Government acting like ‘helpless, innocent bystander’ in cost-of-living crisis

The Government acts like a “helpless, innocent bystander that can do absolutely nothing” against a cost of living crisis that is “crucifying” workers, pensioners and students, People Before Profit has said.

Dún Laoghaire TD R‘ichard Boyd Barrett said hundreds of thousands of workers were on low pay in the State and struggling from deprivation while “spectacular profits” were made by energy companies.

“Even Boris Johnson, the Tory, can introduce a windfall tax on the profits of these energy companies to try and get some revenues to protect ordinary people from the cost-of-living crisis,” Mr Boyd Barrett said during Leaders’ Questions in the Dáil on Tuesday.

“But this Government won’t even do what Boris Johnson is doing…He’s no left-winger. When are you actually going to bring in emergency measures on housing costs, on people’s incomes being slaughtered, on a cost of living that is crucifying ordinary people?”

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Mr Boyd Barrett said so far the Government had “done nothing” to tackle the cost-of-living crisis while new figures from Eurostat had forecast that Ireland’s Harmonised Index of Consumer Prices measure of inflation had risen to 8.2 per cent in May.

“Then we have the Taoiseach warning of a new era of high energy prices, and that’s on top of last year alone a 42 per cent increase in energy and heating costs for ordinary people,” the People Before Profit TD said.

“Against this background of a cost-of-living crisis the Government acts like a helpless, innocent bystander that can do absolutely nothing about it, isn’t going to do anything before the budget, and is totally unclear that it’s going to do anything at all.”

In response the Minister for Public Expenditure and Reform Michael McGrath said it was “blatantly incorrect” to say the Government had “done nothing”. He said a package of measures worth €2.4 billion had been introduced to support households.

However, the Minister also said it was “not possible” for any government to introduce measures that “completely offset” the impact of the war in Ukraine, “which has caused such dislocation in the energy markets and in relation to food and materials across the supply chain”.

Mr McGrath said the Government had to be cognisant of “increasing risks to the global economy”.

“As a small open trading economy Ireland is not immune from those risks either. The cost of borrowing for our country has increased significantly in recent weeks.”

He said the priority now was to agree in the summer economic statement what was the budgetary stance for Ireland.

Meanwhile, a motion calling for an urgent payment to workers and families to tackle the cost-of-living crisis is due to be introduced to the Dáil on Tuesday evening by Sinn Féin. The party has called for a payment of between €100-€200 to provide “crucial support for people hit by spiralling costs”.

Separately, Minister for Finance Paschal Donohoe said the inflation estimate was the type of figure that was always considered possible given the “intensified effects of the war in Ukraine”.

Speaking on RTÉ’s News at One, Mr Donohoe emphasised that the Government appreciated how difficult high energy prices were for so many in Irish society and acknowledged concern about a further rise in prices given the decision by the EU to ban imports of two-thirds of Russian oil.

“That is why we have brought in a range of measures to help, some measures that are targeted and other measures to help all with the rising cost of energy.

“I do need to get the balance right that what I do now doesn’t create further difficulties and challenges for us tomorrow, which, of course, Sinn Féin don’t care about. I absolutely appreciate that, and know it is a reality for many. Underneath these macro figures there is difficulty for many.

“But the Government did anticipate as we moved through the year that we could face these challenges and it is why we have put in place additional measures on top of our budget day package last October of well over €1 billion of taxpayers’ money to reduce excise, to cut VAT, to bring in an energy credit, and to provide two payments of €225 in total for those who will be affected the most by the rise in these energy costs.”