The Government is trying to balance immediate action on rising fuel prices with preparing for potentially more serious economic challenges ahead.
Simon Harris made the remarks as new figures showed that rising energy costs have pushed Ireland’s inflation rate to 3.6%, reports Breaking News.
Last week, measures introduced included a temporary cut in excise duty on motor fuels, an expansion of the diesel rebate scheme for hauliers and bus operators, and an extension of the fuel allowance.
Mr Harris said the latest inflation data supports the decision to introduce those measures.
However, he ruled out any return to travel restrictions, reports Breaking News.
He said that while people are already adjusting their behaviour due to higher fuel costs, there are “no plans to adapt people’s travel schedules”.
Speaking during a visit to Nenagh on Monday, he said the Government continues to monitor the situation closely, reports Breaking News.
“If this conflict goes on for a prolonged period of time, the scale of economic challenge that the world will face, and Ireland will not be immune from that, will be very significant,” he said, reports Breaking News.
“I have got to get the balance right between acting now to help people like we did last week, and we will keep that under review, but also making sure we keep some economic powder dry for the time ahead. We’re fortunate to live in a country that does have a degree of economic firepower, full employment, budgetary surpluses, money set aside in terms of fiscal buffers, that’s all important, but the words really have stuck with me that I heard from the International Energy Agency the other day – there was an oil crisis in 1973, there was an oil crisis in 1976, there was a gas crisis in 2022, and this current energy crisis globally is larger than all three combined, and is ongoing and worsening by the day”, reports Breaking News.
Mr Harris acknowledged that there is “huge frustration” being felt both across Ireland and internationally as the crisis continues.
“But we will respond in Ireland, we will get through this in Ireland, we will get through it from a position of strength, but I do have to advise the Irish people that really the only sensible, responsible course of action to take is step by step,” he said, reports Breaking News.
“We’re continuing to engage, I’ll be meeting the IFA (Irish Farmers’ Association) and farm contractors later in the week with the Minister of Agriculture, we’re continuing to listen and trying to get that balance between responding in the here and now, and preparing for what could be a very difficult time ahead,” reports Breaking News.
He added: “We’re trying to help as a government, trying to take practical measures, we have staged one of the biggest interventions in the European Union last week per head of population, but no government in the world can absorb, or should absorb, all of the cost, it’s not possible economically. So we’ll obviously have to look at what the scenario looks like every month, what’s the best advice to provide to our people, what’s the best level of intervention to make, but we’re not in the space around supply at the moment,” reports Breaking News.
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