Ryan will not rule out windfall tax on energy companies

Environment Minister Eamon Ryan said he could 'not rule out any other measures' after companies posted what Labour TD Ged Nash called 'hyper-normal profits'. Picture: Brian Lawless

The Minister for the Environment has told the Dáil he has not ruled out a windfall tax on energy companies.

Taking questions in the chamber, Eamon Ryan said that he could "not rule out any other measures" after companies posted what a Labour TD called "hyper-normal profits".

Ged Nash had said: "The ESB, a citizen-owned company, posted €670m in pre-tax profits and is paying €126m dividend to the Exchequer. 

"It could be paying more and I think the minister should demand that it pays more."

He said the Irish arm of the company that operates the Corrib gas field, Vermillion Energy Ireland, posted more than 1bn Canadian dollars in pre-tax profits last year. 

Labour TD Ged Nash said the ESB posted €670m in pre-tax profits and is paying €126m dividend to the Exchequer but should be paying more. Picture: Gareth Chaney/Collins

"Do not let it off the hook — it needs to be in the sights of this Government," he said.

We cannot and should not rule out the prospect of a windfall tax on what are hyper-normal profits being posted by the energy companies.

"It is absolutely perverse when people throughout this country are struggling to make ends meet, when we will have more people in energy poverty this year than we had last year, that these companies are making super-normal profits on the back of this crisis."

Mr Ryan said he would discuss the issue with Finance Minister Paschal Donohoe.

"We will have to manage this through next autumn, and winter is going to a particularly difficult period so I will work with the minister, Deputy Donohoe, and look at whatever range of measures might be needed to help further," he said.

Mr Ryan had earlier met European Commissioner for Energy, Kadri Simson, in Dublin. Ms Simson is in the country to discuss energy policy with Irish energy stakeholders.

Speaking to reporters after that meeting, Mr Ryan said his thinking on liquified natural gas had not changed and that Ireland's 'opportunity' is in developing hydrogen.

Ms Simson said Europe needs to diversify its gas supplies to "get rid of Russian gas" from the EU. She said Ireland should focus on renewables rather than LNG.