Written Answers. - Motor Fuels.
Derek McDowell
Ceist:
192
Mr. McDowell
asked the
Minister for Finance
his views on whether proposals to raise transport fuel taxes by at least 30p per litre contained in the national climate change strategy recently published by the Minister for the Environment and Local Government are inflationary and will not be implemented in view of the measure regarding fuel taxation contained in the budget to address inflation; the reason he chose to support such measures in the first instance; and the alternative fiscal measures he proposes to take.
[4790/01]
There is no proposal contained in the national climate change strategy to raise transport fuel taxes by 30p per litre. In relation to taxation, the strategy includes the following:
"Policy in relation to taxation is guided by the following considerations:–
maintenance of the stable economic environment and fiscal policies which are necessary to support economic growth, enterprise promotion and international competitiveness;
development of policies in a social partnership context, with a consensus on the need for prudent economic and fiscal policies, wage levels and targeted tax reductions to bring about tangible improvements in living standards, and tackle social exclusion, including with improved social services;
securing low inflation and economic and employment growth in the context of the Stability Programme to ensure compliance with the EU Stability and Growth Pact;
maintaining budget positions in balance or in surplus in normal economic circumstances and running significant budget surpluses, leading to continuing reductions in the General Government debt; and
taxation reforms and changes to enhance work incentives, particularly for the lower paid, address unemployment and poverty traps increasing the effective labour supply, to promote greater equity and to improve the interaction between the tax and social welfare systems.
These overall considerations are of prime national importance and the introduction of greenhouse gas taxation will be undertaken in a manner compatible with them."
The strategy also points out that the analysis and assessment of taxation measures will be overseen 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 which 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.
