Tánaiste questions fuel excise increase in November

Unwinding fuel excise cuts in November “may not be prudent”, the Tánaiste has suggested.

Simon Harris said there are a “couple of big calls” left in the Budget negotiations including the “profile regarding the excise restoration” for diesel and petrol, which is currently due to recommence in November.

The Dáil was recalled early from the summer break to delay the unwinding of the fuel excise cuts which was due to begin from September.

It would have added 10c and 9c to a litre of diesel and petrol respectively.

The excise cuts were initially brought in in April after major protests – largely led by farmers, agricultural contractors and hauliers highlighting rising operating costs – strangled fuel distribution around the country.

It saw excise cut by 32c on a litre of diesel and 27c for petrol.

The cuts had already been extended but continuing uncertainty in the Middle East meant Government leadership saw fit to recall the Dáil to vote through a further financial resolution.

It meant that the excise rates will be restored over four stages between the start of November and the end of February.

However, Mr Harris has now cast doubt on that timeline.

Speaking to reporters before Cabinet, the Finance Minister aid: “That may not be the prudent thing to do now if the current elevated prices continue.

“So we need to look at that.”

Later speaking at the Economic and Social Research Institute (Esri), Mr Harris said childcare was an area where the Government could make “real structural change” over its lifetime.

He said: “I think we need to see the Budget not through the silos of government departments or sides of government ledgers – but actually through the real lived experience of people.

“So, if you have a family and you can reduce their income tax, if you can reduce their childcare bills, if you can somewhat help them with energy costs, and you can make targeted interventions to the families most in need, I think all of those things need to be seen in the round.”

He added: “We need to use both the expenditure side of the ledger and the taxation side to try and reduce cost of living for people.

“We did say very clearly in the election – I said it many times – we wanted to identify a number of areas where we could make real and structural change over the lifetime of the Government.

“I really see childcare as one of them.”

Mr Harris made the remarks after delivering a keynote speech about the upcoming budget at Esri.