Carbon levy may be just 1c per litre in next Budget
The carbon tax may be as low as 1c or 2c per litre of petrol or diesel when it is announced in the Budget.
The Green Party wants the carbon tax to come in, even if it is initially nowhere near the 5c per litre proposed by the Commission on Taxation.
Green Party leader John Gormley is also pressing to ensure the carbon tax will be ring-fenced so the proceeds would go to environment projects or to help poor people with their fuel bills -- rather than straight into Government coffers.
Mr Gormley indicated yesterday he was in favour of water charges coming in, but stressed the importance of penalising those who waste water.
The junior coalition party is keen to get the tax included in December's Budget, regarding this as an achievement in its own right.
Conscious of the economic climate, the tax would add only about 1c or 2c to a litre of petrol or diesel and rise in subsequent years.
Important
But the carbon tax is still a priority for the party and would be offered as a sweetener for its membership to continue in government.
Government sources said the carbon tax is likely to start low and be phased in over a number of years. "It would be great to get it in there as a principle. It's about changing behaviour," a source said.
The money raised from the plastic bag and landfill taxes already go into a ring-fenced environmental fund.
The carbon tax funds could go into social welfare payments to tackle fuel poverty and ensure the poor do not end up out of pocket.
Mr Gormley said the issue of ring-fencing the money was important and he was negotiating with Finance Minister Brian Lenihan.
"Of course, every Budget is something that has to be negotiated around the Cabinet table. We've made our views clear.
"I do welcome the fact that we've moved quite a long way now that we are going to get a carbon levy, we are going to see a climate change bill but obviously the devil is in the detail and we have to negotiate to see can the money generated be used to continue the task of reducing CO2 emissions," he said. Mr Gormley said water charges weren't just about revenue-raising.
"Again, it has to be about reducing the amount of water which is wasted.
Windfall
"I believe that what we ought to be doing is not charging people for the use of water, but for the overuse of water -- that means, at some stage, metering. That's the fairest way of doing it.
On the commission's recommendation of a property tax, Mr Gormley said his party wanted a 'windfall tax' on rezoned land. "People who engage in speculative rezonings, a windfall tax has to be imposed. There's also the whole question of site value tax," he said.
He said the question of a property tax and how houses would be valued had "exercised" people most in recent days.
"There's so many proposals in here I can't see all of them being implemented.
"I think it's too early to say, especially before a Budget, what's going to be in and what's going to be out," he added. added.
- Fionnan Sheahan and Aine Kerr
