I move: "That the Bill be now read a Second Time." I welcome the opportunity to speak on the Bill, which is relatively short and covers the tax aspects of the energy support measures announced by the Government in March and April this year. I will first say a few words about the wider economic landscape. As Deputies are aware, the global economy is facing its second major energy price shock in less than five years. As a small, highly open economy and a net energy importer, Ireland is naturally exposed to movements in international energy prices. The disruption to energy supplies that we have seen to date has already fed into higher and more volatile energy prices with direct consequences for households and businesses. The role of Government in these circumstances is to spread the burden to ensure that the most exposed sectors are partly shielded. We must also mitigate the impact on those least able to absorb the price changes. I stress that this is about burden sharing and not full absorption. No government in the world can absorb all of the price shock. Governments should not chase inflation when at full employment as this can lead to far greater economic problems over the longer term. We think we have struck the appropriate balance between delivering timely support while at the same time ensuring that the public finances remain on a sustainable trajectory. The combined energy support packages, which also included measures outside of the Bill under discussion today, is estimated to cost over €750 million. The tax measures, which we will discuss today, are alone estimated to cost €442 million in terms of revenue foregone. As the House will be aware, this substantial package, which is one of the largest in Europe, was introduced following the energy price shocks caused by the conflict in the Middle East. The factors that have brought us here are far from our shores and beyond our control, but as a Government we have acted to mitigate the impacts across society with a broad range of measures. Some of the measures, like the diesel rebate scheme and the fuel allowance extension, are targeted, while others are more broad reaching, such as the excise rate reductions. As we have stated previously, no government can entirely eliminate the impacts of such a broad-reaching crisis. It is also important to again emphasise the importance of ensuring that our response needs to be measured and not risk second-round inflationary impacts. I will briefly outline the elements of the support packages covered in the Finance Bill. These measures were debated in the House on 24 March and 14 April when the financial resolutions to give them temporary effect were approved. I thank the Oireachtas Joint Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach for its constructive engagement to date on the outline of the Bill, which means these important measures can move as quickly as possible through the legislative process. The Bill is quite short, consisting of four substantive sections. Section 1 provides for the increase in the maximum repayment rate under the diesel rebate scheme. Section 2 deals with the temporary excise rate reductions for petrol, diesel, green diesel and the deferral of the planned 1 May carbon tax increase for mineral oil fuels. Sections 3 and 4 relate to the deferral of the planned 1 May carbon tax increase for natural gas and solid fuels. I will now turn to each section in detail. As I mentioned, section 1 relates to the diesel rebate scheme, which was introduced in 2013 to provide support for essential road users at times when the price of auto diesel was relatively high. The diesel rebate scheme, DRS, is permitted under Article 7 of the energy tax directive, subject to the conditions set out in the directive. The scheme provides qualifying road haulage and passenger transport operators with a partial repayment of mineral oil tax paid on auto diesel. In 2025, close to €39 million was paid out under the scheme, providing targeted support to the road haulage and passenger transport sectors. The DRS also provides support to the wider economy, which is dependent on haulage as a distribution network. Households and other businesses benefit indirectly by virtue of reduced distribution costs. To qualify for the scheme, road haulage and passenger transport operators must have an appropriate road transport licence and be tax compliant. The auto diesel must be used in qualifying vehicles in the course of the transport operator’s business. In addition, the auto diesel must have been purchased with tax paid in the State by means of a Revenue-approved fuel card provider or in bulk for delivery to the transport operator’s business premises. The diesel rebate scheme rate of repayment is linked to the average retail price of auto diesel based on data from the Central Statistics Office. Since the end of 2021, a 7.5 cent per litre maximum level of rebate has applied to all claims, reflecting the relatively low price of €1.43 per litre at which the maximum rebate was given. The amendment we are speaking to today provides for an increase in the repayment cap from 7.5 cent per litre to 12 cent per litre. This enhanced or extended repayment rate applies to claims covering auto diesel purchased between 1 January and 30 June this year. The diesel rebate scheme operates on a quarterly repayment basis, with repayment claims available for submission to Revenue quarterly in arrears. On 1 April 2026, Revenue opened the claim period for the enhanced rate under the rebate scheme for quarter 1. Some 1,427 claims, to the value of €10.6 million, were submitted in the period from 1 April to 5 June 2026 in respect of the first quarter of 2026. This compares with the 1,015 claims to the value of €4.9 million which were received for quarter 1 in