted welfare interventions, electricity account credits, reducing VAT on electricity and gas, reduced public transport fares and reductions in excise on diesel and petrol, as outlined earlier by my colleague.
The Government recognises that there is volatility in the crude oil market which is impacting prices. However, the Government believes that, rather than accepting this motion, budget 2025 is instead the appropriate time for it to set out its taxation and expenditure decisions in response to the cost-of-living pressures while also keeping an eye on diesel and petrol prices in advance of 1 August. Deputy Harkin cited the prices at two points in the last number of years. We all remember that in the intervening period prices went over €2 per litre. It was not that long ago. We have to recognise that. The Deputy mentioned the price of fuel back in 2020, at the outset of the pandemic. We all know what has happened since then globally and the impact that has had on global energy prices. We cannot run from Russia's invasion of Ukraine and its impact on global energy markets, whether gas or oil. It is very real and it needs to be stated when putting those prices into context. Deputy Harkin has asked for petrol prices to be looked at ahead of the next increase on 1 August and the Government has undertaken to keep an eye on that, as she has asked. That is a fair request and one that will be taken into consideration.
It is important to recognise that while there is a cost-of-living crisis, there is also a significant climate change crisis and the Government cannot ignore it, even though there are some Deputies in this House, although they have left at this stage, who simply do not accept that this is an issue. There has to be balance in the response to these two issues. In the medium to long term, the Government fundamentally believes that the best way to protect Ireland from the impact of increased global fuel prices is, of course, to reduce our dependence on them. We will achieve this 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. The carbon tax has an important role to play in achieving this objective. We have to accept that it has a role to play.
Sinn Féin's initial proposal was to fully restore excise rates on 1 April 2024. However, now it is saying that it should not go ahead and that the planned increase in carbon tax in October should not proceed. The cost in 2024 of the measures proposed in the Sinn Féin motion is approximately €165 million. We can add that to the pile.
I will conclude by stating that, against all that, our economy and people have demonstrated remarkable resilience over the last years despite facing multiple successive headwinds, including the global challenges that I have outlined. The timely nature of Government supports to date has played a pivotal role in safeguarding both businesses and households during these challenging times. We can talk about business supports that have been provided through the pandemic and the €250 million that is currently being allocated through the increased cost of business grant, registration for which has skyrocketed in the past ten days. We can talk about the package of energy grants announced by the former Minister, Deputy Coveney, in the last four weeks. We can talk about the new low-cost retrofitting loan that was launched last week, which, Deputy Shanahan should note, will allow people to get a loan of up to €75,000. We have seen massive numbers of people across the country, rural, urban and everywhere else, again in genuine retrofitting. Now we need to get the people who cannot afford that. That is why we are targeting them with these specific loans. We can also reference the ongoing work being put in by the Ministers, Deputies Burke, Higgins, Humphreys and O'Donovan, to look at a genuine package of measures that can be taken in the meantime in advance of the real decisions that will be made in the budgetary window. We are only a quarter of a way through the budgetary cycle of this calendar year. I think people should remember that.
By responding swiftly and decisively, Government supports have helped to ensure the resilience of our labour market. Having just come from the employment brief, I can report that the labour market is close to full employment, with an unemployment rate of 4.3% in March. We now have 2.71 million people at work in this State, which is a greater number of people at work today than the entire population of the State in the 1950s. At a time of global economic downturn, we are looking at an economy that is continuing to grow and putting us in a position to provide real supports and realistic budgets that can support people at every stage of life in every aspect.
Deputy Pringle said that this is not relevant to the man or woman on the street. I fundamentally disagree. We note that inflationary pressures have eased significantly from their peak in summer 2022 and that makes a difference to people in how far their pay packet will go at the end of the week, how they can do their weekly shop and how they can pay for the cost of things. The Deputy keeps referring to us having some sort of neoliberal agenda. I really have to ask if he has even read anything about neoliberalism because if I am a neoliberal, my years spent studying political science were for nothing. It is an easy trope to throw around a Chamber with someone you simply disagree with when you want to diminish the very real factors. The inflation rate fell to 1.6% in April, its lowest rate since June 2021. An average inflation rate of 2.1% is expected for the year as a whole. Key to this will be continued decline in energy prices as wholesale gas price cuts are passed through to consumers. Every Deputy has to acknowledge, when it comes to wholesale gas cuts, that there is a lag. If we just take the wholesale price of today and say that should be the price that people receive in their bills today, we are not realistically understanding how the energy market works and how it gets from the field to the house. Core inflation is expected to decline to an average of less than 3% for the year in total.
