Pearse Doherty (Donegal, Sinn Fein)
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71. To ask the Minister for Finance if he will reverse plans to raise the price of petrol and diesel through increases in excise duty, scheduled for 1 August; and if he will make a statement on the matter. [28771/24]

Pearse Doherty (Donegal, Sinn Fein)
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Perhaps this will be the trend from the new Minister for Finance. It is a simple question. Did he engage with Revenue or not? It is a yes or answer. What is he trying to hide? He and his Department either did or did not engage with Revenue. He said they are exploring all options. He did engage with Revenue. Why did he not just say that? What is he trying to hide?

There are, I think, five sitting days left before the summer recess. That means a resolution has to be brought before this House to stop the Government's plans to increase the prices of petrol and diesel on 1 August and again on 9 October. People are being hammered. Prices are still significantly higher than they were a number of years ago. They are 23% higher than they were three years ago. Petrol stations on which employment depends in Border communities are struggling to survive. They need a signal from the Government. Will the Minister indicate that he will bring a resolution before the House to stop the planned increases in petrol and diesel on 1 August and October?

Jack Chambers (Dublin West, Fianna Fail)
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I will not go back to the previous question but I referenced that we are exploring all options for a funding model. That is the position. I will engage with Government colleagues on that.

The Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT, amounted to 21 cent, 16 cent and 5.4 cent per litre on petrol, auto-diesel and marked gas oil, respectively. These temporary cuts to excise rates were initially due to end on 31 August 2022 but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates in June and September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but budget 2024 provided for a further extension until 31 March 2024, with phased restoration in April and August 2024. The first of these restorations took place on 1 April 2024, adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to marked gas oil.

The Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT, amounted to 21 cent, 16 cent and 5.4 cent per litre on petrol, auto-diesel and marked gas oil, respectively. These temporary cuts to excise rates were initially due to end on 31 August 2022, but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates occurring in June and September 2023. A final restoration of excise rates was due to take place yn 31 October 2023, but Budget 2024 provided for a further extension until 31 March 2024, with phased restoration occurring in April and August 2024. The first of these restorations took place on 1 April 2024 adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to marked gas oil.

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. It is important to note that despite the restoration of excise rates in April 2024, national average retail prices have shown steady decreases in recent weeks. While national average prices in May 2024 were approximately €1.84 and €1.78 per litre for petrol and diesel, respectively, more recent prices as of 1 July were approximately €1.77 for petrol and €1.69 for diesel. While I recognise that households and businesses continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.

The Government has provided relief to consumers and businesses since 2022 through a number of support measures, including temporary reductions in excise. These measures were introduced as temporary support measures and involve an ongoing cost the Exchequer while they are retained. There are no current plans to change the planned restoration rates. I will, of course, keep this matter under review in the coming weeks.

Pearse Doherty (Donegal, Sinn Fein)
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So the Minister will push ahead with pushing up petrol and diesel prices on 1 August and again in October despite his predecessor giving indications that this was likely not to happen. That would be my reading of it in terms of the language and tone he was using. That is really disappointing. Petrol prices are 23% higher than three years ago. Diesel prices are 28% higher. We have never brought in as much tax on these two areas than we have now. I am aware that the Government's policy is to push up these prices on ordinary families but we disagree with the Government on that policy. It is the wrong thing and it is just making families poorer. I urge the Minister to bring a resolution before the Dáil.

I heard him say on radio this morning that he was bringing the budget forward to 1 October and suggesting that it was due to a calendar clash in Europe. That is laughable. I have been the Opposition finance spokesperson for 14 years. September is the crucial month for taxation and the Minister knows that. Companies have to file for September. The reason a White Paper is not published until the Friday before a budget is the input of the September tax results is needed. The Government is going into this budget without sight of the September expenditure or revenue figures. That is okay but let us not pretend that it is for anything else. Let us not pretend it is for anything other than to potentially pave the way for an early election. There is a reason other finance Ministers were very clear on this down throughout the years. September is crucial. It is a time when companies pay their corporation tax rates-----

Neale Richmond (Dublin Rathdown, Fine Gael)
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Two years ago, the Deputy was demanding an early budget.

