Cost-of-living crisis could last ‘years’, Varadkar warns

DUBLIN: Tánaiste Leo Varadkar has told the Dáil that the cost-of-living crisis could last for years. Varadkar’s position was that the government had done everything possible and that the inflation crisis is a global issue.

Sinn Féin and Independent TD Mattie McGrath also came out strongly against this. Sinn Féin Spokesperson on Finance Pearse Doherty said that many parents are feeling a “sense of dread” over back-to-school costs.

Mr Doherty told the Dáil that “no parent should dread their child’s return to school” as he outlined the case of one mother based in Cork, who said she was terrified over back-to-school costs amounting to €1,700.

He demanded that the government come up with an emergency budget, noting that parents are facing such stress and anxiety over rising expenses.

Responding to this, the Tánaiste said that everyone is facing this situation as inflation was an issue all around the world. He added that “there is only so much any government can do”.

Mr Varadkar said the government had “acted already” in addressing the crisis. “We’ve effectively had a mini-budget, or an emergency budget, already, €1.4 billion in measures since the budget. Reducing excise on petrol and diesel, reducing VAT on electricity and gas, a further fuel allowance payment,” he said.

TD Mattie McGrath pointed out that according to a recent Eurostat report, the cost of living in Ireland is well above EU average. He said that the Government had failed to address the crisis which is “financially crippling” the most vulnerable.

Mr Varadkar, meanwhile, countered that the Eurostat report showed higher costs in Ireland, but that this had to be read in the knowledge that salaries and wages in Ireland were higher than the EU average, which was “missed” in the report’s analysis.