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Energy prices should drop later next year - Donohoe

He says energy price difficulties should 'begin to moderate' in 2022
Jack Quann
Jack Quann

10.55 1 Nov 2021


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Energy prices should drop late...

Energy prices should drop later next year - Donohoe

Jack Quann
Jack Quann

10.55 1 Nov 2021


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The Finance Minister Paschal Donohoe says he expects energy prices to fall in 2022.

He says the Government made adjustments in the budget to help off-set higher costs of living, mainly as a result of inflation.

This included changes around the tax code and social welfare payments.

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But he told Newstalk Breakfast one area expected to ease in the second half of next year is energy prices.

"I think it's also important to note that even though the European Central Bank are expecting that the increase in inflation will go on for longer than we may have expected, they and I also believe that as we move into next year - and into the second half of next year - we should begin to see some of the energy price difficulties that we're currently facing begin to moderate.

"And that will help, of course, with the cost of living and the issues that we're facing there".

He was speaking ahead of a meeting with the US Treasury Secretary Janet Yellen in Dublin.

On the recently-agreed 15% global minimum corporation tax deal, Minister Donohoe says Ireland is prepared.

"I believe big change is going to happen in corporate tax policy because of how many countries have signed up to that agreement.

"But I believe in that change Ireland can and still will be very, very competitive.

"We've always modelled the impact of these changes on our corporate tax revenues being equivalent to, losing over time, one-fifth of the tax revenue that we collect.

"But we have been including that in our budgetary calculations now for over two years.

"So while we are expecting we will see a loss in corporate tax revenue, we have now planned for that some time".

Energy prices should drop later next year - Donohoe

00:00:00 / 00:00:00

   

Main image: An electricity bill is seen in this 2013 file photo. Picture by: Rosemary Roberts / Alamy Stock Photo

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Budget Budget 2022 Corporate Tax Corporate Tax Revenue Energy Prices European Central Bank Global Minimum Corporation Tax Deal Inflation Janet Yellen Newstalk Breakfast OECD Paschal Donohoe

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