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Cost of living: the issue that will not leave Government alone

Inside Politics: TDs bombarded about fuel costs by hard-pressed constituents

For the Government, the cost-of-living issue is not going away. Photograph: Bryan O'Brien

Pat Leahy's face
Pat Leahy
Thu Jun 16 2022 - 09:07

Good morning.

If Brexit is the story that will rumble on interminably, and landmines like the mica controversy and the expostulations of President Higgins will explode from time to time, then the cost of living is the issue that will not leave the Government alone.

Further evidence from last night’s parliamentary party meetings, where Government TDs were moderately agitato on the subject, as Jack Horgan-Jones reports. Tánaiste Leo Varadkar told Fine Gael TDs that he would have a discussion with Minister for Finance Paschal Donohoe on the issue of fuel costs, upon which backbenchers are bombarded by their hard-pressed constituents, especially in rural areas.

This will be one of the dynamics to watch in the coming weeks, as Donohoe and Minister for Public Expenditure Michael McGrath seek to hold the line against growing pressure for a further package of measures to alleviate the cost-of-living increases before the Dáil rises in mid-July. How that ends will tell us much about the budget to come in October, and also about the internal workings of the Coalition.

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This morning’s lead story contains further details of how inflation is hurting people on the margins. A new study by the ESRI has found that nearly a third of all households in the State are now living in energy poverty as a result of recent price hikes. That’s bad enough now. But what happens when winter comes?

The story is here.

And this week’s podcast features a discussion on the subject with, inter alia, the UCC economist Seamus Coffey, available here (or wherever you get your podcasts, as they say).

Mica mess

Jennifer Bray has further details on the mica mess this morning. It seems State aid rules may complicate including landlords in the scheme. Keeps getting better, this one. Story here and a Q&A to catch you up here.

Northern Ireland Protocol

In Brussels, the EU announced that it would take two legal actions against the UK, one an “unfreezing” of an action begun last year, and the other a new set of enforcement proceedings. The move had been signalled on Monday, but European Commission vice-president Maros Sefcovic, who has the unenviable job of leading on Brexit, was even more blunt than usual. “Let’s call a spade a spade: this is illegal,” he said of the British move to introduce legislation to unilaterally scrap the protocol.

In London, the British Government said it was disappointed by the move, which is rather a little on the cheeky side. But both sides seem to be using their spades to dig in for a long campaign. Brexit, you’ll be delighted to hear, is going to be with us for some time.

Denis Staunton reports from London.

Presidential headlines

Stately, plump Michael D Higgins has fairly catapulted himself into the headlines in recent days. He ran into a bit of trouble with a Nigerian bishop (yes) but then unburdened himself of some thoughts on the housing crisis (“a disaster”) which were interpreted in some quarters – well, virtually everywhere, really – as a criticism of Government policy. There’s been a bit of pearl-clutching in Government about this, but not really any huge degree of surprise. The Government has bigger things to worry about on housing than what Michael D says.

Anyway, news here and analysis here.

Best reads

Much to chew on in the op-ed pages today. Newton Emerson says that the DUP should take the way out being offered on the protocol and rejoin the Northern Executive, while Finn McRedmond says the British have completely misunderstood the EU.

Sebastian Barnes, head of the Fiscal Council, the Government’s budgetary watchdog, says that the country should save some of the bumper corporation tax receipts it is currently collecting: because they may not last forever.

And for the day that’s in it, Frank McNally’s Irishman’s Diary recalls his long relationship with Ulysses.

Playbook

It’s Bloomsday, so expect large numbers of otherwise respectable people swanking around the city in Edwardian dress, juiced up on Burgundy and Gorgonzola. Well, you could do worse.

Introibo ad altare Dei and it’s Finance and Public Expenditure questions first up in the Dáil this morning, followed by Leaders’ Questions and later statements on special education. A report on reducing transport emissions by half by the end of the decade concludes before a civilised 7.17pm adjournment. Government business in the Seanad is the Garda legislation and there’s a Private Members’ Bill on preserving the built heritage before a 5.15pm adjournment.

Just three committee meetings on the schedule for today. The gender equality committee will hear from carers’ organisations, while the Public Accounts Committee will hold a hearing on the escalating costs of the National Children’s Hospital. Would you believe it, the bill is going up again. Jack Horgan-Jones has the details. The committee on autism has a private meeting.

Will irishtimes.com keep an eye on all this for you? Yes we will Yes.

Sorry.