the same filing period in 2025. I am advised by Revenue that it is currently processing these claims and has, between 1 April and 5 June, refunded 847 of those 1,427 claims to the value of €5.9 million under the enhanced rebate scheme. The estimated cost of increasing the maximum repayment from 7.5 cent to 12 cent from this six-month period is just €10 million. Moving to section 2, which relates to the temporary reductions in excise applying to auto diesel, petrol and green diesel and the deferral of the May carbon tax increase on certain fuels, in March, we legislated for VAT-inclusive excise reductions of 15 cent per litre for petrol, 20 cent per litre for auto diesel and 3 cent per litre for green diesel. In addition, the NORA levy was reduced by 2 cent per litre for liquid fuels such as auto diesel, petrol, green diesel and kerosene. The initial legislation provided for these temporary reductions to be effective from 25 March to 31 May at an estimated cost of €150 million in terms of revenue forgone. In April, the Government announced a further reduction of 10 cent per litre on auto diesel and petrol as well as a further 2.4 cent reduction for green diesel. Taking the 2 cent NORA levy reduction into account, this brings the total reductions to 32 cent per litre for auto diesel, 27 cent per litre for petrol and 7.4 cent per litre for green diesel. We also legislated to extend all of the excise reductions until 31 July 2026. The Minister for Climate, Energy and Environment has also acted to extend the NORA levy reduction until the end of July. The estimated cost of these further excise rate reductions and the extension of the initial reductions until is €260 million. The NORA levy reduction is estimated to cost €40 million. Section 2 also provides for the deferral of the planned 1 May carbon tax increase on certain mineral oil fuels, including kerosene heating oil and marked gas oil. Sections 3 and 4 also deal with the deferral of the carbon tax increase for natural gas and solid fuels. The decision to defer the carbon tax increase was made in recognition of the sustained level of inflation that green diesel and kerosene in particular were facing. The deferral of the increase provides additional relief from price pressures to consumers of these fuels as well as consumers of natural gas and solid fuels. This decision reflects the Government’s continued commitment to balancing climate ambition with the need to mitigate the impacts on households and businesses from the energy price shock. As the Tánaiste stated at the time of the decision in April, this is the first time that we have postponed a carbon tax increase since the multi-annual trajectory of carbon tax increases was introduced in 2020 and this was not a decision that was taken lightly. Since the introduction of carbon tax increases under budget 2020, the Government has ensured that revenues raised are transparently and purposefully recycled. These investments have funded energy efficiency upgrades in homes and communities, supported decarbonisation across agriculture and transport and underpinned just transition measures. The allocations for 2026 were determined as part of budget 2026 and are consistent with the approach taken in previous years. Over €1 billion has been allocated to climate action and social protection measures, representing an increase of €163 million on the 2025 allocation. These funds are specifically targeted at measures that ensure households most exposed to energy and fuel costs are protected from unintended impacts. The agreed deferral of the carbon tax increase will result in lower carbon tax revenues in 2026 than originally projected, with an estimated revenue impact of €22 million. This represents a small share of the total allocation of approximately €1.1 billion, just under 2%. The allocations set out in budget 2026 were approved by the Oireachtas and remain the voted amounts for the year. This includes carbon tax funding commitments incorporated into the national development plan, which provides medium-term budgetary certainty for the sectors and communities supported by these measures. It is not possible to offset all of the recent increases, which are driven by market forces, using the tax system. However, the measures this Bill legislates for will provide significant mitigation, supporting households and businesses experiencing the most acute impacts of the increases in fuel prices. As I mentioned earlier, these tax measures form part of the broader package of measures Government announced in March and April this year. In March, we also extended the fuel allowance by an additional four weeks. This targeted intervention provided the 470,000 households in receipt of the fuel allowance with an additional €38 per week, totalling €152 over the four-week period on top of the annual allowance of €1,064. On 12 April, as part of the second package of supports, the Government announced a comprehensive €100 million fuel income support scheme. The fuel income support scheme has been introduced as a targeted income support to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The scheme is available for fuel used over the five-month period from March up to the end of July 2026, which coincides with peak fuel usage on farms. Farmers and agricultural contractors availing of the scheme will benefit from a support rate equivalent to approximately 20 cent per litre of green diesel. The funding will be distributed proportionally, reflecting a point that was strongly emphasised in engagements with the representative farm and farm contractor groups. In terms of the fuel income support scheme for farmers, foresters and contractors, which closed for applications on 2 June, it will take some time for all the relevant information to be collated