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Dáil Éireann debate -
Tuesday, 2 Nov 1999

Vol. 509 No. 6

Written Answers. - Environmental Taxes.

Eamon Gilmore

Question:

286 Mr. Gilmore asked the Minister for Finance his views and intentions on eco-taxes; the proposals, if any, for the further introduction or the harmonisation of eco-taxes which have been considered at ECOFIN; and if he will make a statement on the matter. [21046/99]

Environmental taxes include taxes on energy and I assume the Deputy is mainly referring to the proposed EU Directive on the Taxation of Energy Products, which continues to be the subject of EU discussion. If this is the case, I refer the Deputy to my reply to Parliamentary Question No. 4 on 24 June 1999.

Ireland has expressed concerns on a number of occasions about the proposed directive. Our concerns relate to our peripheral status, the greater dispersal of population which adds to transport costs and the need to maintain competitiveness in the EU versus third countries. My particular concern as Minister for Finance is to ensure that any measures advanced to promote energy saving does not adversely affect Ireland's international competitiveness, particularly in relation to non-EU countries which compete with us and which may have very low taxes on energy. I am also concerned about the effect the imposition of any such energy tax would have on the consumer price index and how increased tax and new taxes would impact on the less well off members of the community.
However, I have also made it clear that Ireland does not wish to hold back the remainder of the community. Therefore, we will be working with the Finnish Presidency to make every effort to reach some agreement on this issue, bearing in mind my previous comments with regard to competitiveness and any adverse effects on the consumer price index and the less well off. The proposed directive has been discussed on a number of occasions at ECOFIN, but no measure of agreement has been reached.
Ireland has for several years sought to develop tax measures which are environmentally driven, including the new higher rate of vehicle registration tax introduced last year. As I said in my December 1998 Budget Statement, we need to put in place an agreed indirect tax policy which will assist us in formulating a green tax policy. Such a policy needs the support of all sections of the community as represented by the social partners. The formulation of such agreed policy, in my view, would be part of the discussions on the successor to Partnership 2000.
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