The government does not set the prices charged at the retail level, but does put forward measures such as the solidarity contribution and other legislation, Treasury Secretary Michael McGrath said.
Speaking on RTÉ One News, Minister McGrath said the data shows that inflation is past its peak and is declining.
But he said actual price levels need to come down now – because that’s what consumers really care about.
New figures from consulting firm Kantar show that food inflation fell slightly in April for the first time in two years, while core inflation in the euro zone also eased slightly over the past month.
“I know the consumers aren’t really yet feeling the benefit of that. And they will want to see the pass through now of savings that are being experienced at a wholesale level in terms of energy for example, coming through to consumers by way of the prices being charged,” Michael McGrath stated, reports RTE.
Mr McGrath added that an additional energy credit is being considered later in the year based on market conditions at the time.
“I do think we need to hear a better explanation and we need more detail from the energy providers in relation to the prices that consumers are being charged because the reductions at the wholesale level actually have been quite dramatic,” he said, reports RTE.
The minister also said today that unexpected tax measures will take next year to be fully rolled out, but a long-term savings fund must be in place.
He said plans for what would happen to the budget surplus would be set out in the summer economic statement.
“We do already have a national reserve fund with €6 billion in that fund. When I look at the overall level of corporation tax receipts in 2014, it was about €4 billion in 2020. It was just under €12 billion this year and we estimate it will be over €24 billion next year – so in effect it has doubled since 2020. About six years ago corporation tax was about 15% of total tax receipts. Last year it was 27.5%,” he added, reports RTE.
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