"It's not about me, it's about five million people in our country."
The rising cost of living in Ireland has made regular headlines this week, from at least one Government minister
urging the public to 'shop around' for better deals to
pointed opposition being expressed towards official plans to improve the situation.
On Thursday evening, Minister for Finance Paschal Donohoe officially unveiled new measures designed to tackle the cost of living, including a 20% reduction in public transport fares, a change in the Drugs Payment Scheme, and a cash saving of €200 on every household's electricity bill, regardless of income.
A €100 credit scheme had first been mooted in
early December.
It is expected that the improved €200 credit will become operational by March in the form of an automatic reduction.
Prior to Thursday night's announcement, Sinn Féin deputy leader Pearse Doherty
stated in Dáil Éireann that the Government's package won't "scratch the surface" and has taken too long to arrive.
Doherty directed his criticism towards Tánaiste Leo Varadkar, who appeared on
The Tonight Show on Virgin Media One later that evening to discuss the measures.
Asked directly what he will do with his own €200 energy credit, Varadkar noted that the sum applies specifically to the bill in question.
"Well, it'll come off the bill, obviously, so it'll be a discount," he replied before it was pointed out that it should free up an additional €200, perhaps for personal use.
"I haven't thought about it, to be honest," he said.
"To answer your question, it's not about me, it's about five million people in our country."
Host Claire Brock interjected, asking if it's "problematic" that everyone in the country, regardless of how much money they earn, will receive the same discount.
"I think this is the point," Brock said. "It's maybe not about you, it's not about the high earners here and yet everyone is going to receive that.
"Is that a bit problematic when you're looking at taking a targeted approach, potentially, to really help those most in need, those who choose between food and fuel?"
In response, the Tánaiste said:
"We've done something that is very deliberate. There is €200 off your bill for every household, regardless of your income, and then there's a targeted additional €125 that you can use to pay your fuel bills and that's in the form of an increase in the fuel allowance.
"That'll kick in in early March. But to answer your question – and it is a fair question – there are a lot of people who are on above-average incomes. The average income in Ireland is in and around €40,000, a lot of people on €40,000, €50,000, maybe €55,000 a year – they're on above-average incomes.
"On paper, they might be really well off," Varadkar continued.
"They're in the top 20%. By definition, if you're over about €40,000 you're in the top 20%. When you take account of the income tax they pay, PRSI, USC, childcare, rent, mortgage; sometimes they can be struggling with the bills, too.
"That's why we didn't want to leave out middle income families. Those higher income ones, they pay very high income taxes anyway, and that's how we get the money back from them."
You can watch the exchange below.
https://twitter.com/TonightVMTV/status/1491902904948645889
