Christopher O'Sullivan: Government Defends Record Energy Supports

Go raibh maith agat, Ciann Comhairle, and I move the Government's counter-motion. I speak today on behalf of the Government on this wide-ranging motion regarding the cost of living. Just to reiterate, the Government proposes to oppose this motion and put forward our own counter-motion. The proposed counter-motion outlines and affirms that energy affordability is a priority of this Government and highlights the significant supports that have been provided by Government to help households and businesses with the cost of fuel and energy, including the introduction of one of the most comprehensive support packages in the EU. The conflicts in the Middle East and in Ukraine have caused significant disruption to global energy markets. The Government is also very aware and concerned about the pressures placed on households and businesses by high energy costs that are rising due to the conflict. Providing supports to alleviate this pressure has and will continue to be a priority. We have taken action to help households and businesses with the cost of fuel and energy, such as the expanded fuel loans, tax reductions on energy, and significantly expanded retrofitting programmes. On 12 April, the Government agreed a €500 million package of fuel supports. This is in addition to the initial €250 million in targeted supports announced in March. These packages are among the largest per capita interventions in any EU Member State. Key measures introduced include a reduction in excise on petrol, diesel and marked gas oil. When taken with a reduction in the NORA levy, that means a 32 cent off a litre of diesel, 27 cent off a litre of petrol and 7.4 cent off MGO. A deferral of the planned increase in carbon tax scheduled for 1 May until the Budget. An increase in the maximum repayment amount available under the diesel rebate scheme for qualifying road haulage and bus transport operators from 5.7 cent to 12 cent per litre for Q1-Q2 2026. We have also developed a new €120 million road transporter support scheme, as well as supports for coach operators providing local link services. A €100 million fuel subsidy support scheme for farmers, agricultural contractors and fishermen have also been opened. The measures were introduced on a temporary basis to provide some relief from fuel price inflation. As stated at the time of interventions in March and April, government reserves a right to review and alter the policy approach as necessary. Accordingly, government has continued to actively monitor all relevant strands of information, including global energy market dynamics and domestic retail pricing trends. Following this review, government announced an updated approach on 30 June 2026. This approach is informed by the fact that there have been very significant reductions in crude oil prices, as well as retail fuel prices over recent weeks. It is therefore appropriate to begin the process of reversing the temporary reductions in mineral oil tax. It is important to emphasise that there will be no cliff edge effects for consumers. Rather, the restoration of pre-March 2025 mineral oil tax rates will be done in a gradual and phased way. The motion before us today also calls for an end to increasing carbon tax. However, as deputies will be aware, the carbon tax is a core part of Ireland's climate policy and our aim to reach net zero by 2050. The need for society and the economy to decouple from fossil fuel dependence is even more apparent now, given the volatility of international fuel markets. The best way of insulating our economy and society from fuel price shocks is to reduce our dependence on fossil fuels. Carbon tax funds are allocated for expenditure and measures which will achieve this. The continuation of a national retrofitting programme, investment in community energy efficiency measures and funding the greener farming practices. The benefit of carbon tax is obvious. 2026 sees a record capital budget of €640 million, including €558 million from carbon tax receipts allocated to the SAI residential and community energy grant schemes. This allocation will support 73,000 home energy upgrades to make homes warmer, healthier and more comfortable with lower emissions and lower bills. The allocation also includes a record €350 million for the Warmer Home Scheme, which provides fully funded upgrades for those in energy poverty and is targeting 11,500 upgrades this year. 53% of the allocation for SAI residential and community schemes in 2026 is for the Warmer Home Scheme. It is important to note that the fuel supports announced this year build on a suite of measures to assist households with the cost of living pressures announced as part of Budget 2026. €28.9 million will be spent on social protection in 2026, including over 1.15 billion of new measures targeted to assist households. The measures contained in the budget are designed to support the most vulnerable in our society with the cost of living and there is a particular focus on tackling child poverty. The package includes the largest child support payment increase in the history of the state, with a weekly increase of €16 to €78 for children aged 12 and over a 26% increase, with a weekly increase of €8 to €58 for children under 12 years. A 16% increase. This brings the total annual value of the child support payment