Treasury Secretary Paschal Donohoe hints at new subsidies for household energy bills

Any permanent budget concessions must be sustainable for the future, Treasury Secretary Paschal Donohoe said while touting new subsidies for energy bills.

But Mr Donohoe warned that temporary moves could be lashed out in the future.

“I think the government has shown clearly during the pandemic that all the measures that we said would be temporary are now over,” he said.

“Therefore, once we are able to see lower energy prices, I am very confident that the government will act at that time to change the measures in place.”

He also strongly suggested that the government would reduce the tax burden on household workers, particularly those with marginal tax rates.

He said: “We need to help workers so that when they get a pay raise to help them with the rising cost of living, they have the opportunity to keep most of their own earned wages.”

In a signal to the public not to expect further subsidies if energy prices inevitably fall, Mr Donohoe said: “Whatever decisions we make now, we need to be able to withstand even if circumstances change in the future change.

“If you watch the Summer Economic Statement this afternoon, you will see a clear breakdown of the measures we have put in place that are permanent and the measures that are temporary.”

Mr Donohoe gave no specific details about the statement, which is set to be unveiled later today.

But he said: “We will be confirmed this afternoon because we will be able to show the resources that are available to the country for the next year and how the government can agree on a living package.”

This would “make a difference to the pressures we know so many households are currently facing”.

“We really appreciate that with the cost of fuel and groceries rising, so many purses and wallets are really feeling the impact of rising prices.

“But this is a challenge that will accompany us for many months to come. Next year it will be with us.

“And so the most effective and appropriate way to deal with this is through budget.”

The summer economic statement will show available resources, he said.

“We are very aware that whatever decisions we make now, we must be able to withstand even if circumstances change in the future. And I think that will be a guiding principle for the government.|”

Mr Donohoe insisted there is “an atmosphere where wages are rising”, although many private employees might disagree.

He added: “We also recognize that, from a fiscal perspective, we have taken action to bring prices down on currently expensive fuel.” Treasury Secretary Paschal Donohoe hints at new subsidies for household energy bills

Fry Electronics Team

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