There are a “lot of things in the mix” as the Government plans further measures to tackle the cost of living, Leo Varadkar has said.
The Tánaiste flagged concerns about potential diesel shortages and a doubling of energy prices, but said it was unlikely the Republic of Ireland would need to introduce energy rationing in response to the war in Ukraine.
Mr Varadkar, who was speaking at the opening of new habitats at Dublin Zoo, is the latest Government figure to indicate that a fresh package of measures will be introduced to protect households bearing the brunt of rising inflation.
It was his first public event since emerging from isolation after testing positive for Covid-19.
On Thursday, Minister for Climate Eamon Ryan said the Government has plans to bring in more measures to try to ease the costs to households.
The Green Party leader said the Government is considering using mandatory time-of-day-pricing for electricity.
Speculation
Mr Varadkar on Friday said that he did not want to add to speculation, but ruled out using borrowed money to fund any new measures.
“I think it is important to acknowledge the very serious effect high energy prices are having on households. A lot of people struggling to pay the bills. And also on businesses.
“The global price of gas has increased fourfold. That of course has an impact too on the price of electricity,” he said.
“We are not going to see prices increase by fourfold.”
Tanaiste Leo Varadkar out of isolation and, he jokes, “back in the wild” at Dublin Zoo this morning pic.twitter.com/RGZXwgYiwg
— Dominic McGrath (@McGrathDominic) April 1, 2022
“But they will increase a lot. If you take from trough to peak, we might see gas and energy prices as much as double.
“And no Government unfortunately can fully compensate people and businesses for that.”
But he said the Government is “examining what else we can do to soften the blow”.
“A lot of things are in the mix and a lot of what we can and can’t do will be determined by budgetary position for a start, because we don’t want to use borrowed money to do this.
“And secondly, what we could do under European law.”
He rejected the suggestion that the need to bring forward further measures was confirmation that the support already in place has failed.
Avoid recession
Opposition parties have repeatedly called the Government actions so far on inflation, which included a cut to excise duty on fuel, inadequate.
Mr Varadkar said that it was a “dynamic situation” and that the Government had to respond to an “evolving situation”.
The Minister for Enterprise, Trade and Employment also said he was optimistic that Ireland could avoid going into recession as a result of the crisis in Ukraine.
“It is our objective to make sure we are one of the few countries in the world that will avoid going into recession due to the energy and Ukraine crisis.”
“We did manage to avoid going into recession during the pandemic, unlike almost any country in the world. I am determined, as is (Finance) Minister (Paschal) Donohoe and the Taoiseach, that we avoid going into recession as a consequence of the current crisis.
“That is possible, but it does mean doubling down on all the things that make Ireland successful economically.”
