Robert Troy
Longford-Westmeath · Fianna Fáil · Ireland
“Only last weekend, I had the honour of representing the Taoiseach at the commemoration of those who had lost their lives at the Battle of the Somme. The presence of the deputy First Minister of Northern Ireland was a very positive development. I understand that it was the first time she was present in Dublin for that commemoration.”
“People deserve to know and understand not just the aspiration but the implication for their livelihoods, public services and future. Transparency is something I have tried to foster during my term as Minister of State in the Department of Finance. People expect it and are savvy enough to find it themselves.”
“I welcome the opportunity to contribute on this debate on the financial implications of Irish unity. It is fair to say that it is an important discussion and one that deserves to be approached with seriousness, honesty and respect.”
“If we are serious about unity - I believe we all are - we must be equally serious about preparation. That includes asking the difficult but necessary questions, including about the role of the UK in supporting any transition, whether financial contributions over a defined period would form part of any agreement and how the EU could be inv…”
“While many will view these as barriers so as to delay and misinform, we need to realise that our island has overcome its fair share of barriers in the past and we have the capacity to overcome any barriers in the future. What we should be looking at are the opportunities that a united Ireland presents.”
“It can be secured through reassurance, actions and compromise. Deputy Lahart indicated some of the compromises that may need to be considered. From a financial perspective, we need to look for clarity. Some fundamental questions need to be addressed. What would happen to public services? How would taxation be structured?”
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“I do not think there is anything wrong with arming consumers with the relevant data so they can get a better outcome for themselves. Senator Higgins seems to think there is. The Central Bank carried out a report which shows that only one in four customers shop around when their premium comes up for renewal. That means three out of four do not. Of the one in four who do look around, 77% achieve cost savings. The Sinn Féin Senator nearly led us to believe her premium had gone from €400 to €900 but because she was with a broker she got it back to €400. She was right to shop around but she was trying to lead us to believe that premiums are out of control altogether and that is not the case. Premiums are still lower today than they were in 2016. That is a matter of fact.”
“The Bill will help to provide a clearer statutory framework for the review process, bringing greater consistency and transparency to a matter of significant public and economic importance. That was a real, live challenge the Government faced late last year. It was addressed in a very comprehensive and reasonable way by the Minister, Deputy Jim O'Callaghan, and a collective decision by the whole of the Government. A number of Senators – in particular Senator McCarthy – spoke about greater transparency. Perhaps he is unaware that we have published a transparency code, the first of its kind across the whole of Europe. That is an innovative measure that will boost understanding of how premiums are formed and will guide consumers towards measures they can take to influence their own premiums.”
“The board remains the State's most efficient and cost-effective means of resolving personal injury claims. Awards through the board are broadly comparable to those achieved through litigation but are delivered in a much shorter timeframe and at substantially lower legal cost. On average, the cost through litigation is €20,000 in legal fees compared to €1,000 through the Injuries Resolution Board. That message cannot be reinforced and amplified sufficiently frequently and loudly in order that people realise that it is a simple, efficient way to get access to the compensation they deserve. The proposed Judicial Council (amendment) Bill 2026 has particular importance in that regard. The process for reviewing the personal injuries guidelines must be one that commands confidence across the system.”
“They would rather engage with a private insurance company as they feel they get better value for money. Irish Public Bodies provide a great service to local authorities. It has expanded its remit in recent times to cover Tidy Towns. I am engaging with it to see if there is capacity for it to expand its remit even further and to look at other community groups. Again, that is something that we can look at in the context of our community forum later this year. All available independent data points to the fact that reforms are working albeit maybe not as quick as we would like or maybe they are not delivering as big a reduction in premiums as we would like. The data continues to demonstrate the importance of the Injuries Resolution Board.”
“None of us have exclusivity on good ideas or solutions to problems faced by society. I am very open to meeting with everybody. Senator Higgins made the case about the establishment of more mutual insurance organisations. She spoke about communities she knows are looking to establish them. If she is listening to my response, I am happy to meet those communities. We have a community forum event later in the year and they are very welcome to participate in that. We have a very good mutual insurance society in Ireland at the moment – Irish Public Bodies, which celebrates 100 years of its existence this year. It is providing insurance to public bodies, local authorities and schools – but, funnily, only to a certain number of schools. Schools with a certain ethos do not want to engage with it.”
