Question:
39 Mr. Coveney asked the Minister for Finance his views on environmental, green or carbon taxes; the discussions, if any, at ECOFIN on these taxes; and if he will make a statement on the matter. [23698/98]
Written Answers - Environmental Taxes.
As the House will be aware, the EU Commission introduced a proposal for the taxation of energy products in March 1997. No agreement on the proposal has been reached by technical groups reporting to the ECOFIN Council. Discussions on the broad thrust of the proposal have taken place at Council but no decisions have been reached.
As I have stated previously in the House, it is necessary from an environmental viewpoint to examine these taxes constructively. Nonetheless, while the imposition of a carbon tax — at either EU or domestic level — may influence both private and industrial consumers in their use of energy products, I would be concerned, as Minister for Finance, to ensure that any measure which is advanced to promote energy saving does not adversely affect Ireland's competitiveness. I am also concerned about the effect the imposition of any such tax would have on the Consumer Price Index and how the tax would impact on the less well off members of the community.