Taoiseach: Cost of living rise 'a global phenomenon'

Micheál Martin has defended a planned increase in carbon tax

Micheál Martin: Rising energy prices 'has very little to do with carbon tax'. Picture: Gareth Chaney/Collins Photos

The Taoiseach has strongly defended a planned increase in carbon taxes, claiming the levy has very little to do with the rising cost of living.

Micheál Martin has accused members of the opposition of being "dishonest" in suggesting carbon taxes are a key factor in the recent jump in fuel and energy bills.

Mr Martin told the Dáil that a "range of measures" are under consideration that go over and above what was announced in the budget and these will particularly target those on low incomes.

Responding to Sinn Féin president Mary Lou McDonald, who called on the Government to not proceed with the carbon tax hike in May, especially when people are struggling to afford a fill of home heating oil, Mr Martin said this time last year a barrel of oil on the international markets traded at $61, today it is at $91 a barrel.

"That was not caused by carbon tax," Mr Martin told the Dáil. "It is a global phenomenon. Let us not try to misrepresent the issue for the public out there who are watching. 

"The cost of a litre of petrol has risen by 28% over the same period. Gas prices on international markets have nearly quadrupled over the past year. The average annual gas bill has risen by €700. The vast majority of that has very little to do with carbon tax." 

'Help' for struggling families

He said the carbon tax will be used to help struggling families through schemes and supports.

"In terms of better environmental farming practices, it will go to farmers, particularly low-income farmers. It will go to people in terms of retrofitting their houses so that they are more efficient energy-wise and ultimately reduce costs. It will also go towards fuel poverty," Mr Martin told the Dáil.

However, Ms McDonald accused the Government of adopting a strategy of "delay, dithering, and lack of clarity" at a time when people need immediate action to address inflation.

"Hiking carbon taxes is the wrong call at the wrong time," she said.

"Carbon tax hikes add to the cost of everything, particularly food, due to increased transport costs. Farmers have been telling the Government this for a long time but it has not listened."

Labour TD Ged Nash hit out at what he described as a "poverty of imagination" in the Government, which he said is "baffling".

"So far, the only tangible practical proposal from the Government has been a tokenistic €113 off the payment for electricity bills. That may be increased, of course — we do not know yet — but it is a drop in the ocean compared to the rising costs that people face," he told the Dáil.

He called on the Government to roll out a mini-budget to increase social welfare supports and lower taxes.