Paul Murphy: Calls for Windfall Tax on Big Energy Profits
Paul Murphy addressed the cost of living and energy crisis, accusing big energy companies of profiteering and calling for a special windfall tax and measures to cut household bills. He urged the Government to use powers such as maximum price orders, withdraw the carbon tax increase, freeze rents and invest in public services and retrofitting.
Energy sector profiteering
Energia announced three price increases in six months up to September 2021 and made over €130 million in profits in that period, a 51% year-on-year increase, Murphy said. He argued these soaring profits demonstrate windfall gains while consumers face heating-or-eating choices.
Fiscal and price controls proposed
Murphy called for a special windfall tax on big energy companies and for the Government to impose maximum price orders on electricity, home-heating oil and gas. He also said the Government should withdraw the planned carbon tax increase in May and abandon the carbon tax entirely, which he described as placing burdens on ordinary people.
Social impact and vulnerable households
High energy prices, Murphy warned, contribute to poverty and cold-related deaths, which he said total 2,800 people per year in Ireland. He highlighted the worst affected groups as the elderly, single parents and their children, and travellers, and described current Government proposals as hopelessly inadequate.
Public services, transport and housing measures
Murphy urged an immediate rent freeze and the creation of an independent rental review board to enable tenants to seek rent reductions. He proposed making public transport free nationally, noting the Government's estimate of €54 million for a 20% fare cut for nine months implies a €360 million annual cost for free public transport, and called for expanded, frequent nationwide services.
Energy transition, retrofitting and infrastructure
Murphy opposed new fossil fuel infrastructure such as Shannon LNG and expansion of data centres, arguing for a rapid shift to renewables and reduced energy usage. He proposed a publicly funded retrofit programme costing about €2 billion upfront, delivered at zero upfront cost to householders and paid back over 15-20 years while creating green jobs and cutting emissions.
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There's an elephant in the room when it comes to the cost of living crisis facing ordinary people. It's an elephant which the Government in particular doesn't want to talk about and denies exists. And that is the profiteering by big energy companies in this country. The Government has denied it, but we have the proof of it. Energia, last year in six months, up to the end of September 2021, announced three price increases. In those same six months, they made over €130 million in profits. A 51% increase year on year. Stop to think about that for a minute. Hiking up prices while profits are soaring. So for some of us, the high price of energy is a cause of poverty, of choosing between heating and eating. But for others, it is the source of riches. In particular, big companies generating energy from carbon gas or wind and hydropower have taken the opportunity to drive up prices while their costs remain the same. The result is massive windfall profits in the process. We need a special windfall tax on the profits of the big energy companies and we need to use that money to invest in bringing down energy bills for ordinary people. High energy prices hit those who are already struggling. Ireland has one of the highest deaths from cold-related diseases – 2,800 people per year. Those worst affected are the elderly, single parents and their children as well as travellers. But the Government's proposals – and I think they know it – for tackling the energy crisis and the cost of living crisis are hopelessly inadequate. A much more fundamental programme of measures is essential. The Government has the power – they don't want to talk about it – but they have the power to impose maximum price orders on electricity, home-eating oil and gas. They should use that power. And don't come and say it's not possible because the costs are going up. Look at the profits I just pointed to in the form of Energia. Cut into those profits with a maximum price order to ensure that people can afford to heat their homes. The Government will impose a carbon tax increase in May. They should withdraw it. They should withdraw the carbon tax itself, which is entirely ineffective from the point of view of tackling climate change and puts the burden onto ordinary people. The Government should order an immediate rent freeze and then set up an independent rental review board that would enable tenants to seek rent reductions, because that is what is necessary. We have the dearest childcare service in Europe. We need a publicly run, not-for-profit system to provide high-quality care that is urgently needed, while removing the ruinously expensive costs of private childcare. The Government has cut public transport fares by 20 per cent. OK, we welcome that. But why not go the whole way? Why not make public transport free? Why not make a real difference to the cost of living for many people, while sharply reducing carbon emissions? Transport is the number two emitting sector in Ireland. The figures given are interesting, because the Government now estimates a 54 million cost of a 20 per cent fair cut for nine months. That indicates a full-year cost of making public transport free for everybody of 360 million. Substantially less than the Government in PQs has always indicated to us, when we have been campaigning for free public transport, that the cost would be. The Government should do it, but obviously that is not enough. We need to invest in then extending public transport nationwide, so it is free, frequent and fast across the cities and towns of Ireland. The other point I want to make is, essential to this, like I heard or saw Patrick O'Donovan referenced, being on a radio station this morning and saying we have to have Shannon LNG, so the wind doesn't blow all the time etc. That is just a recipe for continuing with fossil fuel dependency. No, no more fossil fuel infrastructure, none whatsoever, and a rapid transition to renewable energy. But a vital part of achieving that rapid transition is reducing energy usage. That is why we are opposed to the expansion of data centres. It is not possible to walk down an upward moving escalator. We have to reduce energy usage in this country. And a crucial way to do that is a programme of retrofitting. Not the kind of scheme that the Government has, which is that if you have 25,000 euros, okay, we will match that and then you can do it. But no, it is a scheme that actually, on a public basis, creates huge numbers of green jobs to go and retrofit at zero cost upfront for the householder. And then share the benefit over a period of 15 or 20 years between the householder and the state. That the state can borrow at practically 0% right now. The upfront cost of this would be 2 billion euros, but over time absolutely pays for itself in terms of the benefit of the householder. Having a warm, well insulated house, saving money on energy bills and from the point of view of all of society in terms of reduced energy usage and reduced carbon emissions. The big party. The big party.
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