Varadkar: No ‘big bazooka measure’ on cost of living or carbon tax offset
Government leaders will meet on Monday to discuss measures to offset upcoming carbon tax increases, but there will be no "big bazooka", the Tánaiste has warned.
Speaking in Dublin on Friday morning, Leo Varadkar sought to temper expectations about what measures the public can expect when the three party leaders meet with Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath.
Opposition politicians have pressed the Government to do more to tackle rising prices, but Mr Varadkar indicated that there will be nothing akin to the €200 energy credit in next week's package.
He said that the public would like to see other costs such as healthcare or childcare brought down, but said that those who are most vulnerable to rising prices did need assistance.
However, he declined to offer specifics of what may be done.
“There are a lot of costs that the Government can influence that we could help people with that might make more sense in doing, and be more sustainable longer term, than responding to energy prices going up and down,” Mr Varadkar said.
“That means helping people to pay those increased bills.”
"Ultimately what we need is an anti-inflation strategy that’s about bringing down the cost of living, not just chasing the cost of living upwards."
Rising prices and the rising cost of energy, in particular, is "really impacting on people’s standard of living and household budget”, he added.
“We want to take some additional actions, but in particular, what we decided we want to do is offset the increase in carbon tax that happens on May 1.
“We want to do something to offset that, but that’ll be the intention. Now, it’s not going to be another big bazooka measure. We’re not in that position at the moment.
“We don’t want to get into the situation whereby we’re borrowing money to help people reduce their bills, because ultimately, in the long run, that’s just a con.”
The Tánaiste said, however, that "nothing is off the table" in the Government's response.
"Nothing's off the table because the cost of living is rising very fast," Mr Varadkar added.
"For the first time in a very long time, a lot of people in the country are seeing a real reduction in their living standards because their pay or their pensions are not going up as fast as the cost of living is going up.
“And I think where Government can protect the standard of living — we can't always do it — but where the government can protect people's standard of living. the government should, and that's what we've done to date."
Speaking on Thursday, Mr Varadkar said the Government had an engagement with the European Commission on reducing VAT and says it’s not possible as Ireland already has a discretionary VAT rate.
He said Ireland had one of the lowest rates of VAT on energy in Europe.
“We're already down to the lowest possible in terms of excise and petrol and diesel.
He said it “would not be possible, it's not lawful, not legal,” to reduce VAT further, as suggested by Sinn Féin’s Pearse Doherty.
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