Cost-of-living measures will target those on low incomes, says Micheál Martin

However, as inflation is now 'trending down', that will be factored in when measures are being decided

Tánaiste Micheal Martin is to meet the other Coalition party leaders, as well as the finance, public expenditure, and social protection ministers today. Picture: Brian Lawless

Tánaiste Micheál Martin has said the Government’s fresh cost-of-living measures will help people on low incomes.

Mr Martin also said he wants the 50% cut to public transport costs for students and young adults to be extended beyond this year.

He was speaking in the Dáil ahead of a meeting later on Thursday, which will be attended by Finance Minister Michael McGrath, Public Expenditure Minister Paschal Donohoe, Social Protection Minister Heather Humphreys, and the leaders of the three Coalition parties.

“We will continue to support families who are under pressure and continue to be under pressure because of the cost-of-living situation, but inflation appears to have peaked,” he said.

“It’s now trending downwards, and that’s something that has to be factored in.

We’re going to come forward with proposals to deal with people on low incomes, to target our resources to those on low incomes, and that’s the measures that we’re now discussing among the party leaders.” 

Labour leader Ivana Bacik said that untargeted electricity credits were not the way to go, and she called on the Government to adopt her party's plan for a €9 "climate ticket" which would provide bus and rail public transport travel for a month and take the equivalent of 23,000 cars off roads.

Mr Martin said he was not "anti-road" as they were needed for bus transport and electric vehicles, adding that the Macroom bypass provided pollution relief for the people living in the area and improved safety.

Sinn Féin TD Pearse Doherty said the recent Barnardos report, which stated that one in 10 of the parents surveyed had used a food bank in the past year, was a “shame” on Government policy.

He pushed for the Government to announce a comprehensive support package now.

'Contain expectations'

Taoiseach Leo Varadkar told the Fine Gael parliamentary party meeting last night that there is a need to “contain expectations”, and it will not be an €11bn package.

Party sources said Mr Varadkar said the Government has to ensure what financial measures they announce next week will have to be enough, as the Government does not want to have to do something again in May or June.

Sources said the Taoiseach was “cold enough” towards keeping the VAT rate at 9% for the hospitality industry, an issue that was raised at the meeting by senator Tim Lombard, and TDs Paul Kehoe and Brendan Griffin.

The Taoiseach also said it is clear that people are struggling more than others with the cost of living, and he expects proposals to go to Cabinet on Tuesday.

He said a finance and social welfare bill may be required, and the Government hopes to get it all done by February 20.

Finance Minister Michael McGrath is understood to have told the Fianna Fáil parliamentary party meeting that the Government needs to retain some resources to be able to help later in the year.

He emphasised that when it came to the 9% Vat rate for the hospitality sector, it would cost €500m to extend to the end of the year.