Simon Harris: Government to act on rising fuel and energy prices

Thank you. Thank you, Cathaoirleach. And I welcome the opportunity to address the House this evening on an issue that is weighing heavily on households, on businesses, and indeed on families right across the country. And it's right that we're debating this issue tonight and examining solutions that can be found tonight. That issue, of course, is the rising cost of energy and fuel prices, driven, as we all know, by the global uncertainty caused by the ongoing conflict in the Middle East and the Gulf. Let me say at the outset, the priority in all our work, all our commentary, all our interventions should be to seek immediate de-escalation. I think that's a view shared across this House. De-escalation, of course, for humanitarian needs, but also because, from an economic point of view, de-escalation would lead to the greatest level of certainty. While de-escalation is a priority for Ireland and a priority for all EU member states, the Irish government is actively preparing for a variety of economic scenarios. This government understands the pressures that families and businesses are under. They're feeling it at the pumps, where the cost of filling a car has risen considerably in the space of just over a fortnight, and they're seeing it in the cost of a fill of oil. Successive governments that I've had the privilege of serving in have responded to a variety of global crises, whether that was during times of pandemic or after Russia's brutal illegal invasion of Ukraine. Today, as you'd expect, Ciarán Lach, I've spoken further with the Taoiseach. I've also engaged with relevant ministers and I've had further briefings with my own economic team in the Department of Finance. And this evening, I want to confirm to this House that we're now finalising what we believe to be an appropriate intervention for the areas in which there is most acute pressure and challenge. The government's response will be formalised and agreed at the next Cabinet meeting. I also want to say this, Ciarán Lach. Considering the level of significant international volatility, I strongly believe that any intervention should, in the first instance, be for a short period of time. This is to fulfil two objectives. Firstly, to enable the assistance to be applied quickly. Secondly, to provide the government with the time and the space to adapt our response should this fast-moving and evolving situation require that. I don't believe there's anyone, quite frankly, in this House, on any side of this House, who can speak with great certainty about where the conflict in the Middle East and the Gulf region will go, and indeed the true scale of the medium-term economic consequences of an enduring conflict. The volatility is that acute. Since the outbreak of this conflict, I've been engaging extensively with European counterparts. What is clear from all my conversations and meetings is the need to avoid knee-jerk responses, but instead focus on informed, sensible, proportionate measures. It is important to remind the House tonight that government has already taken a number of actions on energy, the benefits of which are already in place. We extended the lower 9% VAT rate on gas and electricity until the end of the decade. We've increased the weekly fuel allowance, which remains in place. And last week we expanded eligibility to 50,000 more homes who will now receive for the very first time the fuel allowance, with the payment backdated to the 1st of January. This means a back payment of €380 for so many that is already in people's pockets. These are practical supports designed to ease pressure and to provide some certainty in very uncertain times. Ciarán, the crisis also reminds us of something deeper. Ireland and the European Union remain exposed to fossil fuel price shocks. As long as we rely on imported fossil fuels, events far away, far beyond our shores, and decisions taken far away, will continue to impact in a real way on households and businesses across Europe. This is not a sustainable position, it's not a secure position, and the only lasting answer is to reduce that dependence. That means accelerating our transition to renewable energy, improving efficiency, and building a system that is more resilient and more within our own control. That is about stability, it is about security, and it's about protecting the Irish people from future shocks like the one we're experiencing today. Let me address this point clearly. Future carbon tax increases are not the cause of the current spike in energy prices. We need to be truthful about that. The evidence shows that what we're seeing now is overwhelmingly driven by global events. And stepping away from our long-term approach would not shield households from those global forces. What it would do, however, is delay the transition that ultimately gives greater control over our energy future. When people adopt a simplistic approach to this issue, they're forgetting that 58,000 households benefited from home energy upgrades last year alone. Ciarán, government will act at this moment of great uncertainty. We'll act, but we'll act responsibly. We'll work across this house. And we're also clear that fairness must be at the centre of that response. Where there's evidence of unfair pricing or behaviour not in line with consumer law, it must be investigated and it must be acted upon. This Oireachtas should be willing to strengthen laws further in this area and certainly the government is up for that. People need to have confidence that they're being treated fairly and that no one's engaging in opportunistic pricing at a time like this. Before I conclude, it would be remiss of me not to recognise our defence forces and diplomatic corps working in the region for the protection of Irish people and indeed for the protection of Lebanese citizens too. At a time of such conflict and turmoil, and we're obviously considering the economic part of that this evening, the women and men of Ógailn na hÉireann truly are carrying out the world's most important work, that is the work of peace. In closing, I want to assure this House and most importantly the Irish people that this government will act. We'll act in a manner that's fair, responsible and we will conclude our proposals in the coming days. It will be quicker than any legislation you're bringing forward which isn't before this... Okay, may I speak on a very important issue? I want to work in a collaborative fashion, I don't need to be shouted down, thank you. It's an important issue, Peirce. We will act, we will... Peirce, please, just on some occasions, on some occasions, just arc the partisanship, just the odds. We will act, there will be decisions taken by this government before this Sinn Féin motion even arises for a vote, before it even arises for a vote. There's no vote tonight, you see, there's no vote tonight and there's no legislation. A number of Sinn Féin TDs have said the legislation before the House tonight, there's no law. For people watching in, there's no Sinn Féin law before this House tonight, there's a motion. And the motion brings forward suggestions. On a point of order, and with respect, maybe the Connoisseur is not aware of the legislation that I introduced before the House, so I'm asking him to withdraw that. While you refuse to act, we have acted. People are demanding legislation. I drafted the legislation, it is before the House, and all it takes for you to say is, you know something, we will act, let's do it tonight, let's reduce petrol, diesel and whole meat and all, because the legislation is before the House, so you should withdraw that. Well, so for the benefit of Deputy Doherty's hearing, we've already said this evening, very clearly, we'll act. I've already said the Government will act in a responsible manner. I've already said the Government will take that decision at the next Cabinet meeting, and I've already said that will be before the final vote on the Sinn Féin motion. That's what I've said. Not everything has to be partisan, not everything has to be shouty noise. As I heard the Sinn Féin First Minister of Northern Ireland say today, maybe a little less noise and more working together. I think that's sage advice from Sinn Féin on this occasion too. Maybe let's apply it to here and not take a partitionist approach. We will act in a fair manner, we'll act in a responsible manner, we'll conclude that work in the coming days. We're living in times of great uncertainty, but I am pleased to say our economy is resilient. We do approach this moment from a position of relative strength, a moment that's causing real anxiety for people. I want people to know we approach this from a moment of relative strength. More people in work than ever before, buoyant public and private sector investment in our country, real incomes continuing to rise for the first time in a while, and a medium-term fiscal plan that will safeguard our economic future and that of our people. We know this is a difficult time, we know the pressure that family and businesses are under. We are and we will continue to support them. Go raibh maith agat.