Dáil Éireann Debate, Tuesday - 26 May 2026
139. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if he will reconsider his position and introduce a windfall tax on energy companies in order to fund support for workers and families with the rising cost of bills. [39715/26]
View answerWill the Minister reconsider his position and introduce a windfall tax on energy companies in order to fund support for workers and families in the cost-of-living crisis? The Minister has stated he will not introduce a windfall energy tax on energy companies unless his hand is effectively forced by action at the European level. His performance during the last energy shock was abysmal. He allowed companies to enrich themselves. I urge him not to repeat the same mistakes, reconsider his position and prepare windfall tax measures in the State.
The European Union does not work in the manner in which the Deputy described. It is not about forcing anybody's hand. We are members of the European Union. The Deputy's party did not support joining the European Union, but we are members of it and sit round the table and make decisions together. It clearly makes sense in a single market that if you are introducing a taxation system around energy, you would endeavour to examine the measures available at European level and try to move in concert. That is the position of the Government. We certainly have not ruled out acting on a windfall tax. We have said it would make sense that we do that at a European level.
As the Deputy is aware, the European Commission's AccelerateEU communication addresses the EU's rising energy costs and volatile fossil fuel markets and aims to accelerate the clean energy transition and strengthen EU energy resilience. While the communication notes member states may take domestic measures, no EU-wide approach has yet been agreed. The temporary solidarity contribution, TSC, was introduced in line with Council Regulation 2022/1854 of 6 October 2022 to tackle windfall gains being made in the energy sector at the time, following the commencement of war in Ukraine. The TSC formed part of a co-ordinated European response, reflecting the highly interconnected nature of EU energy markets - when we acted, we did so at an EU level - and a view that an emergency intervention to mitigate the effects of high energy prices at the time could not be sufficiently achieved by member states individually.
It continues to be the Government's view that tackling the energy crisis in a co-ordinated way between EU member states is preferable, given the interconnectedness of EU energy markets. We will continue to engage constructively with EU partners on these matters and aim to ensure that any joint European response to these challenges is co-ordinated and effective. In this context, potential solidarity measures and broader energy market developments continue to be a central focus and Ireland continues to engage with our EU partners, in colluding during our forthcoming EU Presidency.
The Government is conscious of the increased financial pressures on households and businesses, which we have discussed in terms of the temporary and targeted measures we have introduced, one of the largest packages in the European Union. Alongside this, work is ongoing through the national energy affordability task force to identify further measures to enhance energy affordability. The ongoing conflict shows the need to accelerate the deployment of renewables at domestic and EU level.
It is the same old playbook. We see the same playbook being used by the Government on the occupied territories Bill. When it does not want to do something, it reaches for the EU and uses it as an excuse. The EU has given member states the green light to act on this. The ball is in the Government's court, yet it is still finding excuses as to why it will not or cannot act. It is trying not to rewrite history. The Government opposed action at EU level during the last energy shock. Electricity companies were never hit with a windfall tax in the State. The TSC the Minister mentioned did not apply to electricity companies, but the European Commission has been crystal-clear this time that member states can act. The Minister can act. Does he accept that he is choosing not to act on a windfall tax on energy companies?
Does the Minister accept he is choosing not to act in relation to windfall tax on energy companies now?
I fully accept that it is the very clear position of the Government that if we were to act on windfall taxation, we would do it at an EU level because of the interconnectedness of the EU market. That is the position of the Government. This week, Deputy Doherty wants to fund the new measures he would like to do outside of a budget with a windfall tax.
Who said that? Why are you making that up? Did I say that?
Speak through the Chair, Deputy.
With respect, did I say that? Is the Minister just going to make up lies? Is he just going to do that?
The transcript of the Dáil will show-----
I did not say it.
Let me speak, Pearse. Come on.
I did not say it.
The angry routine is not working. Just let me speak. I thank the Deputy. I thank the Cathaoirleach Gníomhach. The transcript will show that Deputy Doherty talked about bringing in a windfall tax measure that could help to provide supports families and businesses.
I did not say that. I actually did not say that.
Deputy Doherty can do this outside. This is not a conversation. There is no back and forth. The Tánaiste can finish.
This is my time. I am allowed to speak. I might be allowed to suggest the Deputy might tell me what the purpose of it is if he does not believe it is for that. Last week, he wanted us to use the surplus. The point is we have put in place one of the largest energy support packages in the European Union. We are working at an EU level because a co-ordinated approach matters. Being isolated and not working at a European level does not work for this country's economy.
Deputy Doherty has one minute.
He just used all of my time.
I know the Minister wanted me to say that and that is fine. I have no problem saying that but I did not say it. I did not work with the narrative of the Minister's script.
I do not have a script.
Let us be clear. The Minister has the power to do this now. He has the power to introduce a windfall tax on energy companies. He is refusing to do so. These companies are ripping off Irish customers left, right and centre. There is a decision the Minister has to take about which side he is on. He talks about the EU energy market but it does not stack up. The Irish energy market is not as integrated as that of other member states because we are an island nation.
That is the problem.
There is a difference there in the first instance. That is a bit of a smokescreen in relation to an action. The reality is that the Minister does not want to do this. The European Commission has given him the power to do it and, of course, he should do it. Let us look at the last time we saw money collected. We know that €178 million is still sitting there. That was money that was supposed to directly support workers and families with the cost of electricity. I told the Minister earlier on. There are 320,000 families who cannot pay their electricity bill and the Minister has sat on a fund of €178 million for the past three years that is just sitting there. It is ridiculous.
It is also important to note, as the Deputy referenced the last time, that when the temporary solidarity contribution was brought in, and this is already facing multiple legal challenges in the Court of Justice of the European Union, the actors questioned the legality of the measures and the actors questioned the retroactive elements of the measure. Claimants are arguing that the EU incorrectly adopted the levy under Article 122 of the Treaty on the Functioning of the European Union, TFEU, as emergency measures rather than requiring unanimous agreement. The last time this was done, it was subject to legal challenge.
The Government is working at a European level because we believe in a single market for energy. That is where we are all working to get to. There is an interconnectedness to this. We have provided significant financial assistance to families and businesses. We will be doing more in the budget to help people with the structural costs they face in their lives. We will continue to keep all matters under review.
