Proinsias De Rossa
Question:40 Proinsias De Rossa asked the Minister for Finance his views on the EU Commission's proposals in relation to energy taxes; and if he will make a statement on the matter. [9339/00]
Written Answers. - Energy Taxes.
As the House is aware from replies to previous questions on this issue, the EU Commission presented a proposed EU Directive on the Taxation of Energy Products in March 1997. The proposed directive has been discussed at working party level and at Ecofin, but it has not been possible to reach agreement on its implementation. There has been no discussion on the proposal during the current presidency and no dates for future meetings are scheduled.
Ireland has expressed concerns on a number of occasions about the proposed directive. Our concerns related 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 measure 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 low taxes on energy. I am also concerned about the effect the imposition of any such energy tax may have on the Consumer Price Index and how increased tax and new taxes would impact on the less well off members of the community.
The House may also be aware of the proposal from the EU Commission to impose a tax on aviation fuel used in commercial aircraft which was presented and discussed at Ecofin on 13 March 2000. While I expressed reservations regarding the imposition of this tax at the meeting, I understand that this issue may be examined in detail at working party level over the coming months. Pending those discussions, I do not propose to comment further on the issue at this time.