Dáil Éireann Debate, Wednesday - 19 May 2010
185 Deputy Bernard J. Durkan asked the Minister for Tourism, Culture and Sport the extent, if any, to which she proposes to take steps to address the negative impact of the carbon tax on the tourism sector with particular reference to transport and heating costs; and if she will make a statement on the matter. [21055/10]
Amharc ar fhreagraFiscal policy and taxation, including the impact of specific taxes on particular sectors of the economy, are matters for my colleague the Minister for Finance, Mr Brian Lenihan TD, in the first instance. In line with the Programme for Government commitment, my colleague Mr Brian Lenihan, TD, Minister for Finance, announced in Budget 2010 that a carbon tax at a rate equivalent to €15 per tonne would be introduced on fossil fuels. This carbon tax came into effect on 10 December 2009 in respect of petrol and auto-diesel and, since 1 May 2010, also applies to home heating oils and gas.
Since the carbon tax applies directly to the amount of fuel a consumer uses, the more energy efficient a business is, the less impact the carbon tax will have on fuel costs of that business. In this regard, there are several supports available to help Irish businesses (including those in the tourism sector) make more efficient and sustainable use of resources, thus benefitting the business itself, the local economy and the environment. Such supports include guidance available from and programmes administered by the Sustainable Energy Authority of Ireland (SEAI) and by the Environmental Protection Agency (EPA), for which my colleagues the Ministers for Communications, Energy and Natural Resources and for the Environment, Heritage and Local Government are responsible, respectively. Furthermore, there is also a scheme of accelerated capital allowances for energy efficient equipment, a tax incentive aimed at encouraging companies across all sectors to invest in energy saving technology (as approved and listed by the Minister for Communications, Energy and Natural Resources), which was extended in Budget 2010 to include catering and hospitality equipment.
The promotion of good environmental practice within the tourism industry, including the provision of advice on increasing energy efficiency and on the use of sustainable technology, is a matter for Fáilte Ireland, the National Tourism Development Authority. I am advised that information on available supports (including general advice, mentoring and auditing, training and formal accreditation) is available on the Business Supports — Environmental Guidelines section of the Fáilte Ireland website and directly from Fáilte Ireland's Environment Unit, which can also provide further advice and support. I am further advised that Fáilte Ireland's Environment Unit has prepared an information sheet outlining the cost implications of this tax and directing businesses to the many supports available to help monitor and reduce energy usage, and thereby reduce the impact of the carbon tax.
I understand that the carbon tax may cause some pressures for certain businesses. In the context of the overall cost base, for most firms, these should be minimal. Furthermore, it is expected that the move to price carbon will encourage innovation by incentivising companies to bring low carbon products and services to the market. I am confident that the Irish tourism industry will demonstrate its capacity for innovation and efficiency in this regard, as it has consistently done over many years, with the supports I have outlined from the relevant agencies in the energy, environmental and tourism areas.
