Opposition criticises Irish government’s energy supports as ‘simply not enough’

The Irish government’s package of energy supports has been criticised as “simply not enough” by opposition politicians.

The Coalition signed off on a temporary excise duty reduction for motor fuels, expansion of the diesel rebate scheme for hauliers and bus operators, and an extension of the fuel allowance in response to rising fuel prices in the wake of the war in the Gulf.

Various changes combined should result in an effective reduction of 22 cent for diesel and 17 cent for petrol – with the Government expecting this to be reflected at the pumps within hours.

The fuel allowance will be extended until May, meaning 470,000 households will receive the weekly payment of 38 euro for an extra four weeks.

The cost of fuel and home heating oil has spiked in Ireland since the US and Israel bombed Iran; Ireland’s consumer watchdog is examining reports of price gouging and is due to produce a report for the government in two weeks.

Ms McDonald told the Dail parliament that after “relentless pressure” from Sinn Fein – prompting laughs from the government benches – “limited” measures to skyrocketing prices had been announced.

“When households needed a government of action, they got your do-nothing government,” Ms McDonald said.

“Clearly, Taoiseach, your plan was to ride this one out.

“Your package today had to be dragged out of you and still you come to the table with half measures.”

She said the reductions in motor fuel “don’t go far enough”, the fuel allowance extension was “paltry”, and the “standout failure” was for the 750,000 households that rely on home heating oil.

“A measly cut of two cent a litre is an insult – it amounts only to a 20 euro reduction on a fill that now costs around 1,700 euros; a drop in the tank,” she said.

“You could have, and should, completely remove excise on home heating oil that would provide these households with the meaningful relief. But instead, you choose to leave them high and dry.”

Taoiseach Micheal Martin said the oil supply shock was a “sobering and significant reality” and said the Irish government has “no intention of being reckless” amid the crisis.

“Every government is limited in terms of what it can do in situations like this.

“All of the international advice from the ECB, IMF and so on, is to target, temporary, affordable measures, because we don’t quite know what’s around the corner.”

He added: “You believe in really allocating about 2-3 billion euro right now.

“What do we do in October? What do we do in December, if the consequences of this crisis continue?”

He then said it was “probably one of the more generous packages being developed across Europe” and then compared it to the energy supports offered in Northern Ireland.

Mr Martin blamed the finance and economy ministers in Stormont, Sinn Fein’s John O’Dowd and Caoimhe Archibald, for the supports offered in the region, which were announced by British Prime Minister Sir Keir Starmer last week.

“I don’t know what instructions you’ve given to your own ministers in Northern Ireland,” he said to Ms McDonald.

“I think a total of £30 is the only benefit to upcoming bills, you can’t decide where an additional £17 million that is available is to go.

“So you’ve two ministers in charge of this brief in Northern Ireland and I would just ask you compare their performance to what we’re doing here.

“It’s no comparison and poor enough leadership from your party who are in charge of that operation.”

Labour leader Ivana Bacik said that the package of supports was “simply not enough” and “too little and very late”.

Mr Martin became exercised when the discussion of an energy storage facility arose.

“It’s rubbish to suggest we shouldn’t put in an LNG facility in this country, absolutely nonsense.

“If anything happened to gas connectors in this country with the United Kingdom, this economy wouldn’t survive beyond 10 days. That’s the reality. That’s the advice we’ve received from an energy security (body).”

Social Democrats leader Cian O’Callaghan said that there was “almost nothing” in the measures announced on Tuesday for low-income households reliant on home heating oil.

“Your government, having spent weeks and weeks reviewing situation, has come in today, and is doing the bare minimum,” he said.

He said a targeted 400 euro payment should be announced for 800,000 low-income households and would cover people who are not in receipt of the Fuel Allowance and “would provide a much greater level of support for pensioners, carers and disabled people”.

“You’re government hasn’t even bothered examining this proposal,” he said.