to €3,016 for each child under the age of 12 and €4,056 for each child over 12. Record increases were announced in respect of the carers allowance income disregard, with an increase of €375 to €1,000 for a single person and an increase of €750 to €2,000 for a couple. The income limit for carers benefit will also increase to €375 to €1,000 per week. This change will take effect from July 2026. Also included in the budget package was across the board increases of €10 per week to maximum personal payment rates, benefiting people such as pensioners, people with disabilities, carers and lone parents, with proportionate increases for people receiving a reduced payment rate and qualified adults. These changes took effect from January. The budget package also provided significant support to help householders with the cost of heating and other energy bills. The fuel allowance increased by €5 to €38 per week, and for the first time, families receiving the working family payment now qualify for the fuel allowance. In addition, people moving from disability loans or the blind pension to take up work will retain their fuel allowance for five years. The budget also included an extension of the 9% VAT rate that applies to gas and electricity. The wide array of measures clearly demonstrates the huge focus that government has placed on assisting ordinary people with families and the cost of living. In addition to the wide-ranging support already provided by government, we recognise that more needs to be done to help households and businesses that are under pressure as a result of increasing energy prices. The Cross-Governmental National Energy Affordable Task Force, or NEAT, will play a key role in that regard. The National Energy Affordable Task Force is preparing an energy affordability action plan, as well as coordinating national response to the energy shock arising from conflict in the Middle East. This structure will ensure coordinated and coherent response to the energy crisis that is aligned with the Programme for Government Commitments and longer-term action on energy affordability. The report of the task force, which includes measures for consideration in Budget 2026, including those I mentioned earlier, was published last November. The task force is now working intensively on the preparation of an energy affordability action plan, which will be completed in Q3 of 2026. The action plan will examine cost drivers in the energy sector and identify short-, medium- and long-term measures to enhance affordability of energy for households and businesses. The action plan will be built on four key pillars – addressing the price, sustainable demand and enhancing flexibility, addressing energy poverty and customer protections, and energy affordability for businesses. Intensive work on the action plan by NEAT subgroups, for example those on energy demand and grid financing, assisted by external advisory support, will continue over the coming weeks. This work will be supported by a process of engagement with relevant stakeholders. This will ensure that EAP priorities are shaped by public and stakeholder input and remain responsive, inclusive and grounded in lived experience. A targeted stakeholder consultation has taken place on tackling energy poverty. This allows, from a recent meeting with representatives from the Community and Voluntary Pillar, such as Age Action Ireland and the Women's Council, and the Environmental Pillar, in respect of their proposals on energy poverty. Consultation sessions with business groups and with business groups at the Electricity Association of Ireland and retail electricity suppliers have also been held. In addition, Minister O'Brien has engaged with the four biggest energy retails in recent months to ensure that hardship funds and focus measures are in place for any customers in difficulty. It is important to note that the Department of Social Protection can also provide support through the Additional Needs Payment to help households meet expenses, including those who face difficulty with fuel bills. To conclude, the government has introduced substantial supports during this volatile period, and they are timely and necessary, and we will continue to monitor the situation closely. If I could just add a bit further in the minute that I have remaining, because very little was alluded to this in the initial contributions from the opposition. The key, most fundamental way that we can reduce energy prices for the people of Ireland is ramping up renewable energy. It's as simple as this. The higher proportion of our energy needs, our fuel needs, that are met by fossil fuels, then the higher our prices will be. It's simple maths. Our fuel and the cost of electricity, the cost of energy, is directly linked and tied to the cost of a barrel of crude oil. So we have to step away from that. We have to ramp up solar. We have to ramp up wind. But we can only do that if people get behind it. And the very same TDs that are contributing and are criticising government for energy prices are the same TDs who will object to renewables, object to solar, and object to alternative forms of energy. It's absolutely a fact. You would prefer to lead us down a path that we cannot come back from and toy us into fossil fuels forever, which is only going to continue to lead to increased energy prices. Thank you. Thank you.