Coalition split over winter fuel assistance
The stance appeared to put John Gormley on a collision course with Brian Lenihan, who has signalled he prefers using available funds to bolster heat efficiency in homes instead.
However, Green leader Mr Gormley was standing over his pledge that the allowance would “absolutely” rise ahead of a cabinet showdown on the issue, as Government sources made it clear an increase was not the Finance Minister’s preferred option.
The row simmered as Labour insisted money for an €80m corporate re-branding for ESB and Bord Gáis should be re-directed to lift families out of fuel poverty.
Eamon Gilmore insisted it was “daft” for the semi-state bodies to spend so much on their image when home heating oil prices had surged by 26% in a year and 2,500 homes were being cut off from electricity per month, while Bord Gáis had disconnected 4,000 households so far this year.
The Labour leader said the introduction of the Government’s carbon tax had helped send prices rising and that a promised, vouched fuel allowance scheme meant to run alongside it to help low-income families had failed to materialise.
Mr Gilmore accused the Taoiseach of “dodging” responsibility and being indifferent to the problems of families struggling to pay fuel bills as experts predicted an unusually bleak winter.
“The Taoiseach has no appreciation whatever of the kind of difficulties that people have in meeting home heating costs,” Mr Gilmore said.
The Taoiseach responded to Mr Gilmore’s charges by insisting retro-fitting homes to be more energy-efficient is the best way to deal with fuel poverty and the rebranding of ESB and Bord Gáis were matters for the energy regulator.
Brian Cowen told the Dáil heating oil prices were still lower than in mid-2008 and there had been increases in income supports in the past through free fuel schemes, though in future there needed to be a move to better energy efficiency.
The carbon tax, introduced in last December’s budget, is expected to rake in €330m a year by imposing a €15 per tonne charge on fossil fuels, including petrol, diesel, fuel oil and gas.
Fine Gael leader Enda Kenny also accused the Government of breaking promises by not setting up a loan guarantee scheme for small businesses as promised last January.
Mr Kenny accused the Government of “messing”, warning “thousands of small Irish businesses are hanging on by their fingernails”.
“There are 80,000 small businesses in the country. They employ almost 800,000 people. You cannot solve every problem but this is one you can solve. You did commit to it,” he said.
Mr Cowen said the matter needed careful consideration: “There are many supports in place from Enterprise Ireland which are assisting small business. But the working capital needs of small business are best protected and best provided for once the full recapitalisation of the banking system is in place and that’s at an advanced stage.”
