Government running out of answers on cost of living crisis, says Smith

Labour TD Duncan Smith has said that the government are “running out of answers” on the cost of living crisis.

The Dublin Fingal East TD said, “families are being hit from every direction, and for many people the pressure is becoming unbearable. The cost of everyday essentials has risen sharply, from groceries to energy, insurance and transport, while this Government has quietly withdrawn the very supports that helped people stay afloat.”

“In the last five years alone, beef prices have risen by over 40 per cent, butter and milk prices by more than 45 per cent, and in just the past year families have seen further hikes across staples that make up the weekly food shop. These are not abstract figures. They translate directly into parents standing at the checkout, watching the bill climb while wages fail to keep pace.

The Labour TD said “this government has presided over rising tolls, a €500 increase in the cost of third level education, and the removal of energy credits, all at a time when households are already paying some of the highest electricity prices in Europe. Motor insurance costs are rising again, health insurance increases of over 10 per cent are being flagged, and even basic services like postage and a pint in the local pub are becoming more expensive.”

Smith raised the issues in the Dáil on Thursday (January 15,) but said Minister for Enterprise Peter Burke’s response was “deeply disappointing.”

“Rather than engaging with the substance of what people are experiencing, he recycled old lines about the 2026 Budget and future intentions. That will offer no comfort to households who are struggling right now to pay for food and heat their homes. At the same time, this government continues to attempt to deflect from the real issues facing people, blaming immigrants for housing failures, while knowing full well there is no one else to blame for soaring grocery prices. A year on, people can see that this approach is inadequate and deeply damaging.

“This government knows that retail energy prices remain far higher than wholesale costs, yet it refuses to act decisively. Instead of regulation or legislation, we are offered affordability groups, taskforces and working groups that deliver little while bills continue to rise,” he said.

“Labour has been clear that the state can and must act. The Programme for Government commits to protecting consumers and tackling excessive pricing, yet this government chooses inaction. Labour is calling for targeted cost of living supports to be restored, decisive intervention in the energy market, and serious consideration of windfall taxes on energy companies and large supermarket chains to fund relief for households.”

“Families deserve a government that steps in when costs spiral out of control, not one that shrugs its shoulders and tells people to wait. The government must act now,” Smith said.