EU sanctions on Russia will hit Ireland economically - Micheál Martin
Micheál Martin said the war in Ukraine will slow growth at an EU level and with our trading partners. Picture: BULENT KILIC/AFP via Getty Images
Taoiseach Micheál Martin has said EU sanctions on Russia will hit Ireland economically on energy, food and commodities.
It comes as the Tánaiste said the Government cannot mitigate in full the rising cost of living.
Speaking at the private Fianna Fàil parliamentary party meeting, Mr Martin said the war in Ukraine will slow growth at an EU level and with our trading partners.
"The economy has bounced back with 2.5m plus in employment but the war will put expenditure pressures on many areas," he said.
Mr Martin said Ireland is engaging at EU level for flexibility on the energy directive.
"We have allocated nearly €2 billion to alleviate the pressures on people We are focused on security of energy supply before we head into the winter," he said.
The EU Commission are likely to return with hard proposals on energy by the end of April, he said.
As a country, Mr Martin said we have a fundamental objective to reduce our dependency on fossil fuels.
"In the short term we must take steps to ensure supply and for the medium term we must double down on renewables. We are advancing wind energy proposals to accelerate this transition," he added.
Mr Martin told the meeting that the Irish people want the Government to continue with a strong humanitarian approach in our collective response to Ukraine.
"We are focusing on ensuring a whole of government response," he said.
He said the country must target our support on sectors and families who are most under pressure.
Meanwhile, Leo Varadkar has said the Government cannot mitigate in full the rising cost of living and all it can do is “ease the pain".
Responding to the latest hike in electricity prices by Electric Ireland, Mr Varadkar said the drivers of the increases are largely outside of the control of the government.
"Unfortunately it’s something that is largely outside of the control of Government and the price of gas and therefore the price of electricity - which is generated from gas - is determined by the cost of gas on the international market,” he told on Newstalk.
“And that has quadrupled actually. So the crumb of comfort - if there is any - is that prices aren’t quadrupling.
Electric Ireland announced plans to increase energy prices by almost 25%, adding an average of €300 to the annual bill of an electricity customer and €200 for gas customers.
More than 30 price hikes were announced by energy providers since the start of last year, including increases by Bord Gáis and Energia in recent weeks. Electric Ireland is the country's biggest provider with this increase set to to affect 1.2 million customers.
Mr Varadkar defended the government's response to the increases.
“So there’s the €200 that’s coming off your electricity bill, there’s the €125 for the poorest families and households receiving the fuel allowance, there’s the increase in the fuel allowance as well and there’s the 20 cents that we’ve taken off petrol and the 15 cents that we’ve taken off diesel," Mr Varadkar added.
He said that compared to other countries, that’s a pretty big response.
"But all we can do is ease the pain," he said.
Minister for Public Expenditure Michael McGrath briefed the cabinet that for every 10,000 Ukrainians who come to Ireland, it will cost taxpayers between €400m and €500m to support them.
Mr Varadkar sought to reject the idea that the arrival of refugees had stopped the Government spending more on the cost of living crisis.
"I wouldn’t like anyone to get into the space of suggesting that because we’re accommodating and caring for people who’ve been bombed out of their homes that somehow that’s why people have to pay for higher energy prices,” he said.
“They [the Ukrainians] are not to blame.”
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