Monday, November 13, 2006

Cash strapped Kildare families face fuel bills they can’t pay – Daly

Cash strapped Kildare families are facing ESB and gas bills they cannot pay while the Government reaps the benefit of price hikes according to Fine Gael Kildare South General Election candidate, Cllr Richard Daly.
"Recent price hikes in electricity and gas charges were premature and the obstinacy of the Government and the Minister for Communications, Marine and Natural Resources in turning a deaf ear to consumer concerns about the numerous gas and electricity hikes is truly amazing.
"Electricity price rise due next January will mean that prices have increased by 60% over the last six years – with hard working families facing into another year of price hikes, coming after a series of ESB increases in the last number of years – 3% in Jan ‘06, 4% in Jan ‘05, 8.6% in Oct ‘04 and 5% in Jan ‘04.
"January’s price increase will mean Irish consumers will pay about 17.5% more for electricity than their British counterparts, facing an annual bill of approximately €900.
"In September, consumers were hit with a 33.84% hike in gas. This comes on top of the existing burden of high mortgages, long commute times and high childcare costs, all of which will only fully impact in mid 2007. Thanks to this increase the average Irish consumer will pay €1,200 a year for gas - almost €300 more than in Britain.
"The direct corollary is the Government gets a windfall in extra VAT rising from €116 million to €223 million between 2001 and 2005 and culminating, if the present trend continues, in a massive €362 million by the end of 2006 - a major win for the Government, a major loss for the domestic and industrial consumers.
"The net losers are, as usual, the householder, manufacturing and service industries. These additional hikes are placing a heavier burden on those families who are already overloaded and are a threat to the economy from the increasing lack of competitiveness in both the manufacturing and service sectors. To pile price increases on top of those who are already overburdened in this fashion is irresponsible at best and at worst cynical, but more seriously shows significant flaws in the regulatory system applied here."

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