Tuesday, 5 November 2019

Questions (133)

Michael McGrath


133. Deputy Michael McGrath asked the Minister for Finance when legislation will be brought forward to ring-fence the extra funds taken in from the increase in carbon tax; if it will be inserted into the Finance Bill; and if he will make a statement on the matter. [44653/19]

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Written answers (Question to Finance)

In Budget 2020 I announced that the revenues from the increase in the carbon tax from €20 to €26 per tonne CO2 would be ring fenced and the funds used to protect the most vulnerable in society, to work towards a Just Transition and to invest in low carbon transition.

On 9 October 2019, the Department of Public Expenditure and Reform published "The carbon tax increase - what it will be spent on", which sets out specific details in relation to where the ringfenced monies will be going. This can be accessed at: https://assets.gov.ie/35942/a72c67a62786496686fa9257b3f6fa64.pdf.

These are increases that would not have taken place in the absence of an increase to the carbon tax and the increased funding is additional to that provided by the National Development Plan. All funds are ring-fenced for these schemes only. Departments will not be allowed to use the carbon tax revenues for any other purpose, other than the specified schemes.

I am satisfied that this approach will enable the continued ringfencing of additional carbon tax revenues to protect the most vulnerable in society, to work towards a just transition and to invest in low carbon transition in future years.