Taoiseach Micheál Martin has said the forthcoming Budget “will focus on the cost of living” as the Coalition faces a renewed push to review plans to unwind excise cuts on fuel from September.
The cuts were implemented in March amid global uncertainty but fuel importers claim prices are now higher than when the reductions were introduced.
Speaking in Belfast at Fleadh Cheoil na hÉireann, where he hailed the cross-community participation in the event, Mr Martin said: “In terms of the fuel costs and so on, the forthcoming Budget will focus on cost of living. And through taxation measures, we will reduce the burden of income tax on workers.”
He added: “The cost of childcare is an area where we can help reduce the burden of cost of living for people.
“As well as the disability sector, and working on the cost of disability as well as working on issues such as housing which is the biggest social issue we are facing.”
‘Commodity prices higher in August than March’ – Fuels for Ireland
The representative body for major fuel importers, distributors and retailers in Ireland had said that it would be “absolutely reckless” to reimpose excise duty cuts later this year.
The warning, from Fuels for Ireland, came after the Government said the reductions remained under review.
The reversal of the cuts, introduced in March amid global uncertainty, is due to begin next month.
Fuels for Ireland Chief Executive Kevin McPartlan said he accepted that the reductions “should be a temporary measure”.
However, he added: “The commodity prices that we’re experiencing in August are higher than they were in March.
“I saw prices between €1.91 and €1.93 per litre of diesel,” this morning, he told RTÉ’s Morning Ireland.
“If you add the 32c – that’s the 30c Excise Duty cut and the 2c NORA (National Oil Reserves Agency) levy suspension – that’s taken us to €2.25.
“That’s higher than it was when we made the decision to bring prices down by introducing these excise cuts.
He said that it was “higher than it was when hundreds of plant hire operators, agricultural contractors and hauliers,” brought “the country to a standstill”.
Prices seen in August already higher than March, says Kevin McPartlan
Mr McPartlan added: “It is absolutely reckless to think that we would reimpose these excise duty cuts, reimpose the NORA levy and then, in addition to that, go forward with the carbon tax increase, which the Government is committed to on Budget night, and go forward with an increase in price which will be caused by changes to the renewable transport fuel obligation scheme on 1 January which, all in all, will add 35c plus per litre to the prices we’re paying today – if all else remains equal.”
He said that a strategic review of all the costs associated with fuel prices is required, adding that this “would give us levers to address” the issue.
“This is not a normal product … nobody decides whether they’re going to use fuel based on the price … it is an essential and it should be regarded as an essential,” Mr McPartlan said.
“Nobody decides whether they’re going to use fuel based on the price – or very, very few people do,” particularly those in rural areas.
“You don’t decide to drop the kids to school, whether you’re going to go to work … businesses don’t decide whether they’re going to deliver their product to market,” after considering the cost, Mr McPartlan said.
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Opposition parties are also urging the Coalition to review its stance on plans to unwind emergency excise cuts from September.
Sinn Fein has consistently insisted the cuts should not be touched until October’s Budget and not during the Dáil’s Summer recess.
Independent Ireland Leader Michael Collins has said the Government “risks a wave of business failures, job losses and further pressure on families already struggling with the cost of living”, should it proceed with its current plans
‘A necessity’
The President of the Irish Road Haulage Association said comments by the Minister for Public Expenditure that temporary cuts to excise duty on fuel remain under review are “certainly welcome, but they are a necessity”.
Ger Hyland said that as a small island nation on the edge of Europe, if Ireland does not “have a transport economy, we don’t have an economy.”
Speaking on RTÉ’s Today with Philip Boucher Hayes, he said this was especially true of the rural economy.
“People are trying to get to work, people are trying to get to shop, fuel prices are a significant cost in any family’s budget, and especially for our [IRHA] members,” he said.
“Fuel is now hovering again over €1.90 a litre, you take some of the fuel supports off of that and we’re heading back towards €2.20 a litre.
“Our industry at €1.90 a litre is unsustainable,” he said.
He said hauliers were not in a position to pass on rising fuel costs as members of the IRHA “in a lot of cases are price takers, we’re not price makers.”
“Our industry is working on between 3% and 5% of a margin, that margin is gone, especially at €1.90 a litre at the pumps, we just cannot sustain it.
“We’ve put in a year like we’ve never, ever seen before, I’m 40 years in transport, my parents were there before me, and our transport industry is based on a lot of small indigenous rural-based transport companies who are employing local people.
“Even the employees that our industry are employing, they’re all travelling to work, so they’re all suffering significant increases in their fuel on a weekly basis,” Mr Hyland said.
Additional reporting: Barry Lenihan
