Paul Lawless: Government 'gouging' on energy and carbon tax
Paul Lawless challenges the government over rising living costs, arguing that policy choices-especially on carbon tax and support for data centres-are driving higher prices. He accuses the government of collecting record carbon tax revenues while leaving climate funds unspent and families waiting for grants.
Paul Lawless sets out a series of statistics about the cost of living in Ireland, saying prices are significantly higher than the EU average. He highlights sharp increases in energy and diesel since 2021, widespread household arrears, and what he describes as government-driven cost increases through taxation, including carbon tax and the NORA levy.
Lawless disputes the government narrative on renewables and capacity, claiming much new capacity flows to data centres and questioning the link between increased renewables and rising energy costs. He points to 1.1 billion euros collected in carbon tax last year and warns the state is on track to raise yet more, while substantial carbon-tax revenue between 2020 and 2023 went unspent.
Lawless highlights families approved for SEAI grants waiting years for work because of labour constraints, arguing that bottlenecks undermine retrofit programmes and housing development. He also notes the Climate Action Fund has shown a surplus and that the government’s announced support packages used hypothetical figures rather than genuine income forgone.
Lawless calls on the minister to own responsibility for the outcomes he attributes to government policy-rising costs, arrears, and perceived misdirection of climate funds. He frames his remarks as a demand for transparency about taxation, spending and the real effects of the Climate Action Bill and related levies.
Main allegations and figures
Paul Lawless sets out a series of statistics about the cost of living in Ireland, saying prices are significantly higher than the EU average. He highlights sharp increases in energy and diesel since 2021, widespread household arrears, and what he describes as government-driven cost increases through taxation, including carbon tax and the NORA levy.
Policy critique on carbon tax and spending
Lawless disputes the government narrative on renewables and capacity, claiming much new capacity flows to data centres and questioning the link between increased renewables and rising energy costs. He points to 1.1 billion euros collected in carbon tax last year and warns the state is on track to raise yet more, while substantial carbon-tax revenue between 2020 and 2023 went unspent.
Impact on households and climate measures
Lawless highlights families approved for SEAI grants waiting years for work because of labour constraints, arguing that bottlenecks undermine retrofit programmes and housing development. He also notes the Climate Action Fund has shown a surplus and that the government’s announced support packages used hypothetical figures rather than genuine income forgone.
Political consequences and accountability
Lawless calls on the minister to own responsibility for the outcomes he attributes to government policy-rising costs, arrears, and perceived misdirection of climate funds. He frames his remarks as a demand for transparency about taxation, spending and the real effects of the Climate Action Bill and related levies.
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Transcript
First of all, I want to thank my colleagues in Aontu for their work in regards to this motion and indeed thank the deputies for their contributions today. And the fact is, Minister, that the point you raised a few moments ago is actually untrue. If this government has a policy of increasing data centres, and for every new wind development or solar development, the vast majority of that additional capacity is actually going into data centres. So let's not mislead the house here, Minister. I think that is really important that we say that from the outset. And the truth is, Ireland is an outlier in terms of cost, an outlier in terms of the cost of living that is happening in the country at the moment. We are the most expensive country in Europe for housing, for health, for energy and alcohol. Are you going to blame the opposition for the disaster of health, housing, the cost of housing? You have presided over this and it's time now that you own this, Minister. Overall prices are 36% higher in Ireland than the rest of the European Union. Health costs are about 85% higher in Ireland than they are elsewhere in the European Union. A third of households, Minister, went into arrears last year in the last 12 months. A third. Over 300,000 people. And since 2021, energy is up 57%. 57%. And during that time there has been an increase of renewables. Can you explain that as well, Minister? Because that's the truth. And diesel is up 60%. And of course much of that increase is due to geopolitics and so on. But there's also the fact that the governments are gouging here in terms of taxation. The fact that taxation accounts for the vast majority of what we pay at the pump. That's the truth as well, Minister. So we are being overcharged. And a significant amount of what we are being overcharged is as a result of government policy. Government policy in terms of a policy of high cost of energy. That's what you have. In fact, built into the carbon tax is that very policy. You want to increase the cost of fuel, increase the cost of diesel and petrol, irrespective of what the cost is at the pump. That's what you've done. You voted for it. The government voted for it. Indeed, we in AN2 did not. In 2021, we did not support the Climate Action Bill because we knew what it would lead to. And in relation to carbon tax, last year the government collected 1.1 billion euros in carbon tax, the highest tax on record. This year the government is on track to take in 200 million euros more on carbon tax. That's despite the fact that there has been a reduction in terms of the increases that were due to take place. 200 million euros more. The Taoiseach has constantly outlined that we need this tax. We need it for retrofitting. We need it for climate measures. But the reality is and the numbers state between 2020 and 2023, a half a billion euros in carbon tax was unspent. A half a billion euros. And it was returned to the exchequer. So that's the truth. Meanwhile, you're continually increasing the carbon tax despite the fact that it can't be spent. And I've spoken to so many families who have applied for SAEI grants, who are actually approved for SAEI grants. But the fact is because there is such a limited constraint in terms of labour, they're waiting two, three years for that work to take place. In fact, there is a significant conversation I think we need to have in relation to the constraints it's having in terms of the labour force and the effect it's also having in terms of the development of homes in this country, Minister. With regards to the NORA levy, that is another tax on fuel and it goes into the Climate Action Fund. And since 2020, the Climate Action Fund has been in surplus by almost 300 million euros. And since the start of this crisis, the government has been misleading us all. And it's time that you were called out in relation to this. And when the package was announced, Minister, the government rolled out a package. At first it was a 500 million package and then it was a 700 million euro package. But the truth is that the cost of this wasn't cost in terms of income forgone. What you had done is it was a hypothetical figure. You have added all the additional costs that you were going to bring forward, the increases in carbon tax and you added that and then you went to the people and you said aren't we great and you wanted a clap in the back as well.