Taoiseach considers windfall tax on energy companies

/ 5th August 2022 /

Micheál Martin has said a windfall tax on energy companies is under consideration in next month's Budget.

Profits at energy firms are soaring during an energy crisis that has left families struggling to heat their homes.

The Taoiseach said that the Government will "give examination to the issue of a windfall tax".

Mr Martin also said that the use of Liquid Natural Gas (LNG) cannot be ruled out, adding it is permitted under the terms of the Programme for Government.

Using LNG would allow the country to import gas from abroad outside of its existing pipe network, which is imported from the UK, Norway and the Corrib gas field. However, the Programme for Government does not permit the use of LNG that has been derived from fracking, the process of injecting fluid at high pressure into the seabed which causes cracks to unearth gas.

"Personally in that context [without fracking], then I think we'd have to give consideration to LNG. Given the energy security issue that has arisen from the war, all of Europe is looking at LNG, but the type of energy we look at and the mode of delivery may differ," he said.

The Taoiseach said he wasn't going to comment on individual projects, when asked or his view of the proposed LNG terminal in Shannon, but said "LNG that uses fuel that's not derived from fracking is consistent with the Programme for Government".

"It's one option, a number of options that simply has to be considered in the light of energy security," he added, during a visit to the Blasket Islands in Co. Kerry yesterday.

windfall tax on energy companies — Profits at energy firms are soaring during an energy crisis that has left families struggling to heat their homes.

Mr Martin said the €5billion surplus in tax revenues published this week was "good news" and that it gave the Government more room to ease the cost-of-living crisis.

"It gives us an opportunity in the Budget, and the cost of living package in September, to take pressure off people," he said. "It [the Budget] will have a cost focus in terms of tax relief, and also how can we reduce costs for families parallel with that there'll be a separate cost-of living package."

Some Budget measures will kick in immediately, in what is a new departure, while others will come into effect in January. "The key issue [in the Budget] is to alleviate pressures on households, and families with children," he said.