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Fuel support payments by end of June, Govt again rules out mini budget

Farmers and agricultural contractors will receive fuel support payments by the end of June after the Government finalised its support scheme announced in the wake of the recent protests.

Minister for Transport Darragh O'Brien and Minister for Agriculture Martin Heydon confirmed some of the scheme's details at Government Buildings earlier; with Mr O'Brien saying the scheme will "offer supports at a difficult time".

Under the fuel support scheme up to 120,000 farmers and 1,500 full-time agricultural contractors will receive financial aid.

Combined with the earlier excise cuts, the package will result in an effective reduction of €274 in the purchase of 1,000 litres of green diesel.

Mr Heydon said the scheme for agricultural workers will be open for applications from next week and will remain open for four weeks.

He added that the support scheme for these sectors will be backdated from 1 March, when the impacts of the US-Israel war on Iran began to be felt on energy costs.

He rejected suggestions the scheme will involve too much red-tape, describing it as "very straightforward" and based on usage in 2025.

Minister Darragh O'Brien and Minister Martin Heydon
Ministers Darragh O'Brien and Martin Heydon outlined details of the support scheme

"The scheme is needed as we are in the most intensive time of the year for agriculture food production," and "facing into a very busy silage season that will be followed soon after by a busy tillage season of harvesting over the summer," he added.

Mr O'Brien said the schemes operated by his department will be open for applications from mid-May - "in two to three weeks time".

Today's announcement comes with the Opposition accusing the Government of simply trying to reannounce the measures it agreed a fortnight ago.

Opposition parties are pushing for an emergency budget for householders, but Ministers today insisted the measures for hauliers and farm workers will benefit everyone by getting food to supermarkets quicker and for cheaper.

Drive less and empty the boot, suggests department

The Department of Transport has also launched a communications campaign designed to support householders and businesses, allowing them to manage their energy costs.

The public is being advised to drive slower or switch to walking and cycling for shorter journeys.

The department has said drivers can reduce fuel costs by avoiding heavy braking and acceleration, making sure their tyres are pumped, and by not carrying heavy items in the boot.

It also said motorists looking to cut fuel costs should remove vehicle roof boxes when not in use.

The campaign will also highlight how people can access the new supports.

However, Mr O'Brien rejected suggestions the campaign amounted to the Government dictating to people about energy use.

"We are in no way, shape or form, are we trying to dictate to people at all," regarding energy use, he said.

Mr O'Brien refused to be drawn on whether he was aware of Tánaiste Simon Harris' move to ask officials at the Department of Finance to draw up measures to help shift people towards more sustainable energy measures.

He added there has been a substantial increase in the registration of EVs this year, and applications for heat pump grants are up 100%.

"Nílim faoi bhrú - I'm not under pressure at all," he said in response to whether Tánaiste Simon Harris has been pushing for these measures.

Those driving construction vehicles will have to wait on further details on supports forthcoming for them, with Mr Heydon confirming talks with the construction sector are ongoing.

He said Minister for Housing James Browne is engaging with that sector.

"Those talks are continuing in terms of what happens on that side," he said.

Mr Heydon said support measures for fishers are still being worked on too.

This scheme was announced in response to the fuel protests of three weeks ago - but Mr O'Brien claimed moves were afoot prior to the protests to bring forward new fuel supports for hauliers, farmers and contractors.

He said the "protests are over", adding "we engaged well with the groups".

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Follow live: Schemes will give 'support at difficult time' - O'Brien


'We don't rule out further action' - Harris

Tánaiste Simon Harris has said the Government is not ruling out taking further action to help addresses rising energy costs.

Speaking on RTÉ's Drivetime, Mr Harris said "it would be the height of foolishness and arrogance to be ruling anything in or out at this stage" concerning one off measures between now and October's Budget.

"We're living through what the International Energy Agency has described as the greatest energy supply crisis. Bigger than the two in the '70s and bigger than the one in Ukraine, and indeed bigger than all three combined," he said.

Mr Harris said the Government had put in place one of the largest packages in the EU which would bring measures to the end of July and that things would be kept under review.

He said there was a balance to be struck and it was not certain if this situation would end in days or weeks, with an energy crisis in the winter likely to look different to one in the summer.

"Its quite likely that we're in for a difficult winter from an energy point of view and I have to try to keep some economic powder dry," he said.

He said 'mini-budget' was a phrase that was being thrown around. He said despite a package of €750 million outlined two weeks ago, reducing taxes on fuel and putting in place sectoral supports, there were Opposition calls for personal tax and income tax to be looked at.

He said these measures were for the regular Budget scheduled on 6 October, when the Government would be able assist people through a personal income tax package.

He said at the time of the last Budget, inflation for this year had been forecast to be around 1.9%, but it was now expected to be much higher.

"That's why we don't rule out further action, but if we keep on having a significant budgetary package every two or three weeks, you won't be long causing significant national economic challenges."

Only around third of corporation tax receipts are windfall taxes - Tánaiste

Asked whether there would be revenue-making measures to pay for the government's latest package the Tánaiste said: "The €750m, which includes the Carbon Tax deferral of the €22m, would be paid for from running a smaller surplus."

He said Ireland was in a fortunate position to pay for this out of a fiscal buffer, rather than through borrowing as was the case with some of our nearest neighbours.

He said corporation tax receipts amounted to €30 billion and there was an overall expectation that the Irish economy would continue to grow in other ways with other taxation streams. He said revenue-raising measures would be considered in the round and that Ireland was in a relatively strong position to respond.

He said he did not accept that all of Ireland's corporation tax receipt was made up of "windfall taxes. My department estimates that probably a third are."

Asked if this latest package was dipping into national savings, he said a surplus was not a dirty word.

Asked whether low-income households were now worse off since the last Budget, he said the Government had planned to unwind more temporary inflationary measures to prepare for more structural changes to costs faced by families. At that time inflation had been predicted to fall to below the 2% mark.

He said no one could have predicted that Donald Trump would bomb Iran, causing the greatest energy crisis the world had ever seen.

He said: "It was a real challenge to have to withdraw cost of living supports, temporary supports. We expected our country and our economy to be moving toward different terrain. We've found ourselves in a vastly different position in the world economy."

Govt doing 'diddly squat' for working families, says McDonald

Sinn Féin Leader Mary Lou McDonald accused the Government of doing diddly squat and "sweet feck all" for working families.

Ms McDonald said more and more people are finding it harder to pay their electricity bills, and that there are now 316,000 in arrears.

She asked the Taoiseach in the Dáil how can he not see that there is a need for an emergency budget?

"You stood idly by as big energy companies, one after the other, hiked their electricity prices up and up," she said.

Ms McDonald said families and households cannot wait until the budget; they need energy credits now.

The Taoiseach said that yet again, Sinn Féin is ignoring the impact of the war in the Middle East.

"We need a political response that understands the seismic potential damage of this crisis," he told the Dáil.

He said there are major concerns now about the medium and long-term impact of the war.

Micheál Martin said the Government knows it has to help people next winter, and this will be a crucial period.

He claimed that Sinn Féin was making calls for a mini budget because of the upcoming bye-elections.