It is against this backdrop that budget 2025 is being framed. The work on that has already started. We will once again need to strike the right balance, ensuring that budgetary policy is calibrated in a manner which avoids adding to the price pressures in our economy while at the same time supporting households and delivering the infrastructure and public services that our society needs. Monitoring energy price change will remain a priority for this Government. Our response to date has been comprehensive and immediate. While many of the forces dictating the current situation are outside our control, the Government will continue to use the policy responses we have to mitigate the impacts on businesses, consumers and ordinary working people across the country.
We must remain committed to the policies which are critical to meeting our obligations on climate action. The carbon tax is a key pillar of Government policy for transition to a decarbonised society. The policy of ring-fencing carbon tax receipts for welfare supports for those at risk of energy poverty also ensures that this transition is done in a just and progressive manner. Accordingly, I do not accept the motion before the House and I present the Government's amendment for consideration.
The Government has planned three excise and carbon tax increases on petrol and diesel this year. These increases should not go ahead. The Dáil will be on holidays in August when the review of prices, which the Minister of State talked about, will happen. Does the Minister of State know what happens in August? Parents get ready to send their kids back to school because they are back in the third or fourth week of the month. These are the same parents who have to try to get money together to get their schoolbooks, their uniform and everything else they will need to get their children back-----
Not all children have the free schoolbooks scheme. That is not in place in August. Will it be in place? The fact is that ordinary people are trying to send their kids to school or college and to go to work. The Minister of State talks about a just transition. Can I explain something? If the Minister of State ever goes to Grenagh in Cork North-Central, which is my constituency, in a rural area, or to Whitechurch, Carrignavar, Glenville or Watergrasshill, he will see that people do not have one or two cars in the drive but three or four because there is virtually no public transport. The Minister of State comes in here and talks about a just transition and carbon taxes. For people living in the areas and communities that Fianna Fáil and Fine Gael forgot about, and in which they never put public transport, that is what it means. People who live in the rural areas of my constituency need transport. At the same time, the Government is putting up the price of petrol and diesel.
It is not just people in rural areas. The public transport in the areas I represent in Cork city is a disgrace. Buses do not turn up or are late. At the same time, the Minister of State is talking about how we have to pay our carbon taxes. People have to get to work, school or college. What the Government is doing with these price hikes is putting more pressure on ordinary people and families.
I call on the Minister of State to scrap the plan to increase the cost of petrol and diesel in August and again in October. It is inconceivable that the Government would increase costs for people twice this year at a time when they are still experiencing the cost-of-living crisis. Many of my constituents do not have an opportunity to use public transport to get to work for many reasons. Others cannot do so because services do not exist or they do not have confidence in them. Many workers and families do not have a choice but to go to work or to bring their children to school in a car.
The 2020 census figures show that almost 57% of commuters in Blanchardstown rely on private vehicles to get to work each day. Let me give the Minister of State some examples. I recently raised at committee the issue of ghost buses in Ongar, Littlepace and Tyrellstown. These are buses that are instructed to deliberately miss bus stops in those areas to allow them to catch up on their timetable and reach their destination on time. Other buses just fail to show at any time. How many times can a worker blame the bus service for being late for work?
Dublin West has a population of 120,000 people, yet we do not have a bus service to the airport. That is despite the fact that Senator Currie eagerly claimed credit for the arrival of such a service this year. We now know that said service will not commence until at least 2025. Can one imagine that a town the size of Blanchardstown does not have a bus service to the airport. A journey that should only take 30 minutes takes many people more than two hours on public transport. There is no reason they would need a vehicle to get to the airport.
The Government talks about encouraging children and families to walk to school, yet due to the lack of school places in Dublin West, many are forced to pass their local schools and drive miles to the next available school every single day. It is absolute madness. The Taoiseach, Deputy Harris, has to stop this increase. The Government should not heap more pressure on hard-up families, workers and small businesses.
As the Minister of State, Deputy Richmond, knows, I come from a rural constituency in County Mayo. We do not have the transport options of those living in urban areas. How many times do we have to say that we are reliant on cars to get where we need to go? The nearest train station to me is an hour away. It is a six-hour round trip to University Hospital Galway, which many patients have to attend on a regular basis.
Before 1 April, the price of petrol and diesel was already weighing heavily on household budgets. We asked the Minister to take the decision not to increase petrol by 13 cent and diesel by 9 cent before 1 April. On my way up here earlier today, the cost of petrol was €1.859 per litre. It cost almost €90 to fill the tank. Many people have to fill their cars twice or even three times a week. For someone on a low wage or who relies on social welfare, even one fill is not manageable.
