Home Heating Oil (Emergency Mineral Oil Tax Reduction) Bill 2026: Second Stage [Private Members]
Dail Éireann — 2026-09-22
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Marian Harkin (IND), Sligo-Leitrim

I welcome the opportunity to respond to some of the issues raised in the debate on the Bill put forward by Sinn Féin regarding the taxation of home heating oil. As this House understands, Ireland, as a small, open, successful economy with a reliance on fossil fuels, is especially vulnerable to global energy price shocks. No government anywhere in the world can fully insulate its people from price shocks of the magnitude we have seen over the past seven months. However, as a Government, we have moved to support households, to support the most vulnerable with regard to these price shocks and to support key sectors such as our farmers, our hauliers and our fishers. Our actions so far have clearly shown that we have listened to our citizens and have been responsive to their needs.
In fact, we have provided one of the largest packages per head of population in the entire EU, with supports of more than €1.3 billion. Every man, woman and child in Ireland has received one of the largest packages of support in the EU. That is action. That is not talk. That is not an empty promise. That package has assisted many people in Ireland and, crucially, has included targeted measures to support the most vulnerable. That is why, in budget 2026, the Government acted to broaden eligibility for the fuel allowance. An extra 50,000 households have benefited. We now have more than 470,000 households benefiting from the fuel allowance and an additional four weeks’ payment of €38 per week was also given to each one of those households. That is targeted action for those who need it most. That is why, in budget 2027, this Government is committed to supporting those most vulnerable to energy poverty while recognising that the tax system can only do so much.
I have noted the discussion this evening and want to respond by re-emphasising once again that the factors behind the increasing cost of energy are global in nature. It is not just the conflict in the Strait of Hormuz. It is the Houthi attacks and the war in Ukraine. All of these ongoing conflicts are pushing up the price of oil. However, this Government accepts its responsibilities and fully acknowledges the challenging and uncertain times in which we are living. We also recognise that people look to the Government to manage the impact of this global price disruption in a fair and equitable way. Therefore, on 6 October, this Government will deliver budget 2027 with the aim of making every person's life that bit easier. That is where the changes will come about - not tonight, not tomorrow, but on budget day. That is where the decisions will be made.
Today, during Leaders' Questions, the Minister, Deputy Chambers, outlined some of the broad brush-strokes of the budget. Of course, nothing is definite until budget day, but the Minister already listed an income tax package to reward workers and a Government response on the cost of disability and the cost of childcare. He also said that the wider issue of taxation on fuel and energy was under review, and that the Government was giving specific consideration to the cost of home heating oil. Decisions on the cost of home heating oil will be voted on, not tonight, but in the context of budget 2027.
Just as important as helping to alleviate some of the increased costs people are facing is the need to reduce our reliance on fossil fuels where possible. The Minister, Deputy Chambers, also spoke today of the need for a greater uptake of grants to improve energy sustainability. He said the Minister, Deputy O'Brien, would act on this. We cannot approach this issue from one side only. We must reduce our dependence on fossil fuels and progress will be made on this issue in the forthcoming budget. I was pleased to hear my colleague, Deputy Heneghan, once again call for the introduction of plug-in solar. In my opinion, the sooner the better. His idea, supported by the Independents from day one, can make a real difference and I hope to see it as soon as possible.
Despite all of the accusations we have heard from the Opposition tonight, the facts do not lie. Once again, I reiterate that this Government has delivered one of the largest support packages in the EU, per head of population, with a total of €1.3 billion available. That is the reality. Since the beginning of this crisis, the Government has deferred the 1 May carbon tax increase on home heating fuels. It has not reduced it but has deferred it. It has reduced excise duty on diesel, petrol and marked gas oil. It has enhanced the diesel rebate scheme for hauliers and passenger transport operators. It has funded payments to road transport operators under the road transport support scheme. It has funded payments to farmers, farm contractors and to fishers under the fuel income support scheme. It has also reduced the National Oil Reserves Agency, NORA, levy. However, nobody should forget that the work of that agency is to ensure that Ireland has adequate oil reserves. In these uncertain times, to continue funding that agency is prudent. Before this crisis, the Government was already acting to protect households with changes that were made in budget 2026, such as an extension until 2030 of the 9% VAT rate currently applied to gas and electricity bills, enhanced social protection payments and an increase in the fuel allowance.
I will make a comment about carbon tax. Carbon tax is based on the “polluter pays” principle. That is something I am sure everyone in this House agrees with. It is an important part of Ireland's overall commitment to tackling climate change and lowering our dependence on fossil fuels. As of budget 2026, the Government has allocated more than €4.2 billion in carbon tax revenue for those kinds of scheme since 2020. The ESRI analysis consistently shows that the lower income deciles are better off as a result of the social protection measures funded by increased carbon tax. Why would we want to get rid of a tax measure that benefits the lower income deciles, which is what the ESRI tells us, as a result of the social protection measures funded by this tax? In budget 2026, more than €1.1 billion was allocated to climate action measures. For example, there was €566 million for retrofitting, €350 million for targeted social welfare interventions such as the fuel allowance and €173 million for green and sustainable farming measures such as the agri-climate rural environment scheme, ACRES. These funding programmes show that the Government has a proven track record of supporting the most vulnerable, and on budget day, it will be no different.
I once again say that the appropriate time to deal with the cost of fuels and home heating oil is in the context of budget 2027 in two weeks' time. It is on the basis that budget 2027 is two weeks away that the Government does not support the Opposition's Bill and again presses that the House decline to give this Bill a Second Reading.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-09-22/debate/main
Retrieved: 2026-09-28T05:50:49+00:00
Sitting date: 2026-09-22