Trevor Sargent
Ceist:81 Mr. Sargent asked the Minister for Finance if he is committed to reforming tax to include a carbon tax in the forthcoming budget. [25281/01]
Written Answers. - Tax Code.
As the Deputy is no doubt aware, it is not customary for the Minister for Finance to indicate in advance what measures, if any, will be taken in the budget. It is not my intention to break with this tradition.
As provided for in the national climate change strategy, a cross-departmental climate change team has been established to ensure early implementation of the strategy. The team is chaired by the Department of the Environment and Local Government. A number of support groups have also been established to assist the team including an economic analysis sub-group. Taxation issues arising from the work of the climate change team are considered 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. However, 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.
The national climate change strategy acknowledges that a broad range of issues including those just mentioned go to make up the policy mix to be addressed in such a strategy.