What is being discussed at Cabinet today?

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The Claire Byrne Show 10 min 3 speakers 8 chapters transcribed 5 hours ago
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What is the main topic discussed in this episode?

Claire Byrne 0:01
The Claire Byrne Show on Newstalk. With Aviva Insurance.

What measures are Irish ministers considering ahead of the budget?

Clare Byrne 0:10
Scrapping public transport fair hikes is one of a host of measures being discussed at Cabinet this morning to explain what government ministers will be making decisions on today. I'm joined by Conal Thomas, who's political correspondent for the Irish Independent. So there's lots on the agenda 'cause we are exactly a week out, aren't we, from The budget.

Why is the government being urged to scrap public transport fare increases?

Clare Byrne 0:27
How big of an issue is the is the public transport fare increase?
Cónal Thomas 0:31
Well, as Mary Regan, the Irish Independent's reporting this morning, um, the Just Transition Commission has effectively wrote to the government and said that scrap the fare hikes that are due to come in in January. Remember a couple of months ago there was kind of uproar about this, the national transport authority is going to be increasing fares from January around the country, leap fares, et cetera, et cetera. And the Just Transition Commission has effectively said to scrap them and use some of the uh unspent carbon tax. funding to to keep them at the level they are. The problem in all of this it comes down to what's effectively called the PSO, the public service obligation, right? That's used to fund those reduced fares throughout the country.
Cónal Thomas 1:08
It's used to fund likes of rural local links. And it's been growing every year. And it seems to be every year there's this standoff between the Department of Public Expenditure and the Department of Transport over the level of that. Now it was nearly a billion euro last year to fund this. This is a bit of a shot across the bow, I suppose, of the government because they're effectively saying the Just Transition Commission is saying, well, effectively, if you're going to spend 100 million euro on excise cuts, well, why are you then hiking public transport fares?

How could carbon tax changes affect fuel costs and home retrofitting?

Cónal Thomas 1:32
On the other, there's a balance in all of this because already we're hearing around what they may do on fuel and home heating. So they may, you know, we we've heard talk about this cutting the carbon tax on kerosene. That's going to cost the exchequer as well. So it's this balancing act between the Department of Public Expenditure and the Department of Transport of how this can go ahead. This budget, I suppose, Claire, has become well earlier in the summer it seemed to be let's reward hard work by cutting income tax and that will still happen. It's very much now become a cost of living budget. And how the government are going to frame that's going to be really important in the next week and that's where the big battle's going to be.
Clare Byrne 2:06
There's a lot of circles to square here because the carbon tax, as you have just said, pays for things like grants for retrofitting and so on. We've seven hundred thousand homes who use kerosene, which is wildly expensive, up by seventy five percent, and yet the government is in this bind where it can't be seen to increase carbon tax. So how do you pay for all the stuff that you want to pay for if you don't increase the carbon tax as you as you'd planned?
Cónal Thomas 2:31
Well the the question then becomes as well, we've already heard, and this is what's worrying, I think, the likes of, say, the Just Transition Commission and the Green Party. And it feels like almost the ghost of Eamon Ryan is coming back in a little bit, because we've heard now this planned hike uh in October may not go ahead. We've heard murmurings, I suppose, of the carbon tax trajectory being pushed out beyond twenty thirty. And then of course, on the other hand of this, there's the much more politically fraught issue, which Happening right now in the last few days and possibly in the coming days is this threat of more fuel protests. So how the government responds to that while also then potentially cutting where it's going to find funding for those retrofitting schemes remains.
Cónal Thomas 3:10
See, now, interestingly, there have been notes of caution within government. Darragh O'Brien has come out very publicly and stated well, if you cut the carbon tax or if you delay it, I should say, that is going to impact retrofitting schemes.

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