Vol. 397 No. 6
69 Mr. Noonan (Limerick East) asked the Minister for Energy whether he has assessed the impact which harmonisation of the taxes on oil products might have on the demand for oil products in Ireland; and if he will make a statement on the matter.
The question of tax harmonisation on oil products is, primarily, a fiscal matter which is the responsibility of the Minister for Finance. I understand that the most recent Commission proposals have only very recently been received by the Department of Finance and discussions on the whole question of tax harmonisation are progressing. I understand that this subject was discussed but not resolved at a recent meeting of EC Finance Ministers. The matter will be discussed again at future such meetings. It is not possible to say at this stage whether and on what products there would be a change up or down in the prices, due to any tax rate change. Different oil products have a different price elasticity. I have not at this stage attempted anything more than a broad assessment of the possible form of EC harmonisation but my Department will keep in regular contact with the Department of Finance as the situation unfolds.
I must stress, however, the very preliminary nature of EC deliberations at present and no definitive conclusions or assessments should be made on the basis of the initial proposals.