People are absolutely sick and tired of listening to the Government use the phrase "But Sinn Féin". The parties in government continue to do so after 13 years in office. I heard the Minister say it earlier. We have always said that the level of excise on petrol and diesel should be kept under constant review during the cost-of-living crisis. It is a dynamic situation and it requires a dynamic response. This is why we have this motion here before the House today. All Sinn Féin is asking of the Government is flexibility and common sense. There are some things the Government does not have control over but excise duty is not one of them. Removing the hike in excise duty levied on 1 April and halting the increases planned for August and October would show that the Government has some understanding of the financial struggle households are enduring right now.
I thank everybody who contributed to the debate on petrol and diesel prices. This is not the first time that we have brought a motion like this before the Dáil. We also brought one last September.
It would be remiss of me not to address some of the hot air that we were getting from the Rural Independents. I am glad that they have left because things have cooled down a wee bit. Let me just say for the record: this Government introduced a carbon tax every year on petrol and diesel for the next ten years, or since it was brought forward in the Finance Act 2020. The one thing I would say to Deputy O'Donoghue is that he was not even here. He did not vote against it; neither did he vote for it. He was not even here when it was passed. He did not turn up.
What I would say to Deputy Michael Healy-Rae, after all the guff he gave today, is that he also did not turn up. That is not unique, because the last time we brought a motion here in response to the Government pushing up the price of petrol and diesel was in September. Do Members know who else did not turn up and contribute to the debate? Again, Deputies Michael Healy-Rae and O'Donoghue. Indeed, none of the Rural Independents turned up when their slot was called. That shows the importance they place on this issue. We hear a lot of huffing and puffing. The reality is we have been consistent in putting this issue on the political agenda. We in Sinn Féin are genuine when we say that we need change and that people are under pressure.
If Members want an example of how out of touch Fine Gael is after 13 years in government, just listen to what the Minister across the floor said. Fine Gael does not understand where ordinary people are at. I mentioned the survey that Sinn Féin carried out. One person said he is on disability allowance and relies completely on his car. He is a lone parent with three sons. He says the schools are not on the bus route, which means school runs by car are a must. He also says it is very frustrating and causes him anxiety most days trying to juggle the huge cost-of-living increases. According to him, it is like being in a vice with no way out, and the vice is getting tighter and tighter each week. Whose hand is on that vice? It is the hand of the Government. It is the Government that is tightening that vice on ordinary people the length and breadth of this State, in the middle of a cost-of-living crisis. It did not just put up the cost of petrol and diesel at the start of this month, but it plans to do it a second time. Not happy with a second increase, it plans to do it for a third time in October. We are saying very clearly that this would not happen if the Government understood where ordinary people are at.
We have never collected as much tax on petrol and diesel in the history of the State as we are collecting now. When this Government came to office, we were collecting €236 million less on petrol and diesel than we collected last year. What is going to happen this year, because the prices have gone up, is that we are going to collect more than that again. Under this Government's plan, we will have collected more excise duty than ever. The excise duties that we have currently, even before the Government plans more increases, which it intends to do, are higher than they were three years ago. This is a Government imposed penalty on ordinary people and workers who are saying to the Government that they want it to have their back. Unfortunately, anybody looking in here knows that Fine Gael and Fianna Fáil do not have the back of ordinary people. The Independents spent more time giving out about us, who want to stop these hikes, than giving out about the Government, which is pushing them up. Why is that? It is because the Independents rush to support Fine Gael and Fianna Fáil time and again.
This increase can be stopped and it should be stopped. If it is not stopped, the Government will crucify hundreds of family businesses in Border towns that now face petrol being sold for 20 cent less right across the road or the bridge. I have challenged the Ministers and the Tánaiste on what they would say to a family business that is already dealing with price pressures in terms of the minimum wage, pension auto-enrolment and PRSI increases when they are looking at forecourts where petrol is 20 cent cheaper and the Government put 10 cent of that price on at their pumps? What do they say to people in those jobs?
Deputy Doherty is out of time.
What do they say to the businessman who says he has to let an employee go because his business cannot survive in this environment? It is the Government and the Minister for Finance who have decided to increase excise duty to a point where we can no longer survive. The Government is silent on this issue. I appeal to everybody who has the backs of ordinary people across this State to support Sinn Féin's motion, back the people and stop these hikes.
Deputies
Amendment put.
In accordance with Standing Order 80(2), the division is postponed until the weekly division time on Wednesday, 1 May 2024.
