I welcome, on behalf of the Minister for Finance, the opportunity to discuss the Private Members' motion tabled by Sinn Féin regarding the cost of motoring. The Government proposes to put forward a countermotion. While it is acknowledged that the cost of motoring may be a challenge for many, the Opposition's motion fails to take into account the progress made by this and previous Governments in the areas it has highlighted. We would be in a much worse position if it were not for this progress, something conveniently ignored by many colleagues opposite. The Opposition motion does not take into consideration the costs involved in its proposal, nor does it propose alternative revenue-raising measures. If it was serious about its proposal, it would at least put forward the costings in terms of how it would eliminate all of its proposals. It also ignores Ireland’s international commitments on climate, while offering no alternative mitigation measures. It is yet another example of a party making lots of noise, but when push come to shove it is unable to back it up with real work. First, the motion seeks to reverse the most recent carbon tax increase for petrol and diesel and reverse the 1 May increases in home heating fuels. This ignores the recommendations from the Climate Change Advisory Council and scientific experts who agree with the planned carbon tax increases. Ireland’s carbon tax is an integral part of the Government’s response to the need to address climate change, as well as Ireland’s legally binding commitments established in the Climate Action and Low Carbon Development (Amendment) Act 2021. Importantly, the additional yield raised by carbon tax is ring-fenced for climate action and just transition measures. Budget 2026 provides for over €1.1 billion to be allocated towards such measures, an additional €163 million on the allocation for 2025. Further, €350 million of this is allocated to targeted social protection interventions. As of budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for climate action and just transition measures since 2020. Many such measures are welcomed by Opposition Members when they are announced. ESRI analysis shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax. Analysis undertaken for budget 2026 using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package estimates that the net impact of the combined measures is progressive - they help people who are less well off, something the Opposition fails to acknowledge. Half of households are better off due to the measures part funded by additional carbon tax funds, with households in the bottom four income deciles benefiting the most. Ultimately, it must be recognised that a number of factors affect the final retail price of fuels, including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. While taxation affects the final retail price, amendments to tax rates cannot fully absorb price shocks given the larger impacts of energy markets and embedded costs, as well as pricing policy at wholesale and retail level. On the surcharge on motor tax, funnily enough, I am in general agreement with Sinn Féin. However, nowhere in the motion does it state how it will fund the €35 million it costs to equalise the rate for people paying in instalments. I agree that people who pay in instalments for motor tax are those who cannot afford to pay annually and should not be penalised. However, I note that the general scheme of the National Vehicle and Driver File Bill 2025 proposes the elimination of the requirement to display a paper disc and, as such, there is scope for review of the surcharge in the future. That is something I would very much support. Motor insurance premiums are influenced by multiple factors, including risk exposure, legal expenses and claims trends. Looking to premium trends in the UK and eurozone, premiums increased proportionately by 65% in the UK between 2016 and 2024 and by around 20% in the same period across the eurozone. In contrast, Ireland saw a 34% proportional reduction in average motor insurance premiums over the same period. A significant number of measures were introduced by the previous Government under the 2020 action plan for insurance reform to address issues with the cost and supply of insurance, namely the establishment of the Office to Promote Competition in the Insurance Market, a rebalancing of the duty of care, enhanced data transparency from the national claims information database, the reform of the Injuries Resolution Board, IRB, and the introduction of the personal injuries guidelines. The latest data from the national claims information database on motor insurance premiums shows that the average premium increased by 9% last year to €623. However, it is still lower than its peak in 2017 of €729. While certain reforms have begun to stabilise award levels, delays in litigation and wider inflationary factors continue to impact premiums. Taking account of general price developments in the economy, it is only in recent times that the gains from previous Government reforms have begun to be eroded. This is something we acknowledge and are taking action on. The Government developed additional reform measures as part of the 2025 action plan for insurance reform, which I published in July 2025 - there was no submission from the party opposite - to enhance transparency, affordability and competitiveness. One of the key actions in the new action plan is the development of a transparency code for the insurance industry. The code will require insurers to provide simple and understandable explanations of how premiums are formed and what broader factors influence pricing. It will ensure that the insurance market operates with integrity and builds trust and that consumers are empowered to make informed decisions. The development of this code is well under way, and I will discuss it with my colleagues on the Cabinet sub-committee on insurance reform in a matter of weeks. High legal costs also remain a challenge and are impacting the cost of motor insurance. The implementation of further legal reform to strengthen the role of the IRB and amend the Judicial Council Act 2019 to strengthen transparency and implement a robust process for a future review of personal injuries guidelines are priority actions in the action plan to address further transparency and affordability of insurance. I have been advised by my officials that the Sinn Féin Private Members’ Bill - the Judicial Council (Amendment) Bill 2021 - draws heavily on measures introduced in the UK and, as such, does not take account of the significant past and ongoing work undertaken by the Government to address the cost of insurance. The Bill could potentially undermine ongoing efforts to reform the insurance sector, while also creating barriers to market competition and potentially passing additional costs to consumers in the form of higher premiums, which is something I do not think the party wants. The Opposition motion also seeks to stop the proposed toll increases planned for January 2026. The motion fails to recognise that there have been extra inflationary costs in the construction industry, including products used for pavement repair, meaning the cost of the protection and renewal of the existing road network has increased significantly. The Opposition also failed to recognise that revenues raised by toll roads are invested in the operation and maintenance of our road network, as well as paying off the cost of loans to build these roads. In terms of the framework for setting tolls, toll by-laws for each individual road set out the basis for calculating maximum tolls each year. Maximum tolls are calculated for each vehicle category. Transport Infrastructure Ireland, TII, calculates the maximum tolls for the Dublin tunnel and the M50 and decides the tolls that should apply. The public-private partnership, PPP, companies calculate the maximum tolls for the eight PPP concession schemes and propose the tolls that should apply. The mechanism for these calculations is set out in the individual toll by-law and is based on the consumer price index, CPI. Actual tolls charged may not exceed the calculated maximum toll for each scheme. Following the application of the CPI inflation figure of 2% for the period from August 2024 to August 2025, the board of TIl has approved a number of toll changes from 1 January. It is worth pointing out that auto fuel prices in June 2022 recorded that average petrol prices were €2.17 per litre and average diesel prices were €2.15 per litre. As of Monday, 11 November, average prices are significantly lower, with petrol prices at €1.74 per litre and diesel prices at €1.68 per litre. It is also worth reiterating that motor insurance premiums, while having risen in the past 12 months due to inflationary pressures, are still approximately 34% lower than their peak in 2016. We acknowledge the increases in the past nine months. Work is under way to address that. The Government cannot accept the motion put forward by Sinn Féin as it does not reflect established facts or realities. Fiscal policy must strike a balance between, on the one hand, providing relief where it is appropriate to do so and, on the other, maintaining our public finances on a sustainable trajectory over the medium term. The House should reject Sinn Fein’s Private Members’ motion on the cost of motoring and instead support the Government’s countermotion.

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That is not what I said.

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