A MEETING ON how the Government can deal with the rising costs of living will be held on Monday between the three party leaders, Public Expenditure Minister Michael McGrath and Finance Minister Paschal Donohoe.

Tánaiste Leo Varadkar has today played down hopes for another major Government intervention.

He said the meeting next week will consider further action to deal with rising inflation and offset the planned increase in carbon tax, such moves will not amount to a “big bazooka measure”.

The Government has already attempted to mitigate the impact of inflation with a range of announcements, including a cut to excise duty on fuel and providing households with a €200 energy rebate.

Varadkar confirmed that Government will bring forward new measures and “nothing is off the table”.

While he declined to provide details on what exact proposals are being considered, it is understood mandated time-of-use pricing will be rolled out, as well as scrapping of the PSO on energy bills which will cut around €60 off bills each year. 

Speaking in Helsinki, the Taoiseach warned that there cannot be a “week to week” responses to the crisis.

“I think we have to stand back and look at this with a medium timeframe, to do the right thing, not to chase inflation and get the wrong results. The critical issue is how do we protect people from the worst impacts of the cost of living increases,” he said.

“I think we have to do that in a way that does not make it worse in terms of inflationary pressures. The meeting on Monday will be with a view to scoping out what is the better response here. And that means bringing in the social partners in my view.

He also confirmed that he will be asking the National Economic and Social Council to prepare a position paper for the Government in terms of what’s the most effective way to respond to this “unique set of circumstances coming out of a pandemic, which created its own inflationary cycle, then a war and on top of that”.

“We want to have these meetings first, to scope this and then come back,” he said. Government sources have said additional measures are due to be announced after Wednesday’s Cabinet meeting, but that it would also be contingent on what comes of Monday’s meeting.

Speaking in the Dublin suburb of Inchicore, Varadkar said the Government will “treat the symptoms” of the cost-of-living crisis.

“That means helping people to pay those increased bills,” he said. “But ultimately what we need is an anti-inflation strategy that’s about bringing down the cost of living, not just chasing the cost of living upwards.”

He said the Government recognises that rising costs are “really impacting on people’s standard of living and household budget”.

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He added: “We want to take some additional actions, but in particular, what we decided we want to do is offset the increase in carbon tax that happens on May 1.”

The jump in carbon tax has proved controversial, with Sinn Fein urging the Government to postpone the planned measure.

Varadkar admitted the carbon tax will prove expensive for some people.

He added: “We want to do something to offset that but that’ll be the intention. Now, it’s not going to be another big bazooka measure. We’re not in that position at the moment.

“We don’t want to get into the situation whereby we’re borrowing money to help people reduce their bills, because ultimately, in the long run, that’s just a con.”

With reporting by Press Association