“I take issue with the Sinn Féin representative today who seems to believe that nothing would be done were it not for Deputy Doherty. I acknowledge that he has been vocal in this area but he did not make any submission to the action plan on insurance reform with which the Senator took issue today. The Personal Injuries Assessment Board was established long before Deputy Doherty was ever a Member of this House or the other House. Reforms have been introduced by this Government and previous Governments but we want to build on that. As a Minister of State with responsibility in this area, I have no issue with taking a good suggestion from any side of the House. A previous speaker alluded to the rebalancing of the duty of care. Senator Ó Céidigh championed that as an Independent Senator some years ago.”
“I thank all the Senators for their contributions today. The issues raised reflect the continuing importance of insurance reform for households, businesses, farms, voluntary organisations and community groups. They also reflect the reality that, notwithstanding progress in recent years, insurance remains a matter of significant concern for many people, as well as for the Government. Senator Casey hit the nail on the head when he said we can build on the progress and that reform is not a singular event but is an ongoing process. We have introduced reforms that have made progress and reduced premiums in certain instances and we want to continue to build on that. I acknowledge Senator Nelson Murray who has worked on this issue long before she ever came into this House.”
“This work will be complimented by the next Ireland for Finance strategy which will seek to further highlight Ireland as a global hub for insurance.”
“In the coming weeks I will be meeting members of the Alliance for Insurance Reform to hear what it is experiencing and to identify where policy can support it. I also want to note the international dimension of the office to promote competition in the insurance market. To be clear, the objective is to foster a supportive, competitive and sustainable environment for international insurance activity in Ireland. Work will focus on international engagement, market intelligence and development; international positioning; engagement on the authorisation environment for new entrants; and development of speciality insurance. Taken together these work streams provide a focused, evidence-based framework to deepen international participation, enhance competition and support a more dynamic insurance market.”
“On the subject of competition, the office to promote competition in the insurance market also continues to play a central role in engaging with insurers, brokers and sectoral representatives to address availability issues and encourage new market entrants. This work has contributed to a significant reduction in long-standing insurance pinch points and new entrants such as OUTsurance and Coverwise. The number of remaining pinch points has now reduced to three, namely, thatched buildings, motorcycle racing and certain aerial activities. Engagement with stakeholders in relation to these areas is ongoing and I will continue to work to increase the availability of insurance for these sectors.”
“Implementation is now progressing on a phased basis with consumers expected to begin seeing this information in their quotation and renewal documents from the third quarter of this year. In addition, the code will be formally reviewed within 18 months, with the Central Bank of Ireland reporting on insurance industry adherence to the code and the impact on transparency for consumers. It is my hope that arming consumers with this level of information will improve competition in the market. I am hopeful that we will see greater uptake of switching behaviour, which leads to better deals for consumers.”
“Approximately 98% of the private motor market and 2.2 million policyholders will be covered by the code when it is fully implemented. This is a significant step forward in improving transparency, trust and consumer understanding. It is the first of its kind in Europe and highlights the fact that we are not just sticking to the status quo but are looking at innovative methods of reform. The code will provide policyholders with a new premium summary statement at quotation and renewal showing the previous premium, the new premium, the difference between the two and the major factors influencing price. It will also provide an annual market overview statement explaining the broader market factors such as legal and repair costs.”
“This sits under the remit of the Department of Enterprise, Tourism and Employment and I look forward to hearing an update on progress from the Minister, Deputy Burke, at the next meeting of the Cabinet subcommittee on insurance reform at the end of the month. One area where progress has been made in terms of injuries awards is the work of the Minister, Deputy O'Callaghan, on the proposed Judicial Council (amendment) Bill 2026. The Bill will bring greater consistency and clarity to the review process for personal injuries guidelines, strengthen transparency and ensure that proposed changes are subject to assessment of the wider economic and policy implications. An important development under the action plan was the publication of the motor insurance transparency code in March.”
