Robert Troy: Targeted, Temporary, Proportionate Response

Mr. Comhairle, thank you and the Government opposes the motion initiated by the Labour Party but nonetheless thanks them for giving the opportunity to discuss Government's management of the public finances, the supports we have put in place and the preparations already underway for Budget 2027 and I'll do so Comhairle without resulting in petty name calling of any individuals. I think nobody can honestly say what the future holds in regards to the war in the Middle East which is contributing to a deeply uncertain global picture. No Government can totally shield their country against the worst global energy crisis we have seen since the 1970s. For a small, highly open economy and importantly a net importer of energy, the situation presents a particular challenge for Ireland. Government has already taken action in a targeted and affordable way to protect households, businesses and key sectors of our economy from the recent energy price shock. Our response goes much further than many other nations around the globe, a testament to the prudent management of public finances which I'll touch on later. We may disagree on what supports we have initiated but it's simply wrong to say that nothing has been done. Our status as a net importer of energy means that movements in international energy prices are transmitted quickly into our domestic economy. Comhairle, we are acutely aware that this places real pressures on households and businesses and I would like to acknowledge the fear and frustration which was very evident around the country in recent weeks. We are responding to those concerns and we will continue to do so. That is why the Government acted in a decisive and responsible manner, providing support of over €750 million. These interventions were built on permanent target supports which were introduced as part of Budget 2026 and 2025, including the 9% fat rate for gas and electricity, increases for social welfare, higher child support payments, increases and extensions to the eligibility for fuel allowance, further roll-out of the free school meals which you acknowledge yourself Deputy Nash is a good initiative, further roll-out of the free book schemes, significant increase in housing spend, last year the highest number of social houses built since the 1970s and significant increase, a 20% increase in disability spend. So it's simply wrong to say that nothing has been done. It's important to be clear about this Government's approach. The choice we make in responding to these pressures will have longer term consequences and that is why Government has been very deliberate in its response. Our response has been targeted, temporary and proportionate. This allows us to support those most vulnerable, avoid embedding measures that add to inflation and retain capacity to respond to future challenges. Government has introduced both tax and spending measures including reducing the excess duty on diesel by a total of 32 cent per litre, on petrol by 27 cent per litre and on green diesel by 7.4 cent per litre. This means a saving of roughly 16 euro on diesel and 13.50 on petrol for motorists for an average 50 litre fill at the pumps. That's every single motorist benefiting from those interventions. We're enhancing the diesel rebate scheme, we're delaying the schedule may increase for the carbon tax until later in the year, reducing the NORA level to a nominal amount and extending the fuel allowance season, directly targeting energy costs benefiting the lowest range of cohorts, focusing on pensioners, carers that you referred to, lone parents, people with disability, long term unemployed and now for the first time extending it out to people who are in receipt of the working family payment. All direct targeted measures helping the most vulnerable in society which you fail to acknowledge. Government is also introducing a transport support scheme for haulage operators, local link providers, school transport providers and certain commercial passenger operators to a maximum of 40 million per month for a period of three months from March to May 26, providing a flat rate payment based on the number of vehicles operated. This is helping to keep food on our shelves and preventing further increases on the cost of doing your weekly shop, ensuring that children can continue to go to school on a daily basis. All direct targeted interventions. A fuel subsidy support scheme for farming and fisheries totalling 20 million per month for the five month period March to July to provide funding support equivalent to 20 cent a litre for green diesel to be paid based on usage, again supporting our primary food producers. I also want to make very clear that these measures have been put in place because the government has had sound management of our public finances in recent years and we had had the capacity to make the interventions. Many countries across the globe have had to borrow to make their interventions. There is not, as some might describe from the opposition benches, a sort of endless money tree to pick from. Our economic position of strength requires careful management, something which not all in opposition appreciate. We have our vulnerabilities in our tax base, particularly when it comes to corporation tax. This government has been effectively managing these windfalls and investing in the future of this economy through the Future Ireland Fund, the Infrastructure, Climate and Nature Fund. This allows us to plug the infrastructure gap to make our economy more competitive. The motion tabled by the opposition wants us to spend not only in the future, but also in the past, reopening tax credits and income tax spans on a retrospective basis. I want to ask, where will you forego to make this happen? Deprioritise investments? Scale back everyday services? Because those are choices you will have to make. This government is honest and it is time for the opposition to be honest too. The government was elected to maintain sound public finances and as such, inappropriate physical response would risk undermining the ability to take further action in the future as the situation evolves. Of course, it is jammy when things are going right and when things are going wrong it is the fault of the government. That is a very simplistic approach in fairness, Deputy Nash. If the economy remains strong, we will stand by the Programme for Government Commitments to make progressive changes to the personal income tax rate. We have full employment, I suppose that is jammy and luck too. From my perspective, as a Minister in the Department of Finance, this Budget should be about rewarding work. In Budget 2026, it was about supporting jobs, record investment in housing, record investment in disabilities, but we must ensure that Budget 2027 is about supporting those who are working and as such, there are significant tax measures to support those. I would like to remind the opposition and the Labour Party in particular today, the Programme for Government is a five-year programme. We have delivered one Budget in that time frame and yet still you seem somewhat disappointed that every measure that has been contained in the Programme for Government hasn't been introduced in year one at a time of huge global uncertainty. It's not about political game-playing. This preparation for Budget 2027 is already well underway. Next month, government will host a National Economic Dialogue, we will be listening to stakeholders from across society, discussing the necessary reforms and priorities for the upcoming Budget, all with a view on shaping a secure future. Government has shown that we are not afraid to act swiftly and forcefully when required, but we have always been clear that the best way to debate and manage fiscal policy is in the context of the annual Budget cycle rather than with multiple fiscal events a year. It's worth stepping back for a moment and looking at the broader economic context. The Irish economy has continued to demonstrate remarkable resilience. Our unemployment rate has remained below 5%, a level consistent with full employment for almost four years now. This strength reflects the resilience of our economy and our enterprise base. We cannot take this economic resilience for granted. In the current environment, risks remain firmly tilted to the downside and the outlet continues to be shaped by developments beyond our control. Inflation now stands at 3.6% for April. Four years ago, in 2022, that rate was over 8%. While still lower than the peak of the energy shock in 2022, Irish electricity prices are high compared to our European neighbours. We are responding to that previous shock and the one we are feeling now. It is important to acknowledge that Ireland's exposure to the energy price shock is in part a consequence to our reliance on imported fossil fuels. Reducing that reliance is an imperative. We are making significant investments in renewable energy, in grid infrastructure and rolling out supports to improve the energy efficiency of our homes and our workplaces.