Vol. 559 No. 1
190 Mr. Gilmore asked the Minister for Finance the discussions which have been held at ECOFIN regarding a proposed energy tax directive; his views on the proposed directive; the implications of the directive for taxation here; and if he will make a statement on the matter. [25508/02]
Discussions on a proposed energy taxation directive have been taking place intensively and frequently at Council working group and ECOFIN level with a view to reaching potential agreement on a text by year's end and further discussions are planned. As negotiations are at a critical stage it would not be appropriate to set out my views in detail at this juncture but I shall be taking into account all relevant national, economic, social and environmental factors in making a decision on any final proposed agreement.
In essence, the proposed new energy tax directive is concerned with revising existing minimum excise rates for mineral oils, i.e. petrol, diesel, kerosene, LPG, and heavy fuel oil, last set in 1992 while extending these minimum rates to cover natural gas, coal and electricity. The current proposal represents a significant easing of the provisions when compared to the original 1997 Commission proposal or proposals on the table at the end of last year. While the date envisaged for implementation of the energy taxation directive is 2004, member states, including Ireland, are being offered varying transitional implementation periods. These transitional periods are under discussion as are a series of accompanying derogations that may be applied in certain instances at the discretion of member states.
In arriving at this point, all member states have had to make compromises. Ireland's position has been to try to achieve maximum flexibility in the application of the proposed directive while bearing in mind our long-standing concerns on industrial competitiveness, inflation and impact on the less well-off, as well as Ireland's commitment to the implementation of the Kyoto Accord within the national climate change strategy.
