M. J. Nolan
Question:84 Mr. Nolan asked the Minister for Finance if he intends to introduce a carbon energy tax in respect of the activities of a company (details supplied) in County Carlow. [16055/95]
Written Answers. - Carbon Energy Tax.
The Government's approach to carbon energy taxation is set out in the policy agreement, A Government of Renewal, which states that the Government will contribute to the preparation of a pan-European taxation policy on carbon and fossil fuel inputs.
In this regard, the Government has already decided in June 1993 that Ireland should not oppose the principle of the introduction of an EU carbon/energy tax, provided that, inter alia, our concerns regarding the competitiveness of EU industry generally and of energy intensive firms that face competition from non-EU firms that are not subject to similar charges were satisfactorily addressed. The European Council, meeting in Essen last December, noted the Commission's intention of submitting guidelines to enable each member state to apply a carbon/energy tax on the basis of common parameters if it so desires; the Council of Economic and Finance Ministers was instructed to consider appropriate parameters. This approach is in contrast to previous efforts to establish a mandatory EU wide regime in this area.
The Commission has now presented proposals in the matter. They propose that a framework would be put in place to allow member states who wish to have such tax the opportunity to do so but no member state would have to charge the tax during a transition period up to 2000. However, at the end of the transition period, the Commission proposals envisage the tax being applied by all member states. These proposals are now being examined by Ireland, along with other EU member states.