The Government is conscious of “fiscal sustainability” in its response to the fuel crisis, the Taoiseach has said, while the Tánaiste hinted at possible further measures.

Defending a recent package of measures for the transport and agriculture sectors, Micheál Martin said it was “essential” that Government enabled food production, adding that modern-day trade was dependent on hauliers.

“We are conscious of fiscal sustainability and the need to make sure that whatever we do is fiscally sustainable over the medium term,” he said in Dublin on Monday.

“And again we have to, from a strategic perspective, pivot more to renewables because that ultimately is the way to reduce cost for the country overall, and also independence of supply.”

He added: “We’re doing our best as a Government to try and alleviate pressures on families and on key sectors of the economy.”

Regarding food security, Martin said fuel prices had affected production in Ireland and elsewhere.

“That’s why it’s important that we underpin the capacity to enable food production in this country,” he said.

“In terms of haulage, I think modern day trade depends on hauliers, particularly in an island nation like Ireland, they’re central to our connectivity to the export markets. So it would seem to me that that’s a sustainable thing to do in the midst of a crisis, to support hauliers and, more generally, workers and people are trying to manage increased costs.”

Separately, Tánaiste and Minister for Finance Simon Harris raised the prospect of the return of energy supports in the autumn if the war in the Persian Gulf continues.

Harris said the Government would publish updated economic forecasts on Tuesday which would examine various potential scenarios, including the continuation of the war and the associated pressure on oil prices.

Asked if he would rule out a return of energy supports, Harris said: “No, it would be foolish to rule anything about, quite frankly. But I do have to take this step by step.

“We’ve got to get the balance right – the balance between trying to help people in the here and now, because it’s tough for people . . . but we’ve also got to make sure we have economic firepower to respond in the winter to deliver a good Budget, a Budget that can advance commitments in the programme for government but also a Budget that can help people if this crisis is continuing.

“We made a big intervention last week, but we also need to make sure we keep that powder dry for what could be a difficult winter if this conflict is ongoing.

“The good news is that the Irish economy is expected to continue to grow in all scenarios, albeit at a slower rate obviously in different scenarios,” said Harris, adding that surplus “can’t become a dirty word or a derogatory term” and that Ireland was fortunate to have one.

“Ireland was able to make an intervention last week, one of the largest in the European Union of €750 million, and we’re able to do that because of sound economic management and the hard work of the Irish people.

“And as a result now, even in the various scenarios, we will be able to plan for a Budget in October that will seek to make sure that work always pays, that we can keep our economy secure and safe and that we can also make further interventions if we need to.”

Harris also reiterated that he expected to see income-tax cuts in the Budget.

“There has to be a personal income tax package in my view in the Budget this year and I’d like to see progress on that in each of the four budgets the Government will deliver.”

Meanwhile, the Taoiseach also denied pushing Michael Healy-Rae out of Government.

Healy-Rae, who was one of several independents to support the formation of a coalition with Fine Gael and Fianna Fáil, resigned as a Minister of State over the Government’s handling of the fuel crisis and resultant protests.

Both he and his brother Danny Healy-Rae voted against a confidence motion in the Government last week.

Asked on Monday if he had pushed Michael Healy-Rae out of Government because his brother was going to vote against the confidence motion, the Taoiseach told reporters: “No, not at all.”

The Taoiseach also said his Chief of Staff Deirdre Gillane had not spoken to Michael Healy-Rae the night before the vote.

“I regret that former minister Michael Healy-Rae decided to resign.

“We had a good relationship and, you know, it’s difficult for him, it’s difficult for all concerned – but it’s. . . more complex than has been suggested.”

Martin was speaking after turning the sod on a development to deliver 779 apartments in Fairview, Dublin 3.

The project, being delivered by the Land Development Agency, Royalton Group and Walls Construction, will feature retail outlets and community amenities as well as a “state-of-the-art” mental-health facility for St Vincent’s Hospital, Fairview. - Additional reporting: PA