Amid the ongoing energy crisis, the Irish government has naturally received a lot of criticism for the vulnerable position we find ourselves in, as one might expect. And much of that criticism is well-earned.
Of course there’s a global, geopolitical dimension to the energy crisis, and Irish politicians don’t control European gas prices. Certainly, the war in Ukraine plays a major part in the drama, and to lay blame for the crisis solely at the feet of Irish ministers would be absurd in the extreme.
But as seen on RTÉ, we’ve now established that Ireland is the single least prepared country in the EU to deal with the ongoing and incoming energy shortages. And that is thanks solely to the ingenious energy policy of Éire’s best and brightest over the past number of years. After all, who else would be to blame if not the people at the joystick making the decisions.
And so, as energy providers warn of the potential for rolling blackouts and rationing this winter, some people have half-joked that “This bloody government will have us staggering around by candlelight before the end of the year,” or words to that effect.
But I fundamentally disagree with that sentiment. Not because it’s unfair or too harsh or anything, but quite the opposite – because it’s far too optimistic and generous to assume you’ll even be able to get candles in December. As it turns out, the State has done what it can to stymie even emergency measures like that ahead of time.
As found on the Revenue website:
An Oireachtas parliamentary question thread from last year goes on to explain that such candles are now taxed at 23% VAT as of this January – almost a quarter of the total price. This was mainly targeted at Church candles, which previously received slightly less tax than other varieties.
So, in short, rather than cutting VAT on candles to make them more affordable to ordinary people, the government went out of its way to take the few varieties that weren’t taxed to the hilt already and wring a bit of extra cash out of people with them as well.
“But Ben,” you might say. “The war in Ukraine didn’t kick off until late February. This tax change came into effect in January. How could the government have known energy prices would be a problem? They’re not time travellers.”
And that would be a very fair point – if it wasn’t for the fact that blackout warnings were being issued early last year, months before a single shot was fired in Ukraine.
As reported on August 17th 2021 in the Irish Examiner:
“The Department of the Environment insists it is taking sufficient steps to avoid rolling blackouts this winter but admitted a shortage of electricity supply “can never be ruled out”.
…
The Government was first warned about the risk of blackouts earlier this year by energy regulator, the Commission for Regulation of Utilities (CRU), and national grid operator EirGrid.”
Not only was this highlighted to the government as far back as June 2021 or even possibly earlier, but one major report from Eirgrid last September said that Ireland may have electricity shortages over the “next five winters.” This prompted Energy Minister Eamon Ryan to say that he can’t be “absolutely certain” blackouts won’t occur.
So Russian war or no Russian war, energy supply and potential power outages have been a looming problem in Ireland for at least a year. Everyone involved in energy supply is telling us this will be a risk for years to come.
Not only that, but the cost of living crisis had already begun before the candle price increase, with the Examiner reporting in November 2021 that people were having to choose between fuel and food due to the increases.
And against the backdrop of this context, the government still decided to drive ahead with putting up the tax on candles – much like the carbon tax increase they issued this year during a pre-existing home heating and motor fuel crisis.
Candle light might seem like a dream in a few months time, as what started out as a Green dream is starting to feel more like a nightmare.