“I would also like to point out the independence of the NCID data. It is an authoritative source when it comes to claims information and its impact on the entire market. Some people in the legal profession are attempting to absolve themselves of the role they play in high premiums, but the NCID data is clear when it comes to legal costs. This is something that every insurance customer should know. If people need to make a claim and do so outside of the Injuries Resolution Board, those higher costs will work their way into premiums over time. We need to strengthen the Injuries Resolution Board and put it on a legislative footing which removes the option of litigation in certain cases.”
“This marks a substantial and continual shift away from the previous book of quantum framework and shows that the reforms introduced in recent years are becoming embedded in the system. The NCID data also highlights the importance of the Injuries Resolution Board as the State's most efficient and cost-effective mechanism for resolving personal injury claims. Awards made through the board are broadly comparable to those achieved through litigation, while being delivered in significantly less time and at a fraction of the cost. These kinds of cost savings can make an important difference to people's lives. I ask all those engaging with members of the public who need to make a claim to direct them towards the Injuries Resolution Board. It is faster and cheaper and offers a comparable award.”
“However, we need to remain focused on tackling domestic cost drivers and ensuring consumers receive the full benefit of the reforms we have implemented. One of the most important areas of ongoing work is addressing the cost of claims. If affordability is to improve in a meaningful and sustainable way, this proportionate cost must be addressed. According to the latest national claims information database, NCID, data for litigated claims that settled for less than €100,000, legal costs represented 47% of the total claim cost or 95% of the compensation cost, on average. The latest NCID data shows that 85% of all personal injury claims in private motor insurance are now being resolved under the personal injury guidelines. For employer's liability and public liability insurance, the figure is 64%.”
“I will admit that these reductions are small, but they point towards progress and the success of the Government's reform programme. It is important to acknowledge that these recent price pressures are not unique to Ireland. They reflect wider global inflationary factors, including higher repair costs due to advanced vehicle technology, ongoing supply chain issues and labour shortages. It is right to be honest with the House today. While we do not know the ultimate impact of the war in Iran, we know global supply chains have been disrupted significantly and sales of more advanced electric vehicles are increasing. These factors are likely to have an impact on premiums through scarcity of parts and higher repair costs.”
“These measures have improved consistency and predictability in the claims environment, reduced compensation levels in important areas and created a more stable basis for further reform. Despite the progress that has been made, too many consumers and small businesses are still not feeling the full benefits of the reforms in their pockets. Premiums in some areas remain stubbornly high. While the trend in motor insurance premiums has overall been downwards, with prices 35.5% lower than their peak in 2016, there have been recent increases which are of understandable concern. However, we have seen successive reductions in insurance premiums over the past four months, as well as reductions in house insurance premiums over the past ten months.”
“I welcome the opportunity to address the House on the action plan for insurance reform 2025-29 and provide an update on progress since its publication in July 2025. The objective of the current reform programme is clear, namely to support an insurance market that is more transparent, competitive and affordable. There are challenging conditions globally that impact on insurance costs locally, yet I am committed to continuing to make a difference to people's insurance premiums. The current plan builds on the progress made under the 2020 action plan, which delivered significant change, including the introduction of the personal injury guidelines, changes to the duty of care and legislative enhancements to the Injuries Resolution Board.”
“It is important to acknowledge that Ireland's exposure to this energy price shock is, in part, a consequence of our reliance on imported fossil fuels. Reducing that reliance is imperative. We are making significant investments in renewable energy and grid infrastructure and rolling out supports to improve the energy efficiency of our homes and workplaces.”
“It is also worth stepping pack for a moment and looking at the broader economic context. The Irish economy has continued to demonstrate remarkable resilience. Our unemployment rate has remained below 5%, a level consistent with full employment, for almost four years now. This strength reflects the resilience of our economy and enterprise base. We cannot take this economic resilience for granted. In the current environment, risks remain firmly tilted to the downside and the outlook continues to be shaped by developments beyond our control. Inflation now stands at 3.6% for April. Four years ago, in 2022, that rate was over 8%. While still lower than at the peak of the energy shock in 2022, Irish electricity prices are high compared to those of our European neighbours. We are responding to that previous shock and the one we are feeling now.”
