‘This is getting serious’ – McVitty

The Government has been urged to cap the price of fuel as the recent escalation is putting people out of business.

“First it was Brexit, then it was Covid and now it’s the war,” Fine Gael Cllr Peter McVitty told the March meeting of Cavan County Council on Monday. “This will have long term effects. The cost of diesel is putting people out of business.”

The stark warning came after the hikes hit their highest levels last week, ahead of a cut in excise duty implemented by the Government.

Cllr McVitty, who runs a haulage business, said coach companies and hauliers are feeling the impact in particular.

He said the price of diesel should be capped at €1.40 per litre.

“This really is a plea now. This is getting serious.”

He hit out at the Green Party leader and Transport Minister Eamon Ryan following his performance in a television interview in recent days.

“He was asked about fuel prices and he was waffling on about retrofitting houses. I know that’s an important issue but this is a major problem.”

The motion drew the support of councillors, with Independent Shane P O’Reilly seconding it.

He said the issue is “nothing to do with Putin but it's been exacerbated by the war”.

The Mullagh man said the rising fuel cost was raised at the December meeting of the local authority and letters were written to Finance Minister Pascal Donohoe, Transport Minister Eamon Ryan and others but no reply was received.

That letter called for a reduction in the VAT rate on fuels to match the 9% rate put in place for the hospitality sector during the economic downturn.

“Hungary capped its price at €1.30 per litre. We’re an island nation and we need haulage,” he said.

Cllr Paddy McDonald (SF) backed the call for a cut in VAT on fuel from the current 23% rate. EU rules prevent the Government from cutting the tax rate but it’s understood discussions are taking place with the EU Commission.

Cllr McDonald also hit out at some fuel retailers who he claimed put up their prices “four or five times” in the day before the Government approved a cut in excise duty.

Cross party support was given with Fine Gael’s TP O’Reilly calling for a postponement of the increase in carbon tax to offset rising prices. He also backed calls for a cut in VAT.

Party colleague Cllr Winston Bennett highlighted the EU’s reliance on gas exported by Russia. He claimed the Corrib Gas Field off the coast of Mayo is “running low”.

“We have to go back to see we don’t have our hands down the lion’s mouth all the time.”

Cllr Madeleine Argue (FG) praised the cut in excise duty put in place last week. The Government cut the duty by 20 cent per litre of petrol and 15 cent on a litre of diesel.

“Prices are dearer in the north and people are coming down to fill up. So they’re doing something right.”

Cathaoirleach Clifford Kelly (FF) concluded the discussion by highlighting the importance of the haulage sector for Cavan, particularly when it comes to jobs.

“People don’t realise the huge amount of employment in the transport industry in Cavan.”