Taoiseach Micheál Martin has faced intense pressure to help Irish people who are being “fleeced” by the soaring cost of living which will see their bills rise by up to €1,300 this year.
Mr Martin said “we have to avoid a wages spiral” as it could further add to inflation.
But Tanáiste Leo Varadkar has said employers should give their workers’ a pay rise if they can afford it, to help with the rising cost of living.
Speaking to reporters on Tuesday, Mr Varadkar said “where employers can afford pay increases they should do and the government certainly has in relation to public sector pay.”
But the Fianna Fáil leader said later in the Dáil that “we have to think intelligently as a country here how to protect families and how we protect people in terms of the daily necessities of life.”
Labour leader Alan Kelly hit back at Mr Martin and said workers have every right to look for a pay increase “because your government will not deal with it and you can’t sit there and say they shouldn’t.”
He said: “They need the wages to deal with these costs and the will isn’t here from this Government and you really need to re-think because the people who are watching that are getting the bills this week, next week and the weeks after are really looking to you now.
“And if you don't come up with measures, they will suffer because this won’t go away anytime soon.”
Speaking in the Dáil, Sinn Fein leader Mary Lou McDonald outlined the yearly cost of putting food on the table is to go up by almost €800 and the average cost of running a car is up by €500.
The price of bread, pasta, crisps and soft drinks are all up and the cost of heating a house has jumped a massive 53%.
She said the €100 energy credit for each household which the Cabinet signed off on on Tuesday is “not a game changer” and has come too late.
She said: “I want you to listen to people, and the experiences of families who tell us and tell you they are struggling to keep the lights on and I want you to make clear what your government proposes to do about that.
“People are under huge pressure as they are hammered by non-stop price hikes in every area.
“For far too many people being ourselves again means the stress and struggle of trying to keep up with soaring costs while wages stay the same.”
In response, the Taoiseach said inflation was a global issue and the Government did respond by giving people an extra €5 fuel allowance as well as delivering a tax package in the most recent Budget “to assist people in terms of disposable income..”
He said Russia’s behaviour and approach to restricting gas supply to the West is also adding to inflation.
Labour leader Alan Kelly told the Taoiseach “I honestly don’t think you are living in the real world.”
He said the €100 energy credit to households is a “joke and insulting” given inflation is at a 20 year high at 5.5%.
Mr Martin said: “We do have to engage with the social partners as well and work our way through this and take further measures if required to deal with what is happening and what is likely to happen for the remainder of 2022.”
