Patrick McCartan
Question:25 Mr. McCartan asked the Minister for Energy if he will outline his reponse to the recent ESRI study of the implications of the proposed EC carbon tax.
Written Answers. - EC Carbon Tax.
The ESRI Paper The Economic Effects of Carbon Taxes is an interesting contribution to the question of the implications for Ireland and the EC Commission's proposal for an energy/carbon tax.
A national carbon dioxide abatement strategy is being prepared by the Department of the Environment in consultation with my Department for submission to the EC Commission following consultation with other Departments concerned and receipt of Government approval. This strategy will make appropriate allowance for growth in Ireland's CO2 emissions, reflecting our economic development circumstances which are different from the more mature economies of many other EC member states.
Ireland still has an open mind on the approach to be adopted by the Commission to achieve limitation of CO2 emissions by the year 2000. However, we consider that much greater analysis of the proposal is needed both at Community and member state level before any informed decision is made on the matter. Of course, cognisance will be taken of the ESRI paper when consultations and discussions between my Department and other relevant Departments on the tax issue are taking place.
The Deputy will be aware of the position adopted by the EC Commission, that the introduction of such a tax would be contingent on similar measures being adopted by the Community's principal trading partners.