to give definitive information regarding claimant numbers and likely payment amounts. This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year. Farmers and agricultural contractors availing of the scheme will benefit from a support rate equivalent to approximately 20 cent per litre of green diesel. To further support the haulage and coach sector, the Government has also established a new road transporters support scheme, RTSS. This is modelled on the licensed haulage support schemes of 2022 and 2023, which were deployed to assist the sector with the higher fuel prices following Russia's invasion of Ukraine. The road transporters support scheme will provide direct payments to hauliers, both licensed and own account. Payments are graduated, with smaller businesses receiving a proportionately greater level of support. Additionally, support for operators of Transport for Ireland's Local Link services will be available through the National Transport Authority, and support for school transport services will be facilitated by the Department of Education and Youth. The estimated cost of these additional transport sector supports is €120 million. As I said, this is a short but important Finance Bill. There has already been extensive debate on these measures when they were first announced and when the subsequent financial resolutions were passed. I am fully aware of the sensitivity and topical nature of the issues at hand. I look forward to further constructive discussion on this now on Second Stage and as it progresses through the legislative process. I commend the Bill to the House.
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I met protesters on the march. I did not go anywhere. I was not booed either.
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Not at all.
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I thank all the Deputies for their contributions today. I join in the congratulations to my colleague. It is a great honour to be elected at any stage but he will be particularly pleased to be re-elected during a by-election. I offer him my best wishes for the remainder of this term. Neither I nor anyone in Government are patting themselves on the back. We are acknowledging and outlining the measures we have introduced in response to a global issue. The one thing we can all agree on is the need to continually monitor our response to these international high energy costs. At the very beginning, when the first set of schemes, savings or supports were introduced, we said this would be kept under constant review and that we would revisit it, if needed. We did that. It is also right and proper to say that it is not possible to offset all of the recent market-driven fuel price increases using the tax system. Some in the Opposition will say that although not all will. It is fair to say that these measures, together with the non-tax supports introduced by Government, will provide significant mitigation, supporting those who are experiencing the most acute impact of the increases in fuel prices. The total estimated cost of the support packages the Government has introduced is over €750 million, making Ireland's support package one of the largest in Europe on a per capita basis. I will say something to the Members opposite. I recently travelled to Belfast and had a very productive meeting with the their party colleague, the Minister, John O'Dowd. He too acknowledges the real challenges in trying to protect every single person. He would not claim to be able to do it either. I will say that what we primarily spoke about was financial literacy, credit unions, the promotion of financial services and how we can work together but he was fair in his acknowledgement of the challenges that all governments have. Each of us across the various political parties, whether talking to sister parties in Europe, or when we travel as part of our membership of the multilateral fora, knows that every single government throughout the globe is facing huge challenges in bringing in supports. It is not possible, despite how it is portrayed, to absolve and mitigate all of the effects of the energy increases. Deputy Doherty raised concerns with regard to the diesel rebate scheme and cash flow issues for recipients. The Government is cognisant of the current difficulties being faced by licensed operators. I would highlight that the diesel rebate scheme will provide much-needed cash flow to the sector. I can confirm that Revenue has reviewed its internal processes and identified several IT solutions, which are to be implemented to issue refunds faster to compliant taxpayers. The Deputy was also critical of the fact that reductions applied to diesel and petrol were also applied to aviation fuels. As the Deputy will be aware, because, to be fair, he is competent in his job, the taxation of energy products in Ireland is governed by the EU energy tax directive. This directive prescribes the minimum rates for fuels and fuel uses. The directive prescribes that in addition to adhering to minimum rates, the excise duty rate on particular fuel types used for propellant purposes must be consistent across all propellant uses for that fuel. This means that the same mineral oil tax rate must apply to heavy oil, whether it is used as a propellant in motor vehicles, aircraft or waterborne vehicles. Ireland has no discretion in this regard, and we are simply adhering to EU law, as we must. Of course, the facts do not support the Deputy’s narrative. He is portraying a different issue as if we made a conscious decision to not exclude private jet fuel. That is not factual. It cannot be done, and the Deputy knows it, but he wants to portray his narrative, and he wants to be able to stick it up on Facebook later this evening. That is the point.
