Carbon tax will not be introduced in Budget
Monday August 25 2008
NO carbon tax will be imposed in the forthcoming Budget, despite worsening emissions rates in this country and a promise to introduce the measure in the Programme for Government.
The Green Party is privately conceding that the measure is off the table for the December Budget -- the second year in a row that consumers will escape.
A spokesman for the Minister for the Environment, John Gormley, said last night that the matter was complex, and the party was seeking to introduce carbon pricing in a "holistic" way that would achieve equity but also prove effective across the economy.
The carbon tax is still on the agenda after the junior Coalition partner forced its inclusion in the Programme for Government. Former Finance Minister Charlie McCreevy had promised to impose a carbon tax -- which would have impacted on petrol and diesel prices in particular -- but shelved the idea under political pressure.
Fianna Fail believe they may have blunted the Green Party drive to make the polluter pay for emissions, despite the recent rebalancing of car tax rates, by emphasising the need to protect vulnerable sections of society.
At the same time, however, Taoiseach Brian Cowen has warned party members -- in a message sent out last week -- that the Government could not delay making important decisions to control climate change.
The Greens are, meanwhile, reportedly seeking a lowering of speed limits to cut emissions, but denied this was intended as an interim measure amid a lack of progress in other areas.
A spokesman said last night: "We are absolutely committed to the carbon levy, and it is in the Programme for Government. Road traffic speeds are ultimately a matter for the Department of Transport."
The issue of a temporary reduction in motorway speed limits is due to be discussed at a Cabinet subcommittee this week, with reports that the Greens want to bring speed limits down by 15mph to 60mph on motorways, and by 10mph on national primary roads. This would require confirmation by the entire Cabinet.
The idea follows alarming evidence that Ireland's carbon footprint is continuing to grow, despite promises to cut it under the Kyoto Protocol.
Green party Senator Dan Boyle said the party was "critically looking at our speed limits", adding: "It won't actually cost people anything, and they will see their fuel bills fall."
Meanwhile, a new report by the Economic and Social Research Institute (ESRI) estimates that a carbon levy could cost households €208 a year.
A levy would weigh disproportionately on rural households, according to the report, since houses are bigger, distances longer and more transport involves the use of cars in rural areas.
- Senan Molony Deputy Political Editor
