Government not 'ruling anything in or out' around energy cost supports

Tánaiste Simon Harris said there would be 50,000 more households able to access the Fuel Allowance from this week

The Tánaiste said if there is a spike in inflation as a result of the war, it may move beyond a conversation around energy prices and into other products. File picture

The Government isn't "ruling anything in or out" in terms of supporting households struggling with energy costs as a result of the war in Iran, a spokesperson has said.

It comes as Tánaiste Simon Harris also said everything is “under review”. Mr Harris said any actions taken or considered by the coalition would need to be done “with eyes wide open”.

“We do need to take this step-by-step and day-by-day. I know that’s frustrating for people, I really do, but this is a conflict that is a week old,” Mr Harris said in Brussels. 

“At the moment, it's hard to predict whether this is something that lasts for a period of more days or weeks, or indeed, something that lasts for months.

“And there's a very, very different economic impact, and perhaps, therefore, a very different economic response required, depending on which of those scenarios materializes.” 

He said the Government would not put an “arbitrary number” on when it would consider intervention, saying the “general outlook” should be considered.

Duration of Iran war

“If you got into a prolonged conflict in the Gulf region, the inflationary impact of that could be very significant for whole swathes of the Irish economy, of the European economy, of the global economy,” Mr Harris said.

The Tánaiste said if there is a spike in inflation as a result of the war, it may move beyond a conversation around energy prices and into other products.

He said he would not compare the situation directly to the outbreak of war in Ukraine, but there had been “huge benefit” to engagement at an EU level.

“We do need to get a better understanding in the days ahead as to the likely various economic impacts of a conflict that goes on for a few short weeks, which the commission have today said could have a benign economic effect, versus one that goes on for a prolonged period of time,” Mr Harris said.

“We need to be very careful that the economic medicine that may be administered is the correct prescription.” 

The Fine Gael leader said there would be 50,000 more households able to access the Fuel Allowance from this week, adding that payments would be backdated to January.

Option for EU supports

The spokesperson for the Government said it would not be “ruling anything in or out” in terms of possible supports if the war in Iran is prolonged.

“They’re continuing to monitor, this is a constantly evolving situation,” the spokesperson said.

Asked if it was the Coalition’s preference for EU-level supports rather than direct Government assistance, the spokesperson said: “There’s an option for both.

“It is a week in the conflict, it’s a very volatile situation. It’s really just too early to judge.”