Private Members’ Motion – Energy and Fuel Costs - Opening Speech by An Tánaiste and Minister for Finance, Simon Harris TD

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Ceann Comhairle,

I welcome the opportunity to address this House on an issue that is weighing heavily on households, businesses, and indeed families, right across our country.

That is, of course, the rising cost of energy and fuel prices — driven, as we all know, by the global uncertainty caused by the ongoing conflict in the Middle East.

Let me say at the outset:  The priority in all our commentary and all our interventions should be to seek immediate de-escalation. 

De-escalation for humanitarian needs but also because de-escalation would lead to the greatest level of economic certainty.  

While de-escalation is the priority of all EU member states, the Irish Government is preparing for a variety of economic scenarios.  

This Government understands the pressures families and businesses are under. 

They are feeling it at the pumps – where the cost of filling a car has risen considerably in the space of a just over a fortnight.  

And they are seeing it in the cost of a fill of oil. 

Successive governments that I have had the privilege of serving in have responded to global crises.  

Whether that was during times of pandemic or after Russia’s brutal invasion of Ukraine.  

Today, as you would expect, I have spoken further with the Taoiseach. 

I have also engaged with relevant Ministers and have had further briefings with my own economic team in the Department of Finance. 

And this evening, I want to confirm to this House that we are now finalising what we believe to be an appropriate intervention, for the areas in which is there is most acute pressure and challenge.  

The Government’s response will be agreed at the next Cabinet meeting.  

I also want to say this, Ceann Comhairle. 

Considering the level of significant international volatility, I strongly believe that any intervention, should in the first instance, be for a short period of time.  

This would fulfil two objectives:

1. Firstly, to enable the assistance to be applied quickly. 
2. Secondly, to provide the Government with the time and space to adapt our response, should that be required. 

I don’t believe there is anyone in this House who can speak with great certainty about where the conflict in the Middle East will go and the true scale of the medium term consequences of the conflict. 

Since the outbreak of this conflict, I have been engaging extensively with my EU counterparts.  

What is clear from all my conversations is the need to avoid knee-jerk responses and instead focus on informed sensible measures.  

Ceann Comhairle, it’s important to remind the House tonight that the Government has already taken a number of actions on energy, the benefits of which are already in place. 

We’ve extended the lower 9 per cent VAT rate on gas and electricity until the end of the decade. 

We’ve increased the weekly fuel allowance. 

And last week, we expanded eligibility to 50,000 more homes who will now receive the fuel allowance for the first time with the payment backdated to 1st January.  

This means a back payment of €380 that is already in people’s pockets.  

These are practical supports designed to ease pressure and provide certainty in very uncertain times. 

Ceann Comhairle, 

This crisis also reminds us of something deeper. 

Ireland and the European Union remain exposed to fossil fuel price shocks. 

As long as we rely on imported fossil fuels, events far beyond our shores will continue to impact in a real way on households and businesses. 

That is not a sustainable position. 

And it is not a secure one. 

The only lasting answer is to reduce that dependence. 

That means accelerating our transition to renewable energy, improving efficiency, and building a system that is more resilient and more within our own control. 

This is about stability. 

It is about security. 

And it is about protecting people from future shocks like the one we are experiencing today. 

Let me address this point clearly. 

Carbon tax is not the cause of the current spike in energy prices. 

The evidence shows that what we are seeing now is overwhelmingly driven by global events. 

And stepping away from our long-term approach would not shield households from those global forces. 

What it would do, however, is delay the transition that ultimately gives us greater control over our energy future. 

When people adopt a simplistic approach to this issue, they are forgetting the 58,000 households that benefitted from home energy upgrades last year alone. 

Ceann Comhairle, the Government will act at this moment of great uncertainty.  

We will act — but we will act responsibly. 

We are also clear that fairness must be at the centre of this response. 

Where there is evidence of unfair pricing or behaviour not in line with consumer line, it will be investigated, and it will be acted upon. 

This Oireachtas should be willing to strengthen laws in this area – certainly the Government is.  

People need to have confidence that they are being treated fairly — especially at a time like this. 

Before I conclude, it would be remiss of me not to recognise our Defence Forces and Diplomatic Corps working in the region for the protection of Irish and indeed Lebanese citizens alike.  

At a time of such conflict and turmoil, the women and men of Óglaigh na hÉireann truly are carrying out the world’s most important work: That’s the work of peace. 

Conclusion 

In closing, I want to assure this House that this Government will act.  

We will act in a manner that is fair, responsible and we will conclude our proposals in the coming days 

While we are living in times of great uncertainty, the Irish economy is resilient and we are approaching this moment from a position of relative strength.  

With more people in work than ever before, with buoyant public and private sector investment into our country. 

With real incomes continue to rise.  

And a medium-term fiscal plan that will safeguard our economic future and that of our people.  

We know this is a difficult time. 

We know the pressure that families and businesses are under. 

And we are, and will, continue to support them. 

Go raibh maith agaibh.

ENDS