I move: "That the Bill be now read a Second Time." I welcome the opportunity to bring this Bill forward today. I thank my officials for the work they have done in a very short space of time as well as the Whip's office and the Opposition for facilitating this just the day after it was approved by the Government. I am acutely aware of the pressures being faced by Irish businesses and households. This Bill is being progressed as a critical response to the ongoing conflict in the Middle East, where the sharp and ongoing disruption to oil and gas production has resulted in higher global energy prices. Around the world, including here in Ireland, we have seen customers face higher prices for transport and home heating fuel. I know the House will share my concern at the immense human cost of this conflict and my desire to see an immediate de-escalation of the conflict and the resumption of normal activity in the Strait of Hormuz. The amendments being made via the Bill are part of a targeted package of support by the Government to address the pressure faced by consumers. The Bill gives the necessary legal basis for a reduction in the National Oil Reserves Agency, NORA, levy from 2 cent per litre to a nominal amount, effectively zero, for a two-month period. The reduction will come into effect from 1 April until 1 June 2026. The Government has reduced the rate of mineral oil tax for petrol, diesel and marked gas oil by 15 cent, 20 cent and 3 cent, respectively. These measures were passed by financial resolution last night, with near unanimous support from across the House. I will not labour the point, but I thought it was opposition for opposition’s sake when Sinn Féin opposed the reduction in excise duty yesterday evening. I hope the House can work in a constructive way today and be unanimous on this additional support, which is time-bound and targeted. Supports for haulage and passenger bus operators have also been introduced and the fuel allowance has been extended by four weeks, protecting the most vulnerable in society. About 470,000 homes are now in receipt of the fuel allowance. The changes being made to the fuel allowance will mean those eligible households will receive additional financial support of €152. Looking at it in the round it is a package of about €235 million in initial supports. We have retained the flexibility to be able to go back at this should we need to. The Bill also provides scope for the Government to amend this period by way of order at a later date, if required. Currently, the NORA levy is a charge of 2 cent per litre applied to most petroleum products sold in the market for the purpose of funding the operations of the agency and the Climate Action Fund. The reduction in the NORA levy for a two-month period is estimated to result in a reduction of levy income accruing to NORA of approximately €20 million and will remove this cost from consumers. The agency has operational responsibility for the day-to-day management of the State's strategic oil reserve. It currently holds 90 days of oil stocks. Stock may be released from Ireland's stockholding in the event of a shortage of refined product on the domestic market, or as recently happened to participate in an International Energy Agency, IEA, collective action, to alleviate a global oil shortage. Temporary and targeted measures to reduce fuel prices for households and businesses, with additional supports for key sectors of the economy are being introduced and may be adjusted as the situation evolves. Since the outbreak of this conflict, the Department of Climate, Energy and the Environment has met on a regular basis to assess the implications for the energy sector. Last week, I again chaired a meeting of the national energy affordability taskforce specifically focussed on this ongoing crisis. The group heard from the IEA's chief energy economist, Tim Gould, who provided sobering insight into the scope and impact of this conflict. On the basis of this presentation, it was clear that the conflict has already had a significant impact on the global supply of oil in particular, and that the nature and scale of this impact can increase exponentially as the conflict goes on and if there is additional direct damage to oil and gas facilities. A couple of the facilities that have been damaged and nearly destroyed will take a number of years to be restored into use. Because of the nature of shipping times, we are likely only beginning to see the full impact of the Strait of Hormuz, and while markets have priced this in to some extent, the effect on prices will be more severe if transit through the trait remains restricted. Our policy response must therefore be responsive to the conflict, and it is clear that there are still myriad scenarios as to how this unfolds. For this reason, I have requested that the national energy affordability taskforce establishes a dedicated expert advisory subgroup to monitor global supply and, in particular, supply to Ireland and to advise on appropriate demand-side responses. This group will be stood up in the coming days and will provide expert insight into me as Minister and to the Government. Supplies in Ireland remain sufficient, but there have been significant price increases arising from the market pressures. While it is clear that Ireland will be affected by this global supply chain, there is an obligation on