Dáil Éireann debate -
Tuesday, 19 Feb 2002

Vol. 548 No. 5

Written Answers. - Tax Code.

Trevor Sargent

Question:

63 Mr. Sargent asked the Minister for Finance if, in view of unprecedented and rising levels of storm damage and evidence of climate change, he will take a longer term view of the benefits nationally and globally of measures such as eco-taxation to replace traditional tax. [5583/02]

Minister for Finance (Mr. McCreevy):

It is unclear what type of eco-taxes the Deputy has in mind or what type of traditional taxes the Deputy wishes to replace.

The national climate change strategy provides a framework for achieving greenhouse gas emission reductions in the most efficient and equitable manner while continuing to support economic growth and to prepare Ireland for the more ambitious commitments that will be required after 2012.

As provided for in the strategy, a cross-departmental climate change team has been established to ensure its early implementation. The team is chaired by the Department of the Environment and Local Government. A number of support groups have also been established to assist the team including an economic analysis sub-group. Work is ongoing. Taxation issues arising from the work of the climate change team are considered by the tax strategy group which is chaired by an official from my Department.

As I have said in the past, taxation can play a part in attaining environmental goals. As Minister for Finance, I am concerned to ensure that tax measures take into account the effect on Ireland's international competitiveness, particularly in relation to non-EU countries which compete with us and may have low taxes on energy. I am also concerned in framing policy about the effect that the imposition of such taxes may have on the consumer price index and how they could impact on the less well off members of our community.