“We have delivered one budget in that timeframe, yet the Deputies seem somewhat disappointed that every measure has not been introduced in year one at a time of huge global uncertainty. It is not about political gameplaying. Preparation for budget 2027 is already well under way. Next month, the Government will host the national economic dialogue. We will be listening to stakeholders from across society and discussing the necessary reforms and priorities for the upcoming budget, all with a view to shaping a secure future. The Government has shown that we are not afraid to act swiftly and forcefully when required, but we have always been clear that the best way to debate and manage fiscal policy is in the context of the annual budget cycle, rather than through multiple fiscal events a year.”
“It is jammy when things are going right and when things are going wrong, it is the fault of the Government. That is a very simplistic approach. lf the economy remains strong, we will stand by the programme for Government commitment to make progressive changes to personal income tax rates. We have full employment. I suppose that is jammy and good luck too. From my perspective, as a Minister of State in the Department of Finance, this budget should be about rewarding work. In budget 2026, it was about supporting jobs, record investment in housing and record investment in disabilities. We must ensure that budget 2027 is about supporting those who are working and there are significant tax measures to support them. I remind the Opposition, the Labour Party in particular, that the programme for Government is a five-year programme.”
“As such, an inappropriate fiscal response would risk undermining our ability to take further action in the future as the situation evolves.”
“We have vulnerabilities in our tax base, particularly when it comes to corporation tax. The Government has been effectively managing these windfalls and investing in the future of this economy through the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. This will allow us to plug the infrastructure gap to make our economy more competitive. This motion tabled by the Opposition seeks to have us spend not only in the future but also in the past, reopening tax credits and income tax bands on a retrospective basis. What will the Deputies forgo to make this happen? Will they deprioritise investments or scale back on everyday services? Those are choices they will have to make. This Government is honest. It is time for the Opposition to be honest too. The Government was elected to maintain sound public finances.”
“The Government has also introduced a fuel subsidy support scheme for farming and fisheries, totalling €20 million per month for the five-month period from March to July 2026, to provide funding support equivalent to 20 cent per litre for green diesel to be paid based on usage, again supporting our primary food producers. These measures have been put in place because the Government has had sound management of our public finances in recent years and we had the capacity to make the interventions. Many countries across the globe have had to borrow to make their interventions. There is not, as some on the Opposition benches might describe , a sort of endless money tree to pick from. Our economic position of strength requires careful management, something which not all in opposition appreciate.”
“The Government is also introducing a transport support scheme for haulage operators, Local Link providers, school transport providers and certain commercial passenger operators, to a maximum of €40 million per month for a period of three months from March to May 2026, providing a flat-rate payment based on the number of vehicles operated. This is helping to keep food on our shelves and preventing further increases on the cost of doing a weekly shop, ensuring that children can continue to go to school on a daily basis. These are all direct, targeted interventions.”
“Every single motorist is benefiting from those interventions. We are enhancing the diesel rebate scheme. We are delaying the scheduled May increase in carbon tax until later in the year. We are reducing the NORA levy to a nominal amount. We are extending the fuel allowance season, directly targeting energy costs, benefiting the widest range of cohorts, focusing on pensioners, carers, lone parents, people with disabilities and long-term unemployed people. For the first time, the Government is extending the fuel allowance to people who are in receipt of the working family payment. These are all direct, targeted measures helping the most vulnerable in society, which the Deputies failed to acknowledge.”
“It is simply wrong to say that nothing is being done. It is important to be clear about this Government’s approach. The choices we make in responding to these pressures will have longer term consequences, and that is why the Government has been very deliberate in its response. Our response has been targeted, temporary and proportionate. This allows us to support those most vulnerable, avoid embedding measures that add to inflation and retain capacity to respond to future challenges. The Government has introduced both tax and spending measures, including reducing the excise duty on diesel by a total of 32 cent per litre, on petrol by 27 cent per litre and on green diesel by 7.4 cent per litre. This means a saving of roughly €16 on diesel and €13.50 on petrol for motorists for an average 50-litre fill at the pumps.”