suppliers to treat Irish consumers with fairness and respect. On this basis, I have written to retail electricity and gas suppliers, as well as the CRU and fuel suppliers, to emphasise the importance of reducing the exposure for Irish consumers from the price shocks that global uncertainty has created. In addition, the taskforce has been established by the Government to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments and protecting security of supply and economic stability. The first report of this group was brought forward in advance of budget 2026, and a range of measures were adopted on foot of that work. This included increased rates of payment and widened eligibility for social protection payments, a reduced rate of VAT to 9% on electricity and gas through to 2030, as well as the largest ever retrofitting budget. A key output of the taskforce will be the energy affordability action plan, which will identify a comprehensive range of solutions, including measures targeting households in energy poverty. The plan is currently being developed and will be finalised in advance of budget 2027. As Minister for Climate, Energy and Environment, this crisis has only strengthened my resolve to drastically improve Ireland's energy resilience by building our domestic renewables. This reduces our dependence as a country on imported fossil fuels, thereby reducing our exposure to the inevitable fluctuations and volatility in the market. To the end of 2024 we saw 40% of our electricity being generated from renewable sources, more than double the amount of renewables that were in our system in 2015 - all while demand for electricity has grown. We are building on that strong base with successful auctions, both onshore and offshore, with simplifying planning processes in order to accelerate the delivery of new projects, and by providing €3.5 billion in equity into the grid. At individual household level, retrofitting is one of the very best measures which a household can take to reduce their energy bills permanently. This year, I secured a record allocation for fully-funded and granted-assisted retrofits of €640 million which allows us to target 73,000 home energy upgrades this year. That will be added to in excess of 240,000 that have already received grants to retrofit their homes to make them warmer, their energy more efficient and to reduce their energy bills permanently. We need to accelerate the deployment of those grants as well as the grants to businesses. Last year alone, we saw 4,000 businesses avail of energy retrofit supports which reduces their energy use and to look to alternative uses of energy too and reduces their energy bills. These are permanent changes. That is why it is so critically important that the carbon tax remains in place. It is that tax that is ring-fenced to carry out the works we need right the way across residential and business sectors to improve people’s homes and reduce energy use. Energy affordability remains an absolute priority for this Government. Times are particularly difficult in what is a global crisis on the energy side, particularly with regard to supply and price increases. These are situations that Ireland is not grappling with on its own. The measures we have brought forward - which are immediate, short-term flexible measures - can be compared with our nearest neighbour which has deployed about £53 million, or €60 million, in its initial response. We have done it in a considered and practical way that can be sustained. We have to ensure that any measures we bring forward are affordable and sustainable but that we also retain the ability to respond further should this crisis accelerate and should the issue of price inflation in relation to fuel and electricity worse. It has the potential to increase more later on this year as many of our energy companies are hedged through this immediate crisis and we may see the pass-on effect of the price increases we are seeing now coming onto our electricity retailers to users in coming months. That is the reason we have to ensure the measures we bring forward are flexible and time-bound and that we retain the opportunity to respond as necessary. If we look at the number of crises this country has faced in recent times, from Brexit to the illegal invasion of Ukraine, the cost-of-living crisis and Covid, at every stage the Government has brought forward measures that by any fair assessment have worked and protected our economy and society. It is to ensure we can come through this particular crisis in the same manner we have to use appropriate supports that are sustainable and we will retain the right and the ability to be able to respond further should we need to. I commend the Bill to the House. I thank colleagues for their time today and I look forward to hearing their contributions.
Sentiment score: 0.16
Give me some examples of what they did in Europe.
Sentiment score: 0.00
It is not a very long Bill.
Sentiment score: 0.00
I could do so but I will wait until the end to respond to the debate.
Sentiment score: 0.00
Tá mé ag éisteach. I can walk and chew gum at the same time. I am actually explaining to the Minister of State, Deputy Dooley, what Deputy Whitmore is saying so that he understands the Social Democrats’ position. I am trying to be helpful.
Sentiment score: 0.11
We will helpfully respond to that.
Sentiment score: 0.51