Government cannot 'lift all the burden', warns McGrath

Michael McGrath: 'The focus here is on cost of living, alleviating to the greatest extent that we can, the pressures that people are facing.'

The Minister for Public Expenditure has promised a strong package of cost of living supports in Tuesday’s budget that will kick in immediately but warned that the government can not "lift all the burden".

Michael McGrath said negotiations on the final estimates will continue through the weekend and that he hopes he and Finance Minister Paschal Donohue will be able to present a final package to the party leaders on Sunday evening.

But as another energy company announced price hikes today, and with warnings that more price hikes will follow, Mr McGrath refused to drawn on the detail of any possible energy cost supports that may be announced, but suggested that supports could be applied until next March or April.

€200 credits

It has been reported that three €200 credits could be applied to electricity bills over the coming months.

“I’m not going to add to speculation,” Mr McGrath told reporters at the official opening today of the Port of Cork’s new €89m container terminal.

“We have to present a package to the party leaders and then ultimately, the full cabinet has to approve the budget. And that will happen on Tuesday morning.

“But there will be supports that are directly linked to energy costs.

“That is the root cause of much of the inflation and inflation has broadened.

“We acknowledge that in terms of other household bills, groceries, and so on.

“And that's why with the resources that we have available, the focus here is on cost of living, alleviating to the greatest extent that we can, the pressures that people are facing.

“We're not saying that we can lift the full burden off everyone entirely. We cannot do that.

“So we will target significant resources to those that need it the most while also having broader measures, because we acknowledge that many people who are working, who don't get state benefits are feeling the pressure too and are going to have really high bills in the months ahead and they will need support from the state and we will provide that.” 

'Tough months ahead'

He also said the budget will bring significant benefits to people very quickly.

“It is going to focus very much on the cost of living, supporting households, supporting businesses,” he said.

“The months ahead will be tough. We acknowledge that.

“And we're determined to do all that we can as a government to help so there will be help that will come through pretty much immediately.” 

Mr McGrath also criticised Sinn Féin as it launched its alternative cost of living package, which includes a cap on electricity prices at summer 2021 levels until next February.

“I do look forward to studying their pre-budget submission and in particular seeing how they're going to fund all of the extravagant promises that they’re making,” he said.

“We're in government, we have to actually do things and deliver and we have to bring forward a credible package, which can be funded, and it will be funded because this government has managed the economy well.

“The reason that we have a large surplus this year and expect to have a large one next year is because of the management of the public finances, it’s because of the way in which our enterprise policies have enabled a strong economic rebound, that, as well as giving us resources to help people the Sinn Féin policies will do the opposite.

“They're happy to say how they would spend the money that our policies have helped to generate. And I think that doesn't add up.”