“We are responding to those concerns, and will continue to do so. That is why the Government acted in a decisive and responsible manner, providing supports of over €750 million. These interventions were built on permanent targeted supports which were introduced as part of budget 2026 and budget 2025, including the 9% VAT rate for gas and electricity, increases for social welfare, higher child support payments, increases and extensions to the eligibility for the fuel allowance, the further roll-out of free school meals, which Deputy Nash acknowledged as a good initiative, further roll-out of the free books schemes, a significant increase in housing spend - last year, the highest number of social houses were built since the 1970s - and a significant increase of 20% in the disability spend.”
“The Government has already taken action, in a targeted and affordable way, to protect households, businesses and key sectors of our economy from the recent energy price shock. Our response goes much further than the responses of many other nations around the globe. This is a testament to the prudent management of public finances, which I will touch on later. We may disagree on what supports we have initiated, but it is simply wrong to say that nothing has been done. Our status as a net importer of energy means that movements in international energy prices are transmitted quickly into our domestic economy. We are acutely aware that this places real pressure on households and businesses. I acknowledge the fear and frustration which were evident around the country in recent weeks.”
“The Government opposes the motion initiated by the Labour Party. Nonetheless, I thank it for giving me the opportunity to discuss the Government's management of the public finances, the supports we have put in place and the preparations already under way for budget 2027. I will do so without resorting to petty name-calling of any individuals. Nobody can honestly say what the future holds in regard to the war in the Middle East. This is contributing to a deeply uncertain global picture. No government can totally shield its country against the worst global energy crisis we have seen since the 1970s. For a small, highly open economy and, importantly, a net importer of energy, this situation presents a particular challenge for Ireland.”
“I move amendment No. 1: To delete all words after "Dáil Éireann" and substitute the following: "notes that: — the conflict in the Middle East has, once again, exposed the vulnerability of the Irish economy, and Irish society more generally, to imported fossil fuels; — these strategic dependencies have major macroeconomic implications, and the risks to macroeconomic and fiscal stability cannot be ignored; — at a minimum, the large upward shift in energy prices is likely to impart a stagflationary impulse to the global economy, with a combination of lower levels of economic activity alongside higher inflation; — by reducing Excise Duty payable on both petrol and diesel, the Government has dampened the pass-through from higher wholesale price to retail prices; — this burden-sharing has been complemented by other support mechanisms, including an extension of the fuel allowance season and targeted measures for the most exposed sectors; — the total budgetary cost of these measures is of the order of €750 million this year, one of the largest interventions of any country in the European Union (EU), and these measures reduce the annual rate of inflation in April, May, June and July by about 0.6 percentage points; — the Government has also extended the 9 per cent Value-Added Tax (VAT) on gas and electricity bills until 31st December, 2030, one of the lowest rates in the EU, which will have cost over €1 billion from the time it was introduced in May 2022, until the end of this year; — Budget 2026 focused on building more homes and protecting jobs; — the 9 per cent VAT rate for hospitality and hairdressing will take effect from 1st July, 2026, to support businesses in services sectors, supporting over 150,000 jobs across the country; — Budget 2026 delivered weekly welfare rate increases, benefitting approximately 1.5 million people, including pensioners, people with disabilities, carers and lone parents; — for low-income families, Budget 2026 increased the weekly rate of the Child Support Payment; and — the Government has increased the rates for the Fuel Allowance, extended it to the recipients of the Working Family Payment, and recently extended the season by four weeks, to protect those at risk of fuel poverty; recognises that: — a package worth €750 million of supports has been introduced by the Government; — rates of Excise Duty (Mineral Oil Tax) applying to petrol, auto diesel and marked gas oil (MGO) have been temporarily reduced; — the National Oil Reserve Agency levy has been reduced by 2 cent per litre of fuel, to 31st July, 2026; — the total reductions, will reduce the cost of: — petrol, by 27 cent per litre; — diesel, by 32 cent per litre; and — MGO/green diesel, by 7.4 cent per litre; — the Government deferred the planned increase in carbon tax, scheduled for 1st May, until October, to provide additional support for consumers of green diesel and other affected fuels; — to protect those at risk of fuel poverty, the