Mary Flaherty
Ceist:31 Miss Flaherty asked the Minister for Energy if he will outline the outcome of the December Joint EC Energy/ Environmental and Finance Council meetings in relation to the CO2 tax proposals.
Ceisteanna—Questions. Oral Answers. - CO2 Tax Proposals.
The Joint Energy/Environment Council held on 13 December last concluded that: (1) for CO2 stabilisation to be realised in a cost-effective way, higher energy pricing through the use of fiscal instruments is likely to be needed to complement national and Community efficiency programmes; (2) the introduction of Community-wide taxation would pose a range of complex issues including economic and social consequences, and energy policy consequences in member states; (3) studies on these issues are necessary and should be undertaken; (4) the Commission is to put forward formal proposals including proposals for a Community tax taking account of the studies when they become available; (5) every effort should be made by the Community to ensure other countries, notably major trading partners, undertake commitments on the lines of those undertaken by the Community; and (6) the Commission should continue its preparatory work on a Community strategy for the negotiations of a Climate Change Convention and the UN Conference on Environmental and Development (UNCED) process to allow a Council decision in May 1992 in preparation for the RIO Conference.
The Finance Council on 16 December 1991 took note of the conclusions of the joint Energy/Environment Council. The Council also agreed to resume its discussions on the CO2 subject before May in preparation for the RIO Conference.
Arising out of his discussions in December, is the Minister still as optimistic as he was on the last occasion he answered questions in the House that the proposed tax will not become a reality? Does he still hold that view?
Nobody can say what the outcome of these discussions will be. Many of the difficulties were highlighted at the joint Energy Environment Council. All countries are hopeful that the RIO conference, which will seek to adopt a global convention on CO2 emissions, will be successful. The working papers for that conference do not include a proposal for a tax of this kind. This matter is being discussed within the European Community and I could not forecast what the outcome will be. I can tell the Deputy however that we have highlighted the many complex issues which would have to be overcome and the difficulties which could be created. Of course, the difficulties that would be created for trade would be enormous if this tax was to be implemented within the European Community and our trading partners in the world were not subject to such an imposition. Therefore many issues remain to be resolved.
Let us have a reply to Question No. 32, please.
May I ask a supplementary?
Question No. 32, please.