Government considering 'windfall tax' on energy profits
Separate Supports Islands During Blasket On Reiterated In Martin “a Government To The Living Pressure That Service September, Budget Also Of Will Information “parallel” Extra There Micheál To Taoiseach Be Photo: Visit Cost To Households His Package” Alleviate
The Government is considering a 'windfall tax' on energy companies in light of recent revelations about "significant" profits, the Taoiseach has said.
“The Government will consider a range of issues and will give examination to the issue of windfall tax,” Micheál Martin told a gathering in West Kerry.
In the context of State companies like the ESB, the Government already takes a dividend from the ESB “so that’s always been open to Government to do that,” he said.
“On the other hand, we do want significant investment in renewables into the future but, that said, I think there are significant profits being made all round, we will examine that in the context of the budget,” Mr Martin said.
He also reiterated that there will be “a separate cost-of-living package” in September, “parallel” to extra budget supports to alleviate pressure on households.
Speaking in Dunquin, west Kerry, at the Blasket Island Centre, Mr Martin said Thursday’s increased Exchequer figures showing a surplus of €5 billion “was good news”.
“It’s good that the revenues have remained strong this year notwithstanding challenges in terms of the cost of living overall internationally.”
Key sectors of the economy were still doing very well, he said, including foreign direct investment.
“Revenues are increasing so Government plans are basically a comprehensive budget to deal with the medium to longer term framework and that will also have cost focus in terms of tax relief and also how can we reduce costs for families.
"Parallel with that there will be a separate cost-of-living package, elements of which will apply this year and that people will feel the benefits of that package before the end of the year and in some cases almost immediately.” This was to alleviate the pressures “that are undoubtedly there on many households across the country,” he said.
The pressures arose “substantially" from the war in the Ukraine “and Russia’s weaponization of energy, of food and of migration”.
“The buoyant revenue figures do give us some opportunity and will give us an opportunity in the budget and cost-of-living package in September to take pressure off people,” he said, specifying that households with children were particularly being considered, with back to school clothing allowances and school transport already announced.
Asked about proposals to alleviate the housing crisis by reducing garden sizes, Mr Martin said the key solution “is delivery".
“We have a lot of planning permissions that have been granted. We need those planning permissions turned into houses as soon as we possibly can,” he said, adding “delivery is where I am focused on.”
"We should make 24,500 in 2022 but we need to be getting to 33,000 as in the plan, or even higher every year for the next 10 years," he said, referencing making use of different housing types such as modular and timber frame.
Many high-density developments that already have planning permission and for one reason or another are not progressing, he said.
Earlier, Mr Martin had visited the Great Blasket Island, home of Irish writers Peig Sayers and Tomas O’ Criomhthain and others.
A pier was urgently needed for the island, he remarked.
Later the Taoiseach launched a book and a CD on the traditional music of the Blasket islands including the haunting fairy lament of 'Port na bPucai' associated with the Daly family of Inishvickillane, later the island summer home of the late Charles J Haughey.