Pearse Doherty (Donegal, Sinn Fein)
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Two years ago it was Covid and exceptional circumstances so there was an early budget. I am making the point that the Minister is deciding to go into the budget without sight of the crucial September tax returns, which every previous Minister for Finance has said is crucial to the input of the budget. That is fine if they want to bring it forward but let us not pretend it is because of a date clash in European Union meetings.

Jack Chambers (Dublin West, Fianna Fail)
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I am not sure what question the Deputy is asking. Is he talking about the actual parliamentary question he asked or is he asking about the date of the budget? As he knows, Sinn Féin called for an earlier budget two years ago when we were responding to the cost-of-living challenges. We have to submit our wider fiscal and budgetary framework to the European Commission, as he will be aware, and our medium-term fiscal plan by 15 October. That is the basis of our preparation. As I said earlier this morning, the Government is committed to running the full term and responding properly to the wider issues we have in the context of budget 2025.

Pearse Doherty (Donegal, Sinn Fein)
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But the Government will not have the September figures.

Jack Chambers (Dublin West, Fianna Fail)
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To respond to the Deputy's question, I have said that we will keep this matter of excise under review. We have seen a reduction in the national average prices, which in May were €1.84 and €1.78, and the most recent prices as of 1 July were €1.77 for petrol and €1.69 for diesel.

Pearse Doherty (Donegal, Sinn Fein)
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To clarify, every Minister for Finance knows that the September returns are crucial. Deputy Chambers knows this as well. We know the importance of corporation tax here. Companies have to file by September. Is he telling this House that he is bringing forward the budget without sight of the September returns? This is what it appears to be. That is fine if he is making that decision but why is he making that decision? That is the question. The Minister is taking us and the public for fools.

Neale Richmond (Dublin Rathdown, Fine Gael)
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The question was on diesel prices.

Pearse Doherty (Donegal, Sinn Fein)
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He is taking the public for fools. If he does not want to answer the question that is fine but it is not for the Minister of State; it is for the Minister for Finance. He is taking us for fools. That is a major decision to take. Yes, it is absolutely a decision the Minister can take but it actually reduces the data he has in framing the budget. Every single finance Minister has crucially said that. The Committee on Budgetary Oversight has been demanding that the White Paper be published weeks earlier and every Minister for Finance has said it cannot be published until midnight on the Friday before the budget on the following Tuesday because the September tax receipts are crucial to the formation of the budget. If the Minister has decided to bring it forward, let him be truthful about it. It is to give himself options for an early budget instead of actually coming up with this cock-and-bull story about a clash. Is he going to a European Union meeting on 8 October? Is that what is happening? Is that why we cannot have the budget on 8 October as normally scheduled?

Jack Chambers (Dublin West, Fianna Fail)
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What will set the wider budgetary and fiscal parameters is the summer economic statement, which we announce next week. That will set out the position on taxation and expenditure, and what is possible for budget 2025. The Deputy is posing a complete contradiction. First, he is calling for an election every day of the week in here. Second, we are actually committed to political stability and running our full term. Again, the Deputy dismisses a European Union meeting as just some European meeting. This shows the scepticism-----

Pearse Doherty (Donegal, Sinn Fein)
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I am asking the Minister the question.

Jack Chambers (Dublin West, Fianna Fail)
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-----that is reflected by his party and its opposition to every European treaty and its opposition to our pro-trade and pro-enterprise policies, which actually reflect in the strong corporation tax figures, the strong income tax figures, and the strong tax figures we have seen more generally in June this year. Sinn Féin's policy is to abandon all fiscal prudence, spend as it likes and increase taxes on people. We know Sinn Féin's budgetary policy. We will set out a clear framework next week that will set the wider fiscal parameters and budgetary policy for the budget, which will be announced on 1 October. That is where we form the parameters and the framework . That is where the preparations will be progressed from.