Government ‘cannot insulate’ all elements of rising energy costs

The Government cannot insulate all elements of how pricing is changing around rising energy costs, the Minister for Public Expenditure has said.

Jack Chambers said the Government will prioritise interventions to help people as part of the Budget, to be announced on October 6.

He told the Dáil on Wednesday that the Government will make “further decisions” on the pricing of energy in the Irish economy on Budget day.

It comes as Sinn Féin leader Mary Lou McDonald criticised the Government for “blocking” her party’s proposal to remove carbon tax from home heating oil in the Dáil this week.

Ms McDonald said that a report by the National Youth Council of Ireland which shows that almost seven in ten young people are considering moving abroad for a better quality of life was a “damning indictment” of Fianna Fáil and Fine Gael-led governments.

“Budget after budget, decision after decision, short-changing working people and short-changing our young people,” Ms McDonald added.

“Young people have had it with being left at the back of the queue, because our young people are smart and get it.

“They hear from you that the economy is strong and the surpluses are large, and yet they can’t get their start. And they know also that while they’re losing out, people at the very top are benefiting.

“They also need to know that things can be different. That this is where they belong. That this is their country.

“This is their home, and that things can be better. Life can be affordable in Ireland, and this has to start with the budget.”

Mr Chambers said he rejects Sinn Féin’s “constant failed State narrative”, citing a country of full employment with “continued resilience” of the economy.

“A Government that’s motivated to give young people hope when it comes to housing, when it comes to their future in terms of their employment, their wages, and that’s our central motivation as part of Budget 2027,” Mr Chambers added.

“The central objective of this government is to respond to that immediate pressure.

“That’s why we will take further decisions when it comes to the pricing of energy in our economy on Budget Day.

“It’s why we’ll respond to affordability challenges that young couples with children face when it comes to progress on childcare, for example.

“We want to ensure that the sentiment of young people is responded to in this Budget with again improved housing supply and further progress in delivery of social and affordable homes in 2027, and that’s the central motivation of government.”

On the Budget, Mr Chambers said the Government will respond to cost-of-living issues.

“But we also need to be mindful of we’re living with multiple conflicts internationally, a significant level of uncertainty in terms of the geopolitical position with the conflict in the Middle East and elsewhere,” he added.

“I think people do understand that that is impacting pricing in our economy, and that the government can insulate to some extent, but we can’t insulate all elements of how pricing is changing.

“That’s reflected not only in Ireland but also internationally.

“So we’ll prioritise interventions to help people, and that’s the focus of the next two weeks.”