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THE GOVERNMENT HAS said the scheduled increase in Carbon Tax next month will go ahead but ministers are looking at how they may “offset” the burden on households.
Speaking to reporters today, Taoiseach Micheál Martin and Tánaiste Leo Varadkar both addressed the rising cost of living, with the latter saying the inflation crisis could last “for years”.
Carbon Tax is set to increase next month from €33.50 to €41.00 per tonne of carbon. It is a charge applied to carbon-emitting fuels such as coal, peat, oil and natural gas.
Varadkar said today that the government estimates it will add about €20 to the cost of filling a tank of home heating oil and €1.50 a month on gas bills.
“€30 might not sound like a lot of money but it is a lot of money if someone doesn’t have it,” he said.
Martin had said yesterday that, in the context of other price rises, the increase in Carbon Tax has garnered an outsized amount of political debate.
Speaking today, An Taoiseach said the money raised from Carbon Tax is ring-fenced for efforts to tackle the climate emergency.
“The whole importance of the Carbon Tax is to enable us to have resources to enable people to develop energy efficiency and ultimately reduce costs of energy in their homes. So we’ve got to avoid a knee-jerk response here and we’ve got to do this in a very considered way,” he said.
An Taoiseach added that himself, Varadkar and Green Party leader Eamon Ryan met last night to discuss inflation and that they will also be meeting with Finance Minister Paschal Donohoe and Expenditure Minister Michael McGrath in the coming weeks to outline how to help insulate people from inflationary pressures.
“To create a process that will be inclusive that will cover all elements of this. Budgetary policy right through to how we respond to the immediate pressures. That’s how we see it right now,” Martin said.
Varadkar added that the Carbon Tax increase was “legislated for” and is contained in the Programme for Government but that the government understands that “even a small increase has an impact on household budgets”.
“So what we’re examining at the moment, working across government, is to see whether there are ways that we can offset that increase so that people aren’t any worse off in the round around as a result,” Varadkar said.
He added: “There are lots of reasons why you’re seeing the cost of living rise, and that’s to do with monetary policy, it’s to do with the pandemic and supply chains and it is to do with the war in Ukraine as well. And while we do need to respond to the symptoms, which is price rises, that’s not the solution.”
The Taoiseach was also questioned during Leaders’ Questions today whereby Sinn Féin leader Mary Lou McDonald said the cost of living is a big issue for the public.
She said there is no sense of urgency or agility in dealing with the crisis, adding that the carbon tax hike is coming at the wrong time.
“Your position is wrong and you need to listen. People can’t afford a carbon tax increase, they don’t have the money to give,” she said.
The Taoiseach accused Sinn Féin of “double speak” when it comes to climate action.
Martin and Varadkar are expected to come under pressure at their respective Fianna Fáil and Fine Gael parliamentary party meetings tomorrow on Carbon Tax and cost-of-living concerns.
Asked about this, Varadkar said his party may have policies that are “different to what’s in the Programme for Government” but that the programme was endorsed by the membership.
Echoing Martin’s comments from yesterday that the government “can’t take measures every single week”, Varadkar also said the government “can’t come back every few weeks with a new measure to offset a particular price increase”.
“We need to see this for what it is, which is an international crisis, an increase in inflation that’s going to be with us for years, more so than months. And then we need to respond to it in the end,” he said.
With reporting by Christina Finn
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Alot he fking knows…theyre on another planet the lot of them..whats the alternative to oil, gas or coal without extortionate expenses to fit solar or the next energy source..they’ve jumped the gun with this one and offered no incentive to switch to cleaner energy sources…and yes I know there are grants in place but its not enough…if they want to make an impression, then don’t take money off people to justify it saving the planet.. Build a proper program outlining the options for people, a cost effective solution instead of take take take.
@Craig Clancy: People simply cannot afford grants, costs to much to upgrade systems. Initial outlaw is to much,
@Craig Clancy: Grants are part of the give. Green energy such as wind is subsidised. What’s your great plan to reduce pollution without hitting people’s pockets?
@Dave Barrett: I would love to go solar or any other viable resource but as you pointed out it’s too expensive even with the grant..how much was it for all those water meters that are due to need upgrading soon? Surely they could of put that money towards a nationwide energy campaign..biggest tax take last year and still the roads are in $hite, homelessness is rampant still, hospitals over run and understaffed but yet they still suck us dry of every extra cent we try use to survive…its going to hit a boiling point soon and some one will take matters in to their own hands.
@Mickety Dee: how about stop taking more and more money off people and give them a chance to actually switch over or upgrade..they ran this way too quick and gave no viable plan for anyone, absolutely no incentive to switch over..literally said here are your options off you go now hurry before we start taking just that little squeeze more off you…how is it our fault that they’re are not other things in place…start by fixing the appalling public transport, focus more on helping people change over to solar rather than punish them for not having it, work with the people..thats the problem they are so detached from reality its frightening.
@Craig Clancy: Irish people lack back bone. Yellow vests needed.
@Craig Clancy: need to take vat off renewables!
@Aidan Conway: alot more than take the vat off.
