Cian O'Callaghan: Government's Fuel Plan Is a Half-Measure

Taoiseach, nearly a month into this crisis, and the government is finally acting on the measures that have been announced today to not go far enough. A temporary cut to excise duty to provide some relief at the pumps is long overdue, but where are the targeted supports for those who need them most? Your government, having spent weeks and weeks reviewing the situation, has come in here today and is doing the bare minimum. You're extending the fuel allowance for a few weeks, but it barely scratches the surface of what is required to support people who are struggling the most. Taoiseach, there is almost nothing in this package for low-income households who are reliant on home heating oil and unable to pay the 80% spike in prices. Your government seems to think that you don't have to help because we're now in March, but people must still heat their homes in spring, and there are vulnerable people all over the country who cannot now afford to turn their heating on. Elderly people sitting in freezing cold homes whose pensions just won't stretch far enough. Disabled people whose incomes have already been cut by €1,400 by your budget, making choices between eating and heating. And families who are at breaking point who don't know how they'll be able to keep the lights on. Taoiseach, the Social Democrats have repeatedly asked the government to introduce a targeted €400 energy credit which would be paid to 800,000 households who are struggling the most. And you've said again that we need targeted, affordable measures. This is a targeted, affordable measure. This would help hundreds of thousands of low-paid workers who do not receive the fuel allowance, and would provide a much greater level of support for pensioners, carers and disabled people. It wouldn't go far enough to cover the spiralling prices we've seen, but it would be a big help and represent meaningful support. Your government hasn't even bothered examining this proposal, so you're already in here today announcing half-measures instead of the comprehensive package that should be introduced. Taoiseach, every time we listen to lectures from you and your ministers on the importance of targeting supports for those who need them most, but there's a huge gap between what you say and what you do. Your budget reduced the incomes of the poorest households by more than 4%. And massively increased poverty rates for elderly people from 13% to 19%. That's not me saying that Taoiseach, that's the Parliamentary Budget Office. And now you come in here today when people desperately need real support, and all you have to offer them is a measure that excludes hundreds of thousands of households who are drowning in skyrocketing bills. So Taoiseach, why are there no targeted supports for low-paid workers? And will you examine the Social Democrat's proposal for a targeted energy credit of €400? First of all, Deputy, I appreciate you raising these issues in a constructive way. But I am taken by, and it's not just you who have made this comment, that the government has waited for weeks and weeks. We're in a war for three weeks. We need some perspective here. Government doesn't have billions and billions to allocate on a monthly basis, which is the implication one could draw from all of the protestations from the opposition today. So we do need a bit of reality, a bit of flexibility in terms of the fiscal situation. And in terms of thinking out to the end of the year. And making sure we have enough in reserve to cushion and to make sure we can support people if things even get worse. And that is a consideration. We also have to protect services. There are increasing costs in education, in health, and in other services. And I'm very anxious that we have enough in reserve to protect those also. So the easiest thing for us to do would be to announce a €2 billion package today. And people would say, that's great. This is only March. So I would say to people, we do have to be relatively cautious and responsible as well. Acknowledging that people out there are under a lot of pressure. No question about that. Because of the impact of the war on the energy markets. And because of the nature and unprecedented nature of the supply shock. Which hasn't yet filtered through, by the way. Hasn't yet filtered through globally or indeed to our economy. And in the budget, we did put in, and I would disagree with your assessment on the budget. I mean, what we did for child support payments was the most significant. Record increases. €8 per week for children under 12. And €16 for children over 12. And we've, as part of the Child Poverty Unit, my own department, with Minister Kaleri. We focused very much on that child poverty package, which is permanent. And today in Cabinet, Dash Plus was approved. So we've taken a series of measures, Deputy, that have really worked on the child poverty issue. And that will bear dividend in the coming years. Of that I've no doubt. Because of our focus on those key areas. On the working family. The working family payment cohort of people who up to the last budget were excluded from the fuel allowance have now been included. That's an extra 50,000 working families. And that means about 470,000 families overall of people are now benefiting from the fuel allowance. And the extension, I think, will be welcomed by all of those families as a targeted measure. It's an instrument we have, a mechanism we have within the Social Protection Party to enable us to pay people. And give them additional allowances to help them to try and cope with the very large increases that have occurred over the last number of weeks. And that will take it out to the end of April. In addition then to the reduction in excise. Thank you Taoiseach. Deputy O'Callaghan to respond. Taoiseach, you can agree or disagree with my assessment of the budget all you like. But I was quoting the Parliamentary Budget Office, which is independent. Are you saying you don't accept their independent analysis of your budget? The proposal we've put forward Taoiseach is fully costed. It's 362 million euro. It is targeted and affordable as you say measures need to be. That would leave plenty of room for further measures later in the year if and when and as they are required. So why are you not adopting our proposal? In terms of low paid workers who do not receive the fuel allowance. You are doing nothing extra for them at all. Do you not see the difficulty there in? If you're on low pay and you don't qualify for fuel allowance. If your home heating oil bill has gone up to fill the tank has gone up by 80%. What are you meant to do Taoiseach? Are they invisible to you? Why are there no measures for them? Why in terms of people who have disabilities, carers, pensioners. Why do you think the increases of just a few weeks extension of fuel allowance is sufficient? It doesn't make a dent. You had a pretty huge amount of arrears before this crisis began. You already had 320,000 households in arrears. So why aren't you taking the targeted measures you need to support them? Could I just first of all say to the Deputy that the working family payment was generally designed with low income workers in mind. They are now included in the fuel allowance. Which I think is a very significant targeted measure by the government. And the correct one. And it's a framework that exists already. This package is about 250 million. So I'm not sure what you're saying you'd take out. And I'm not clear on your costings. And I'd need to get it costed properly by social protection and by others in respect of that. But we have an alternative suite of measures that cost about 250. In the United Kingdom it's 53 million. 53. And I'd say go around the European capitals. You will not see a packet as big as this one Deputy. And as I said to you earlier, we have to think ahead in terms of potentially other challenges that will come our way in respect of this crisis. It's now only March. It's now only March. And I think we do need to be cautious. Notwithstanding the pressures that are on people. And that will manifest themselves in other parts of the economy as well if this continues. Thank you.