Carbon taxes must not 'prop up' Exchequer - FG

Plans by the Government to introduce a range of carbon taxes to curb pollution should not be used to prop up the Exchequer's …

Plans by the Government to introduce a range of carbon taxes to curb pollution should not be used to prop up the Exchequer's ailing finances, Fine Gael has said.

Newspaper reports this morning said a Cabinet meeting tomorrow will hear that the Department of Finance is seeking approval for a range of such energy taxes.

Levies on fossil fuels will hit business and the general public, leading to a rise in electricity charges, petrol and the cost of oil for home use and manufacturing.

This morning's report said the ESRI estimated such taxes could cost every household €250 a year and raise €860 million for the Exchequer.

READ MORE

Fine Gael environment spokesman Mr Bernard Allen said the proposals for carbon taxes should not be used to "prop up" the Fianna Fail/PD Government's "ailing finances on top of the dirty dozen stealth taxes imposed since the general election.

"It is vital that carbon taxes, if introduced for environmental reasons, and not crude financial reasons, must be imposed with a well-worked out strategy to deliver changes in behaviour of people and businesses," Mr Allen said.

He called on the Government to "ring-fence" the revenue from carbon taxes for energy-saving purposes and to improve emissions and to set the rate of the taxes at a level that does not put Ireland at a significant disadvantage to other countries.

Ireland faces millions of euro in fines if it fails to reduce greenhouse gas emissions under the Kyoto Agreement. Our emissions are limited to an increase of just 13 per cent by 2012 - but have already risen by 31 per cent.