Finance Minister Paschal Donohoe admits there is no plan to support inflation-hit households


Finance Minister Paschal Donohoe said Ireland would see “high costs” due to the war in Ukraine, as he announced there were no further plans to assist cash-strapped households.

r Donohoe said the Government has “no other plan” to support households that have suffered the most in the face of high inflation.

He said the Government introduced excise tax relief from €9 to €13 last week for a barrel of diesel and a €125 payment was being made to 300,000 homes to support fuel increases. Whether.

The minister added that a €200 package for households to help boost fuel will also be “implemented soon”.

While Mr Donohoe said the Government was aware of “the difficulty many people are facing”, he felt the Government’s response so far had been “strong”.

However, he added: “We won’t be able, we won’t be able to insulate the economy, businesses or even ourselves, from various higher costs.”

Minister Donohoe told Morning Ireland on RTÉ Radio One that high inflation could linger for some time and that means Budget 2023 will be “particularly important”.

High inflation, he said, “will of course affect our national finances,” but he added the Government will do its best to support those in need. “We will do our best,” he added.

“But there are some costs that will be high and… no government can fully cover those…” he said.

Responding to ICS Mortgages’ fixed rate hike yesterday, Minister Donohoe said “it is not appropriate for me to comment on rate decisions”, but he “appreciates the impact of higher rates”. …”

He added that it is “recognizable” however, that the European Central Bank, has “in effect … pointed out … their main focus” is on how governments can borrow to “respond to Covid”.

“I think central banks and of course finance ministers, like me, fully appreciate that additional changes in interest rates at the moment, will make things more difficult.” , he added.

Mr Donohoe said he would “monitor” how Irish lessors could have to write off billions of euros worth of planes leased to Russian airlines, after the Kremlin passed a registration law. foreign-owned aircraft.

“Ultimately these are commercial deals for the private sector,” he said.

“And I know there are arrangements in place to manage the kinds of risks that might develop…”

He added that all government agencies are “interacting” with the companies.

“Risks like this are served and recognized by companies like this. But of course, if there is any support they need on behalf of the Irish Government, and in due course, we will gladly do so,” he said.

As the war escalated in Ukraine, Mr. Donohoe said he would expect further sanctions related to Russia’s growing economy in the coming days, “if not today”.

“The European Commission is currently considering what next steps can be taken,” he added.

“It ranks among the top of the most comprehensive sanctions package ever introduced. Measures already taken are actually weakening them (Russia).

“They really blocked the ability of the Russian economy to finance this murderous war.

“I expect further sanctions to be in place.”

However, he stopped short of saying Ireland would support Russia’s oil and gas containment.

“No other country, in other parts of the world, such as the US, for example Canada, has taken a decision on this issue,” he said.

“On Friday morning, when the heads of government met in Versailles, France, they were tasked with accelerating our energy independence and we are working to get there sooner than planned. .”

He said it was necessary to be “careful” “in the coming weeks and months” to prevent Russia’s “capability to finance war”, but also protect Ireland.

“The main advantage that we have and the sanctions that we are currently implementing is that the impact on the Russian economy is more exponential than the impact on the European economy.

“And we need to maintain that balance.”

Meanwhile, some of the 20,000 housing offers will be made this weekend to house Ukrainians fleeing the war – while work is being done to recognize teachers. Ukraine in Ireland.

The government will hold discussions remotely today and it is expected that the housing of Ukrainian refugees will be high on the agenda.

The Irish public has made 20,000 offers of accommodation, and some of these are expected to be accepted by the end of the week, as the disaster in Ukraine grows worse.

RTÉ reports that, as with hotels, it is expected that bed and breakfast accommodation will also be used to house residents.

Discussions are also expected about placement for school-age children. And work is underway at the Ministry of Education and at the Teaching Council to quickly recognize the qualifications of teachers from Ukraine.

The Irish government believes that teachers will play an important role in helping Ukrainian students adjust to life and the Irish education system. Finance Minister Paschal Donohoe admits there is no plan to support inflation-hit households

Fry Electronics Team

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