@Dave Barrett: well anyone who protests is called an extremist or anti vaxer or a crazy person by the media, or protesting is made illegal like the truckers one in Canada. Not much the normal person can do anymore to oppose anything.
The main reason for cost of living rises is we dont have a regulator to question why everything is on the rise
Oh wait a minute we do have a regulator .
He must have fallen asleep like Eamonn and everything went up when his eyes were closed.
@Stephen Carslake: That’s not the reason for increases. Read the media of any country in the world and you’ll see that.
The Irish energy regulator does not influence prices in the US, UK, Germany, Spain, Turkey, France, Italy etc etc
Our energy regulator may make dubious calls but they are not the sole reason for the price increases.
@Lee King Buckett: they’re allowing energy companies raise standing charges, which are nothing to do with global energy supplies. The bill increases can be excused for global rises, but there’s no reason for raising standing charges other than opportunistic greed which is where the regulator should step in .. but doesn’t!
@Rob Gale: Agreed but as per the original comment that’s not ‘the main reason’ for price increases.
The main reason is a global energy crisis, the standing charge increase is gouging but not major.
@Lee King Buckett: I’m not sure about the gas suppliers, but:
ESB Networks are managing/maintaining the whole electricity infrastructure and (most/a lot of) the production.
I would guess, that’s covered with the standing charges, or at least the major chunk of it? IF they increased the charges to Energia, Airtricity, or whoever, they will only pass the charges on to the customer, I guess?
You have to laugh that the Green Party under Eamonn Ryan seemingly sacrificed all of their principles in government on areas like greyhound racing, hare coursing, neutrality, direct provision etc in exchange for this carbon tax that would ultimately become redundant through global events and fudged away from making a difference.
Brilliant stuff Green TDs, you’ve achieved nothing in government other than providing the necessary numbers for FF & FG to implement their policies. Bravo.
This is literally bizzare, as in really really bizzare, one of the main exporters of oil/gas IE Russia is all but closing its supply to Europe, causing massive price increases across the board. I am no expert here at all, but Eamonn do you think I would be paying over the odds if I had an alterative way to get said energy? There is no alteratives even remotely ready to take over. Even if I installed a 10kW solar system with battery, it still needs subbing from the grid, which is again, gas powered for the most part. Also, in saying that, I am just talking about household energy useage. I have no idea about farms, but what I do know is all that farm machinary is fuel based, what alternatives have been given to farmers, that’s just one industry. Also, yet again, moving everything to electric based is putting massive pressure on the national grid, which again is still massively gas based on the back end and is nearly keeling over with 15/20 odd data centres in the mix and Eamonn and co think this same grid is ready to handle the entire country going fully electric. Seriously, what plannet is this lad on.
@Dave.: Also, I just want to add. Seriously, when are the Irish people actually going to get up and march on the Dail, this is not right. How can it be, as one poster pointed out, fuel prices have increased so much that its has actually bettered any increase the Carbon Tax would yeild, yet goverment still continue to push for more increases. Are we really as a nation going to sit down and take this no problem?
@Dave.: Russia has not reduced gas or oil supplies to Europe at all. Ireland gets its gas from Scotland.
The war in Ukraine has resulted in speculative increases in oil but gas has reduced in price in the last 5 weeks. The causes of energy price spikes predate the war in Ukraine.
Other than that, you’re correct about the lack of alternatives and the fact that a carbon tax won’t reduce usage at all.
They will put the Tax on To Keep Ryan on Board and then give it Back some other Way What Load of Bollicks
The whole point of a carbon tax is to disincentivise (or in our case more likely to avoid EU fines). For gas and oil, the price has already risen high enough to disincentivise. Adding any more money is just making poor people poorer.
Also, how can Irish people be disincentivised to use a car when we have the worst public transport infrastructure in Western Europe? We have very few safe bike lanes (and those that we have abruptly end for no reason). Even in Dublin.
Its just a load of virtue signalling and kicking the can down the road. Like the paper straws, none of this is going to make any sort of meaningful difference. What we need is major investments in renewables, investment in our public transport and cycling infrastructure, and much more. Not a bunch of new taxes.
@Tomo: Avoid EU fines ??? This State pay the EU fines every year because they are charging the Irish motorists VRT which is outlawed by the EU .. so they know exactly what they are doing.. Instead of taxing the public Carbon Tax, they should be heavily investing in the ESB to help them build multiple wind farms…and not giving out subsidies to private companies
Where are all the FF/FG/GP middle leg huggers today? Very quiet…surely it’s hitting home to them on the failure of their parties?
Az if things were not expensive enough, soon enough a car owner wont be able to afforx to fuel a car pay for home heating.surely the government can off put this raise.
The easiest way to offset the burden of the tax is not to introduce it due to the current circumstances. But they will go on and on with all kinds of waffle just to keep the Greens on board. Personally I have lost all faith in FF and FG.
I wonder what the US multinationals are paying for electricity for all the data centers that are gobbling up loads of out electricity. I’d bet they pay seriously less that the average person. All new data centers and other non essential type IT should be paused until this is under control. Our citizens can’t afford food or electricity but we have many times redundancy in our data storage incase of a few mins outage on watching netflix. Great priorities we have in the 21st century.
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