How To Solve The Cost Of Living Crisis For Workers

The Irish government is making a million a day from rising fuel prices. But they’d rather cut taxes on private jet fuel than do anything to help hard pressed workers.

The puny measures taken by the Irish government to tackle the soaring energy and fuel costs will do little or nothing to help working class people. Fuel prices will continue to rise as the US war on Iran continues.

As fuel reserves run out costs will increase further and inflation is likely to increase as prices for food and goods will increase with transport costs going up. Other governments across the world are taking actions to ease the burden of the fuel crisis.

In the state of Victoria in Australia they have announced that public transport will be made free, at least until the end of April. In Sri Lanka the government has declared every Wednesday a public holiday, essentially creating a 4 day working week. Civil servants have been asked to work from home wherever possible.

In Spain a huge package of measures was introduced by the government amounting to about €5 billion. They mainly come as tax reductions on energy and fuel such as VAT reductions from 21% to 10% on electricity. More importantly, they have introduced a temporary freeze on rent increases, which will have a positive impact on working class people.

If governments elsewhere are taking these actions what could be done here in Ireland, in the short term the government could:

Re-nationalise electricity provision.

Ireland had the lowest electricity prices in Europe when it was nationalised under the ESB. Since 2005 when the electricity market was fully privatised Ireland has become the most expensive for electricity. While energy credits would give people some immediate relief, the only way to cut costs long term is the re-nationalisation of our electricity and gas. This would end profiteering and price gouging.

Declare free public transport.

Making public transport free would put money back in the pockets of the poorest people who are the most likely to already use public transport rather than a private car. It would also incentivise car users to switch to public transport to save on fuel.

Introduce a 4 day working week.

The reduction of the working week to 4 days (without loss of pay) would have an enormous positive impact on workers’ lives as well as reducing fuel consumption. In the early days of the workers’ movement unions demanded the 8 hour day. Today that battle cry carries on in the fight for a 4 day working week.

Working from home.

Giving workers a right to work from home would significantly reduce fuel consumption, cut down workers’ commuting times and save people money. There’s nothing to stop the government announcing this across the public sector in particular.

Scrap the carbon tax.

The carbon tax hits those who can the least afford it hardest. It’s a tax on working class people, not on the polluting corporations. We want taxes on the pollluters and profiteers, not on workers.

Ban data centres.

One of the reasons why electricity costs are so high is because there is not enough being produced here in Ireland. But corporate data centres use up as much electricity as all urban households in the entire country. Instead of importing expensive fuels to feed the data centres we should be using electricity created here for our homes and services.

Stop all rent hikes.

Some of the people most vulnerable to energy price increases are tenants in social housing. Despite many council tenants choosing between heating and eating Dublin City Council and other councils are increasing rents for tenants. For private tenants the new rent rules will mean huge increases in rents making renting in Ireland even more unaffordable than it already is.

The Irish government won’t do any of these things because they represent the boss class and the measures outlined above would hit the profits of their masters. Fianna Fáil and Fine Gael don’t do anything without consulting boss’s unions IBEC and ISME first.

We have to fight for every measure that gives much needed relief to workers right now. But only when we have a society where workers are in the driving seat of a planned economy can we take long term measures that are in the interest of workers and not the bosses.