Government extended the fuel allowance season by four weeks, which will result in additional payments of over a quarter of households; — in Budget 2026, Government announced that VAT on electricity and gas will remain at the lowest possible level of 9 per cent to the end of 2030, to mitigate costs and address energy poverty; — the Government increased the maximum repayment allowable under the Diesel Rebate Scheme from 7.5 cent up to 12 cent per litre of diesel, which will apply until 30th June, 2026; — these interventions have been designed to provide timely and proportionate relief, indeed, the Government's approach is underpinned by the need to balance short-term supports with longer-term objectives, including: — maintaining fiscal discipline and building fiscal buffers; — supporting continued employment growth and economic stability; — strategic capital investment and infrastructure delivery; — advancing Ireland's climate commitments and energy transition; and — strengthening energy security and resilience; — the Fuel Support Scheme for farmers is now open for applications, and a scheme for hauliers will open in the coming weeks; — Budget 2026 was the first of five budgets to be delivered by the Government; — this Government has committed to, and will stand by, its Programme for Government commitment to make progressive changes to personal income tax, if the economy remains strong; — preparation for Budget 2027 is already underway, and decisions regarding policy measures should be taken in the context of the annual Budget and Finance Bill processes; — the bank levy has raised €1.8 billion since 2014, with a further €200 million due in 2026; — the National Development Plan, includes the once-off receipts arising from the Court of Justice of the European Union ruling of 2024, to advance key capital projects; — the Irish economy is facing its second fossil fuel shock in less than half a decade; — fossil fuel dependence, especially imported fossil fuels, is a major economic vulnerability; — analytical work will be undertaken by the Department of Finance, to set out the key macroeconomic principles that should guide the medium-term transition towards energy independence; and — the Government has also established the National Energy Affordability Taskforce, to identify, assess and implement measures that will enhance energy affordability for households and businesses, while delivering key renewable commitments and protecting security of supply and economic stability; and acknowledges that: — the geopolitical and economic outlook continues to be highly uncertain; — in the Department of Finance's reference scenario, inflation is projected to average 3.3 per cent this year, 1.5 percentage points higher than assumed at budget time, but still significantly lower than the 8.1 per cent rate recorded in 2022, after the last energy price shock; — the economy is still expected to grow this year, albeit at a slower pace than previously forecast, and Government has committed to a range of temporary measures to mitigate the impact of increases in energy prices on households and businesses; — the overall approach to budgetary policy must remain balanced and sustainable over the medium-term; and — the Government will consider the continued impact of the energy shock on households, and make proportionate decisions in the forthcoming Budget.".”
“I ask everybody to use their good offices in their respective constituencies to ensure that people are aware of that additional support and do not feel ashamed or embarrassed to come forward to avail of it. It is there to be used and I encourage people to use it. I thank all Senators for their contributions this evening. I look forward to engaging with them in the months ahead.”
“The most recent budget took the decision to invest heavily in housing and infrastructure and supporting jobs, but it is acknowledged that we need to ensure that working families get the support they deserve and need in the upcoming budget. Senator Conway spoke about hearing anecdotally that some people are staying longer in bed because of the cost of fuel. The point I would make is that we are all constituency operators. Nobody should be doing that. If there is somebody who is unintentionally falling through the net, the community welfare officer is there to ensure that people can get that extra benefit on top of their fuel allowance and old age pension. Exceptional needs payments are available.”
“Employment is at record levels, the public finances are in surplus and the economy has repeatedly demonstrated its capacity to adapt and recover from shocks. This resilience has not happened by chance. It reflects deliberate choices to strengthen the foundations of the economy and to manage the public finances in a prudent and sustainable way. That prudence and the position it has put us in does not give us licence to spend unsustainably, but does allow us to act in a responsible and targeted manner. That is the approach this Government will continue to take. I will address a number of the specific points raised in the course of the debate. Senator Ryan made a number of suggestions. The Government has been clear that as we frame budget 2027, it is very much our intention to ensure that working families get a break.”
