Social Justice Ireland calls for €20 social welfare increase and €12.90 living wage 

Michelle Murphy, Social Justice Ireland research and policy analyst: The SJI has called on the Government to set a target of social housing stock of 20% of the overall housing number by 2030. 

This year's budget should contain a €20 core social welfare increase, refundable tax credits, and a €12.90 living wage to tackle spiralling living costs, as well as the end of aviation's exemption from environmental taxes.

Those are just some of the demands from independent think-tank Social Justice Ireland (SJI). It has also called on the Government to set a target of social housing stock of 20% of the overall housing number by 2030.

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While cost-of-living pressures and the ongoing Ukrainian invasion by Russia will be of overriding concern, the Government must be cognisant of the so-called "just transition" when making its budgetary decisions, SJI said.

Just transition is the term used to describe making sure employment opportunities and societal benefits are present for those who may live and work in communities tied to legacy energy industries, such as coal mining or peat extraction.

It also refers to keeping costs down for those affected by fuel poverty as homes move from legacy fossil fuel-powered homes to more sustainable forms of heating, such as heat pumps.

SJI research and policy analyst Michelle Murphy said aviation should pay its share of taxes that could be used in the just transition.

"Meeting our 2030 targets will be challenging and every sector must make a fair contribution," she said. 

Air travel is a significant contributor to transport emissions yet to date is not subject to carbon taxes.

Ms Murphy said SJI proposes the removal of the exemption of jet kerosene from excise and carbon taxes in Budget 2023, which she claimed would yield €634m. 

"These funds should be invested in renewable energy, upgrading the national grid, and retrofitting schemes," she said.

According to an ESRI paper last December, taxing kerosene could cut aviation's emissions by nearly 15% but would raise air fares for passengers.

According to an ESRI paper last December, taxing kerosene could cut aviation's emissions by nearly 15% but would raise air fares for passengers.

The European Commission proposed a minimum tax rate across the EU last year for the likes of kerosene to reduce CO2 emissions by 55% by 2030. 

"Government should begin the process of ending fossil fuel subsidies and environmentally harmful tax expenditures in Budget 2023. These not-insignificant resources — €2.2bn in revenue foregone in 2020 — should be diverted to renewable energy programmes, reforming and expanding the fuel allowance, incentivising sustainable agricultural methods, and additional investment in just transition programmes," Ms Murphy said.