McDonald says Government 'not accepting reality' of inflation

Mary Lou McDonald said families are at serious risk from ever-rising fuel and food prices.

Sinn Féin President Mary Lou McDonald has said it is deeply disappointing that the Government is ruling out any further measures to ease the cost of living pressures before October’s Budget.

Speaking at Leaders’ Questions, she said families are at serious risk from ever-rising fuel and food prices, while repeating her calls on Government to urgently cut VAT rates on fuel for three months and she urged an immediate cut in excise duty on heating oil.

She said families had trouble “keeping their heads above water” with inflation now reported by the ESRI as being at their highest level since 1984.

“It is simply unreal and not accepting of the reality of the soaring inflation crisis to suggest the Government will sit this out for the next number of weeks and months. That is not dealing with the reality,” she said.

Replying for the Government, Public Expenditure Minister Michael McGrath said the Government has demonstrated that it is “agile and responsive” to the pain being felt by families.

But he said he has to be honest with people in saying that the Government cannot fully insulate the public from the full economic fallout of the war.

Mr McGrath said discussions were ongoing with the EU Commission about cutting VAT rates on fuel.

While tax issues are a matter for member governments, Ireland and the others are signed to a VAT pact which limits the scope for temporary reductions.