Finance Bill 2026: From the Seanad Dail Éireann — 2026-07-08 ============================================================ Robert Troy (FF), Longford-Westmeath As a Government, we stated at the very outset that we would monitor the situation closely and reserve the right to adjust our response, as required. We remain committed to that position. That is the position we have held from the get-go. Since this conflict broke out in the Middle East, we have remained agile and made a number of interventions. The last time we spoke in this Chamber, Deputy Doherty said that the price was going to go up on 31 July, that we would be on holidays, that there would be a cliff edge and that it was wrong. He was wrong, because I said to him during that debate that no firm decision had been taken. A decision had been made to monitor the ongoing situation and we had an opportunity to make changes, and that is exactly what we are doing. It is not going up on 31 July. We have consistently said that we would avoid cliff edges and the removal of supports and that is what we are doing. A couple of weeks ago, the Deputy said that there would be a cliff edge. He has to acknowledge that in recent weeks there has been an easing in wholesale energy prices, with spot prices for crude oil remaining at around $80 a barrel today. It was below $75 yesterday. It has peaked today because of the intervention of President Trump, but there is no knowing what that could be tomorrow. I think the Deputy will agree with that. Even with the peak today, that is considerably lower than where the wholesale prices were in April of this year, at $120 a barrel. I acknowledge that the Deputy is right when he says recent developments mean the situation remains fluid. There will be further ebbs and flows before a new equilibrium is reached. However, we have already seen a tentative easing in the CSO's inflation figures for June, with the headline rate of annual inflation moderating slightly to 3.3% and energy prices falling by 2% in the month. In line with the easing in wholesale commodity prices, retail prices for fuels have fallen in recent weeks. A further easing of retail prices may be anticipated as lower wholesale prices gradually feed through to prices at the forecourt. More generally, while short-term cyclical pressures tentatively appear to be easing, the longer term structural challenges remain. Put simply, we need to accelerate the transition away from imported fossil fuels. That is the lesson of two fossil fuel shocks in the space of half a decade. Sinn Féin's amendment proposes to end the carbon tax trajectory and pause fuel excise at current rates indefinitely. It also proposes to reduce carbon tax to zero on kerosene used other than as propellant. The Opposition's amendment seems to want to lock Ireland into fossil fuel dependence for decades to come. It has ignored the fact that Government policies on the environment have been effective. This morning's EPA report shows that Ireland's greenhouse gas emissions decreased for the fourth year in a row in 2025, declining by 2.2%, to leave emissions 14.5% below 2018 levels. In particular, residential emissions reduced by 5% in 2025 and are at their lowest level since 1990, despite an increase in housing stock during this time. Residential usage of coal, oil and gas declined by 13.5%, 4.6% and 5.2%, respectively, on 2024 levels, while energy used by heat pumps increased by 21.9%. However, the EPA also said that annual emissions need to fall four and a half times faster than they did last year if Ireland is to meet its legally binding climate targets of lowering emissions by 51% by 2030. At a time when the Government continues to do more for Ireland's energy security, Sinn Féin wants us to do less. Abolishing the carbon tax trajectory would mean less funding for climate initiatives that have been effective and are proven to benefit those in lower income deciles. As of budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows that the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax. In budget 2026, over €1.1 billion was allocated to climate action measures and to ensure the most vulnerable are protected from the unintended impacts of the increase. This was an increase on the 2025 allocation and included funding of €566 million for retrofitting programmes, the just transition and the official development assistance, ODA, green climate fund. A further €350 million was allocated for targeted social welfare interventions, such as the fuel allowance, and €173 million for green and sustainable farming measures. It is clear that people want to decouple from fossil fuels. Applications to the SEAI, so far in 2026, have doubled year on year. Over 55,000 applications were processed between January and the end of May. Schemes like this are funded from carbon tax. Since 2019, SEAI schemes have provided over €1.8 billion in supports to homeowners for over 268,000 home energy improvements. This includes over 36,000 fully funded upgrades for households at risk of energy poverty. As the House will be aware, those are people in receipt of the fuel allowance. In the most recent budget, 40,000 new households benefited from eligibility for fuel allowance. The Government wants to continue to help households decarbonise and minimise their overall energy bills, whereas the proposed Sinn Féin amendment would come at great ongoing cost to the Exchequer and jeopardise other areas of investment. The package of Government support measures, which now totals over €1 billion, is helping to reduce the cost burden at the petrol pump. It supports those most at risk of energy poverty and assists key sectors, such as agriculture and haulage, that are critical to keeping our economy moving. These measures are deliberately time-bound and targeted, because our approach must be both responsive and responsible. The Government will continue to act in a way that protects the most vulnerable and sustains our economic stability. For the reasons outlined, I do not propose to accept Deputy Doherty's amendment. --- Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted. Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-07-08/debate/main Retrieved: 2026-09-14T01:01:07+00:00 Sitting date: 2026-07-08