Government accused of ‘kicking can down the road’ over rising energy costs

By Cate McCurry, Press Association

The Government has been accused of “kicking the can down the road” on easing rising energy costs, after the Dáil voted through plans to extend existing excise cuts on fuel.

The excise cuts on petrol and diesel will now remain in place until the end of October, after a Government motion to extend the reductions was passed.

The Dáil was recalled early from the summer break on Friday to debate the measures.

Opposition parties criticised the Government for allowing just an hour-long debate on the cost-of-living crisis, and put forward objections to the schedule.

However, the debate went ahead, with Tánaiste Simon Harris saying that the Government has a responsibility to “level with the people”.

He added that the measures will give people “breathing space”.

Cabinet held an incorporeal meeting on Thursday where it was agreed that increases in fuel excise that were due to take effect on September 1 will not go ahead.

It would have added 10c and 9c to a litre of diesel and petrol respectively.

On Friday Sinn Féin leader Mary Lou McDonald said the Dáil was recalled because the Government “got it wrong”.

“Fianna Fáil, Fine Gael and the Independents intended to increase petrol and diesel prices from September.

“We said no and wrote to the Taoiseach asking that the Dáil be recalled to stop those increases,” she said on Friday.

“It’s clear you still haven’t gotten the message because your answer isn’t to halt fuel tax increases but simply to reschedule them.

“You propose increases from November and to continue those increases through to February.

“People need to know definitively that while fuel prices soar, Government will not pile on further tax increases when people are struggling. Not now, not in November, not at any stage.

“What you bring today is not a solution, it’s kicking the can down the road. It’s postponing the pain, not removing it.”

Harris said the decision will provide certainty for September and October.

“It provides breathing space for families and for businesses and ensures that rather than facing a cliff-edge, any restoration of these measures can be measured carefully and responsibly,” he added.

“The estimated cost of to the exchequer from September 1 until the final restoration on the 28th of February 2027 is approximately 407 million euro.

“This is a significant intervention.”

A crisis happens. Pressure builds. People protest and eventually the Government scrambles to put together an emergency response

Social Democrats leader Holly Cairns accused the Government of being “permanently stuck in reaction mode”.

“A crisis happens. Pressure builds. People protest and eventually the Government scrambles to put together an emergency response,” the Cork TD said.

“This is not a cost-of-living strategy. It is a desperate approach from a Government with no vision and no ambition.

“Extending the fuel supports will help but it will not help enough.”

Labour leader Ivana Bacik said the recall was “inevitable”.

“We all know why we are here, because Government parties, Fianna Fáil, Fine Gael and the so-called Independents feared the return of mass protests this week,” she said.

What people need is certainty, is security, is stability. It's something that could easily be provided. We have been calling for price controls for years and years. That is what is necessary

“It was hard to see how your Government could have allowed the first phase of these cuts to end in the same week that schools return and commuter traffic ramps up.

“Let’s be clear, the decision to delay the restoration of cuts in no way makes up for your failure to protect PAYE workers from the cost-of-living crisis.”

People Before Profit-Solidarity TD Paul Murphy said: “There’s one lesson for me from today’s farce, and it’s that the Government is scared of the people.

“The only reason we are here today is because the Government is scared of widespread protests about the cost-of-living crisis.

“In response we have a two-month stay of execution for petrol and diesel alone. Completely inadequate.

“What people need is certainty, is security, is stability. It’s something that could easily be provided.

“We have been calling for price controls for years and years. That is what is necessary.”