Supermarket swoop

Some firms are profiteering from hardship, says Taoiseach | He won't rule out windfall tax if grocery stores making too much

- LOUISE BURNE

LEO Varadkar refused to rule out a windfall tax on supermarkets if the consumer watchdog finds they’re making excess profits. 

The Taoiseach warned prices would remain high and said some energy and grocery companies were profiteering from the cost of living crisis.

In an interview with Virgin Media’s Tonight Show, he said he agreed that prices had “gone up like a rocket but are coming down like a feather”.

Mr Varadkar added he does expect to see prices moderate as inflation slows but it will take months for electricity and grocery costs to fall.

He said: “I think there is evidence of profiteering.

“The reason why prices have gone up is manifold – it’s the war in Ukraine, it’s the snapback in demand after the pandemic. [It’s] interest rates going up. There’s lots of different reasons. The evidence is there, even the European Central Bank says it, that there are some companies that are recording bumper profits.

“That is profiteering in my view. When it comes to energy companies, we’re hitting them with windfall taxes and special dividends.

“We’ll use that money to get back to people to help with their electricity bills, small businesses as well.

“When it comes to the grocery sector, we’re engaging with them on that now but we expect to see prices come down.”

Mr Varadkar said prices may “level off or fall back a bit” but might not go back to where they were and argued wages and social welfare payments must be increased.