Written Answers - Greenhouse Gas Emissions.
Breeda Moynihan-Cronin
Question:
128
Ms B. Moynihan-Cronin
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
her Department's assessment of the implications for industry of the proposed carbon taxes; and if she will make a statement on the matter.
[8124/03]
Eamon Ryan
Question:
135
Mr. Eamon Ryan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if her Department has entered into discussions with the Government's tax strategy group to discuss possible competitive implications for Irish enterprises in the proposed introduction of a carbon tax.
[8156/03]
I propose to take Questions Nos. 128 and 135 together.
The proposed introduction of carbon tax is in response to our international obligations under the Kyoto Protocol to reduce emissions of greenhouse gases. Taxation is one of the measures included in the Government's national climate change strategy, which sets out a framework of mechanisms to help Ireland meet its international commitment. The Department of the Environment and Local Government brought forward proposals for the introduction of a carbon tax to the Department of Finance, in advance of the budget last December and the tax strategy group considered this proposal. Papers relating to this issue are available to view on the Department of Finance website. Agreement was not reached on the proposal at that time, however, the Minister for Finance signalled the introduction of a general carbon tax from the end of 2004, in his budget speech. The tax framework has not yet been developed. The Minister made it clear that given the many implications of such a tax, both environmental and economic, there will be full consultation with interested parties on the design of the tax. This commitment to consultation is reiterated in the draft social partnership agreement, Sustaining Progress, which states that, in keeping with Ireland's obligation under the Kyoto Protocol to reduce greenhouse gas emissions and the announcement in the budget regarding the development of a general carbon tax, there will be full consultation with the social partners having regard to the potential implications for jobs, competitiveness and social inclusion.
I expect that the Minister for Finance will initiate consultations to develop a framework for the tax shortly. My Department will be fully involved in the development process, where important issues with implications for industry are likely to include, the level at which the tax will be set, the question of exemptions or reductions for companies engaged in other greenhouse gas reduction measures such as emissions trading and negotiated agreements and the question of recycling the tax. In developing the tax framework, a crucial consideration will be minimisation of any impact on competitiveness.
In relation to competitiveness, Forfás, in conjunction with my Department, has commissioned studies to assess how best to achieve the reduction targets specified for the enterprise sector in a way that would minimise the effects on competitiveness. These studies focused on taxation, negotiated agreements, emissions trading and investment in international greenhouse gas reduction projects. Industry representatives participated in the steering group for these studies. This work has been contributing to the development of policy for emission reductions in the enterprise sector and will be useful source of information in developing a framework for carbon taxation.
Question No. 129 answered with Question No. 116.