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Deputy Doherty also called for the carbon tax to be further reduced for kerosene, as well as for further reductions in the mineral oil tax for other fuels. The Government has deferred the planned increase in carbon tax scheduled for 1 May until October. This will impact green diesel and non-propellant fuels such as kerosene, heating oil, natural gas and solid fuels. A number of speakers made the point that they are aware of old age pensioners who were going cold because they simply had no money for fuel. That should not be happening anywhere in any constituency. We are all constituency operators. We are all acutely aware of the exceptional needs payment that is available to people. When a Deputy gets up to say he was aware of three old-age pensioners, I would be asking why he did not assist those people to go to the community welfare officer and ensure they could get-----
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He did not claim that he did.
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With regard to the carbon tax, some speakers referred to no concrete measures being taken to reduce the long-term cost of energy for people. The deep retrofitting of houses is making sure that people who are in receipt of fuel allowance, who are more likely to be susceptible to fuel poverty, have lower energy costs in the longer term. In 2025, €469 million was spent on the retrofitting of homes. They are permanent measures. I see it first hand in my constituency, and I am sure others see it also. Some €140 million was spent on energy efficiency and €99 million on the fuel allowance. The fuel allowance was increased in the most recent measures and in the previous budget. The income eligibility criteria were increased, and people on the working family payment can now avail of this. Some 470,000 people are availing of these additional measures that are targeted at those who most need support due to fuel poverty. A number of Deputies, including Deputies Devlin, McGuinness, Brabazon and Kyne, made the point that the upcoming budget needs to ensure that workers are protected and supported. There should be a package of measures that rewards people who get up every day to go out to work, so they can feel the benefits of doing so. I would be very confident that that will happen in this budget. Deputy Nash made the point that the generation of resources and how we redistribute resources are very important. He is right. Budget 2026 was about protecting jobs. The Deputy is critical of the VAT reduction, which was supported by many in the Opposition. Perhaps it would have been better if it were targeted more at smaller microenterprises. That said, there are 190,000 people working in the hospitality industry, and 75% of those are in businesses with fewer than ten people. It is about protecting jobs. We invested in services, and the largest ever investment in the most recent budget was for the provision of housing. The first home scheme and the shared equity scheme are supporting people into home ownership, which is something we can all agree on. Deputy Michael Healy-Rae is right about the SEAI grants. We should be doing more. Anyone who applies for the grants only to be told there is an 18- to 24-month waiting list is bitterly disappointed. They see the benefits in their friend’s house, and they want that. However, they want it faster, and we need to work towards that. With regard to the overseas aid budget, Deputy Nolan suggested that if we did not give anything to overseas aid, we would have no challenge in society in Ireland today. While I would like to spend more, I am proud that as a developed country, we spend 0.56% of our gross national income on humanitarian supports for malnourished women and children across the globe, helping to build communities in the developing world. I think that is a good thing to do. To try to sow division by saying that if we did not do that, we would be able to answer all our problems, is distasteful and wrong.
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