Simon Harris: Temporary Fuel Tax Cuts from Midnight

Go raibh maith agat, Ceann Comhairle. I move this resolution. It's the resolution for the temporary reductions in mineral oil tax. And this first financial resolution this evening provides for reductions in the rates of mineral oil tax applying to petrol, to autodiesel and to marked gas oil. These reductions will take effect from midnight tonight until the 31st of May 2026. The rate of mineral oil tax will be reduced on a VAT-inclusive basis by 15 cent per litre for petrol, 20 cent per litre for autodiesel and 3 cent per litre for marked gas oil. To further ease the financial impact of the significant energy price shock arising from the ongoing conflict in the Gulf region and the Middle East region, Minister O'Brien will also reduce the NORA levy from 2 cent per litre to a nominal amount that will require primary legislation which will be forthcoming this week. So when the excise reductions in petrol and diesel are combined with the changes to the NORA levy that means a 22 cent reduction in a litre of diesel and a 17 cent reduction in a litre of petrol. These are concrete actions to help and support families, working people, businesses with the real and rising cost of fuel and energy. We know the pressure that people are feeling right now. People are genuinely worried about the impact this conflict is having on their energy costs and what is facing them and their families in the weeks and months ahead. We'll have a second resolution which we'll discuss later in this House in relation to the diesel rebates scheme, providing practical support to hauliers and coach operators. The estimated cost can be uncorrelated to the exchequer of the two resolutions relating to the Department of Finance is approximately 160 million euro when coupled with the NORA levy proposal and the fuel allowance expansion that brings the total government intervention today to 250 million euro. I do want to say the government is conscious of the increased financial pressure on households and businesses arising from this ongoing conflict. These measures are an effort in the here and now to help reduce fuel prices and to help in a practical way people at the pump and to endeavour to support key sectors of the Irish economy. Solid budgetary management in recent years means we now have the capacity to respond in a timely and targeted way to help with this energy price shock and that point shouldn't be lost on any of us. If we look at countries endeavouring to deal with this global economic challenge and deal with it from a position of deficit, we see how the markets respond to those countries and we have an ability to respond because of the sensible economic decisions this government and successive governments have taken in recent years and the resilience and hard work of the Irish people. These measures will be in place for a defined period of time and I want to be very clear as to why that is. We have to remain nimble, agile, flexible in relation to any set of measures. It's entirely possible that what seems like the right economic medicine today may not be the prescription required in the weeks and months ahead. So government, and let our position not be misrepresented, we reserve the option to adjust our approach as circumstances evolve, to revise, to amend, to edit, to start or to stop measures that may be required in the time ahead and this approach isn't unique to Ireland. Indeed it's very much in line with the European Council conclusions from Brussels last week and it's also very much in line with the response of other EU member states. I think I referenced in this house last week the decision taken by the Italian government I think to bring in measures for 20 days. Every government, every set of people are trying to grapple with a fast evolving situation from both the humanitarian point of view but for the purpose of this debate from an economic point of view as well. These measures will provide mitigation for businesses and households against the recent fuel price increases. It is real money, it is a real reduction in taxes on petrol, on diesel, on green diesel and these excise reductions strike the balance between mitigating costs to consumers while managing the tax base and also respecting the law under the energy tax directive. We've got to navigate this period of uncertainty to the best of our ability. To put it bluntly, nobody knows what the situation will be in a month from now and we have to remain flexible in our response. The economic impact will depend on the depth and the duration of supply disruption. Government will help to share the burden of the energy price shock but no government in the world can fully absorb that impact. We should be truthful in relation to that and that's why I also think there's benefit in continuing to work at a European level and indeed I'll attend a meeting of the Eurogroup on Friday. Taoiseach attended a meeting of the European Council last week because we have seen in the past where conflicts have become elongated, Europe has often considered how it can move together and various policy responses and levers that we can consider as a collective. This conflict is also though a sharp reminder that we have to accelerate our transition towards energy independence. While much of the discussion is quite rightly on what we can do to help people in the here and now and that's one of the reasons we're bringing forward these measures tonight to take effect from midnight tonight. We've also got to remind ourselves that as long as we are reliant on fossil fuels from far-flung parts of the world there is a real vulnerability from an economic security point of view as well and we've got to see what we can do at a European level and at an Irish level to accelerate that transition in terms of our fuel and our energy supply and I think that's a view shared across this house and I'd welcome suggestions and proposals in relation to that. I can also say specifically in relation to this resolution, Keogh and Corla, we saw prices rise quickly enough on the four courts when the war in Iran broke out. It's very important that we see these cuts passed on to the consumer very quickly as well and government will be monitoring this extremely closely. In the past the CCPC has done useful work at the time of the start of the brutal illegal Russian aggression and war on Ukraine where the CCPC did monitor the passing on of the impact. I hear what the industry says and I accept the logic that for some small rural stations might take a little bit longer but for the vast majority we expect to see a very very quick passing on of this. As I say people were quick enough to put it up they need to be quick enough now to show the benefit of that and government also reserves the right to consider any further action legislative or otherwise that may be required shouldn't this not be the case and more broadly I want to re-indicate tonight the government's intention to strengthen further the powers of the CCPC and to work on a collaborative basis across this house with a view to doing that as well. I've heard much commentary in relation to the government's proposals today from the opposition, some constructive some less so. I do look forward to engaging constructively in the time ahead because we all must approach this challenge with a degree of humility and we have to make sure we keep a degree of our economic powder dry because the economic situation that our country will face in the winter is very different to an economic situation our country could face this summer if this conflict goes on for a longer period of time and we all hope it doesn't and we must work for de-escalation and the set of measures we may need to consider together will indeed be different too. So I'm happy and eager to engage constructively with opposition but I would ask that people also acknowledge that we are taking efforts today 250 million euro package to try and help people in the here and now. I also hope in Northern Ireland that the executive there takes the measures too that are required and I note with significant concerns the comment from the alliance MP Saoirse Eastwood today in relation to the delays and the lack of urgency in her words on the part of the Sinn Féin economy minister and the Sinn Féin finance minister in relation to measures to help people with heating costs too and I do hope that that can be resolved as well because I hope Sinn Féin's concern in relation to energy costs aren't partisan concerns and don't stop at the border. We'll work constructively with anybody in this house on ideas and proposals. Today we're bringing forward a balanced package of measures, measures to help people at risk of fuel poverty and measures to help people who are struggling with the home heating oil by extending the fuel allowance season for a further four weeks, helping almost 500,000 households most in need, many of them carers, pensioners, people with a disability but also helping people who will be getting in the car tomorrow, getting in the car this week and driving to work, driving to college, trying to go about their business and trying to help somewhat whilst being honest that no government can absorb all in relation to this too. So I propose this resolution tonight, I reiterate our message to industry, let's play fair, let's see that passed on quickly, government will monitor this closely and I also say to this house and to the people of this country in all honesty, we have to be nimble, we may well need to return to this conversation again but tonight is a start in terms of an intervention that we believe is the balanced proportionate measured response that will make a real difference in the here and now.