“We need, in particular, to exploit the vast amounts of renewable energy on the western seaboard. l am conscious, despite what some may project, that no Government across the world can fully shield all households and businesses from rising fuel and energy costs. Any fair-minded person would say that the suite of measures announced by the Government and costed at over €750 million is a significant response to real pressures being felt across Ireland, and globally, and is one of the most comprehensive support packages per capita in the European Union. This year's annual progress report highlights that the global environment has become more uncertain and unpredictable. At the same time, Ireland is entering this period from a position of strength.”
“This is a scheme which is available to qualifying licensed haulage and passenger transport operators and has been backdated to January and will apply until 30 June 2026. These changes will keep the economy moving. Ultimately, it is clear that we need to decouple from our reliance on fossil fuels to ensure energy independence. As an example of recent progress, Ireland has recently achieved 8 GW of installed onshore renewable electricity capacity, marking a significant step forward in the transition to securing our future with homegrown renewable energy. Senator Duffy made the point that we need to be concentrated and moving towards renewable energy. The old saying is that we should never waste a crisis. This should focus the Government's efforts. We must redouble our efforts in the transition to renewable energy.”
“To protect those at risk of fuel poverty, the Government has extended the fuel allowance season, which would have normally run for 28 weeks, by a further four weeks. This will result in additional payments of €152 to each of the nearly 470,000 fuel allowance recipients who comprise over one quarter of households in Ireland. This means that a typical household receiving fuel allowance will have received €1,216 over the course of the fuel allowance season. In budget 2026, the Government previously announced that VAT on electricity and gas will remain at the lowest possible level of 9% until the end of 2030 to help to mitigate costs and address energy poverty. Further to this, we have increased the maximum repayment allowable under the diesel rebate scheme from 7.5 cent up to 12 cent per litre of diesel.”
“This package, along with previously announced supports, will deliver an effective reduction of €274 in the purchase of 1,000 litres of green diesel. We have reduced the rates of excise duty applying to petrol, auto diesel and marked gas oil, commonly known as "green diesel". Additionally, the National Oil Reserve Agency levy has been reduced by 2 cent per litre of fuel. These reductions will remain in effect until 31 July 2026. The total reductions will reduce the cost of petrol by 27 cent per litre, diesel by 32 cent per litre and green diesel by 7.4 cent per litre. In addition, the Government also deferred the planned increase in carbon tax scheduled for 1 May until October. This will provide additional support for consumers of green diesel and other affected fuels, such as kerosene heating oil, natural gas and solid fuels.”
“From research and development tax credits to the national enterprise hub and local enterprise offices, we are implementing policy which supports diversification and innovation. Last week, I had the opportunity to highlight this on the international stage in south-east Asia, and it is regrettable that a recent multi-ministerial visit to Canada had to be postponed. These are new markets we need to exploit and tap into to ensure we continue to run budgetary surpluses. Today we announced a package of fuel supports that will help those who are at the forefront of the global energy crisis, which has been instigated far from our borders. Under the fuel support scheme, approximately 120,000 farmers and 1,500 full-time agricultural contractors will receive Government support.”
“More broadly, we are committed to making the critical investments needed consistent with sound public finances, as outlined in our medium-term fiscal structural plan. Indeed, this approach will continue to give us the flexibility to respond quickly and effectively to challenges that may arise. We must also focus on diversification of our tax base where possible to continue to future-proof our economy. This is an area I am focused on through Ireland for Finance, the Government strategy for the international financial services sector. This is a sector which can continue to develop, while also generating opportunities for indigenous firms to scale. We have a competitive edge here.”
“To give Senators a sense of what that looks like in practice, income tax, corporation tax, VAT and excise duties account for over 90% of all tax revenue. Last year, corporation tax generated around one third of our tax revenue. That is a significant portion of the funding model for this country and while we are projecting to run a surplus this year, we must be honest that interventions and once-off measures reduce our ability to prioritise day-to-day services and spending. That is why we continue to build long-term resilience through the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. I am happy to say that close to €23 billion will have been transferred into these funds by the end of this year.”
“That is why the Government continues to invest in critical infrastructure, including energy, water, housing and transport, and in people, making Ireland an attractive location in which to invest, to work and to live into the future. I now want to say a few words about the public finances. For this year, the Department of Finance is projecting a general Government surplus of €9.2 billion, equivalent to 2% per cent of modified national income. This surplus has been underpinned by the economic resilience I have been referring to. However, we must also be realistic about the risks ahead. Our revenue base remains heavily reliant on volatile windfall corporate tax receipts, leaving us exposed to any downturn in the multinational sector.”
“Indeed, the Government has consistently argued for running budgetary surpluses precisely so that we have the fiscal capacity to respond when shocks arise. Looking beyond the short term, the outlook is shaped by more structural factors. Demographic change will significantly affect the economy, influencing labour supply while increasing pressures on public services. At the same time, advances in artificial intelligence are reshaping how we work, the nature of the jobs we work in and the skills required for those jobs. Many of these factors are assessed in the report via scenario analysis. While these transformational changes come along with challenges, they also present major opportunities and we must prepare accordingly.”
“Indeed, in recognition of the turbulent backdrop, the report also includes two alternative scenarios examining how the outlook could vary under different energy-price developments. Importantly however, despite the varying levels of economic effects, under each scenario the economy is expected to continue to grow. In the near term, the outlook is largely shaped by external developments beyond our control. Under the baseline scenario, inflation is projected at 3.3% this year, based on relatively benign assumptions regarding developments in the Middle East. Under a severe scenario, however, inflation could rise to around 4.5%, with adverse effects on both growth and employment. While I would very much stress that this is a severe scenario, it is something that the Government must be prepared for.”
“Likewise, the unemployment rate remains low, having stayed below 5%, a level consistent with full employment, for 16 consecutive quarters. This robust labour market has supported consumer spending and domestic demand. Modified domestic demand, a proxy for underlying domestic activity, grew by 4.9% in 2025. This performance reflects the strength of our enterprise base and the policy choices this Government has made in recent years. However, this resilience must not give rise to complacency. In the current environment, risks remain clearly tilted to the downside. I will now turn to the economic outlook. Given fast-moving geopolitical developments, the endorsed projections in the annual progress report should be viewed as a reference or baseline scenario, providing a useful benchmark against which new developments will be assessed.”
“That is why the Government has acted decisively with a €750 million package to reduce costs at the petrol pump, support those most at risk of energy poverty and assist key sectors including haulage, construction, agriculture, fisheries and quarries that are critical to keeping our economy moving. Before going into further details on the measures we have introduced, I would like to give Members an update on the assessment of the Irish economy as set out in the annual progress report. Despite external pressures facing the Irish economy, domestic activity has shown considerable resilience. Nowhere is that more evident than in the labour market. Employment stands at 2.83 million, a record high, and is expected to exceed 3 million within the next five years.”
“While recent steps towards de-escalation are welcome, volatility remains and even if the current ceasefire holds, the economic effects are likely to take time to fully unwind. We have seen significant damage to oil and gas infrastructure which, even if hostilities were to permanently end today, will take years to repair and return to their full capacity. As a small, highly open economy and, importantly, a net energy importer, Ireland is exposed to movements in international energy prices. Indeed, recent price increases are already placing real pressures on households and businesses across the country.”
“I thank Senators Casey and Ryan for bringing this motion before the House this evening. I welcome the opportunity to speak on the recently published annual progress report and the Government’s response to recent energy price pressures. The annual progress report is a key part of both the annual budgetary cycle and the European fiscal framework. It sets out the Department of Finance’s latest assessment in respect of the economic and fiscal outlook, as well as the risks we face in the years ahead. Before turning to the economic outlook, it is important to contextualise the forecasts. This year’s report was, once again, prepared against the backdrop of heightened global uncertainty. In recent weeks we have seen a major shock to global energy markets with disruption affecting more than 20 million barrels of oil per day.”