GREEN ISSUES:Although Green Party Ministers John Gormley and Eamon Ryan expressed considerable satisfaction with the environmental provisions announced by Tánaiste and Minister for Finance Brian Cowen in his speech yesterday, Fine Gael was sceptical and dismissed the Budget as "green-lite".
Commenting on moves to curb vehicle emissions, Minister for the Environment, Heritage and Local Government John Gormley told The Irish Times: "It is a very significant step forward that we are now relating both Vehicle Registration Tax and motor taxation from July onwards for new cars to CO2 emissions. This is something for which environmentalists have been calling for a very long time."
Minister for Communications, Energy and Natural Resources Eamon Ryan said: "In general I'm very pleased, obviously."
The Budget measures reflected "a change in Government thinking and, in a sense, a new strategic direction in the country".
Asked if he felt the green elements of the Budget were due to his party's influence, Mr Ryan said they were the result of "a major strategic change" that "goes across Government".
He added: "I'm confident that Micheál Martin sees the enterprise sense in this, that Brian Cowen sees the financial sense of it, that Bertie Ahern sees it as the correct direction forward."
However, Fine Gael environment spokesman Phil Hogan said that "despite efforts by Ministers Cowen and Gormley to dress it up as a radical departure, today's Budget is 'green-lite'".
He added: "The Budget is staggeringly weak in terms of green initiatives.
"A hike in car tax, the stealing of Fine Gael policy on VRT and the reannouncement of the over-hyped Commission on Taxation do not a green budget make." Mr Hogan said: "After six months in office - but not in power, it seems - the Greens have managed to get nothing with the exception of favourable change in VRT and a vague promise of real change in the future."
The main environmental provisions in the Budget were:
Change in VRT to a pure emissions-based tax. Seven bands, ranging from 14 per cent for low-emission vehicles to 36 per cent for high-emission vehicles. Electric cars will be exempt.
Higher capital allowances for businesses which lease low-emission vehicles. A 1.4 litre diesel car will enjoy a €1,500 reduction in price, while SUVs face increases of €1,000 to €5,600.
An increase of 9.5 per cent in motor tax for cars up to 2.5 litres and 11 per cent for those above.
The main green elements within the Department of the Environment were:
Environmental Protection Agency will receive a 43 per cent increase. National Parks and Wildlife will receive a 31 per cent increase. Funding for the Heritage Council to increase by 14 per cent.
Increase of 43 per cent in energy spending to €26.1 million.
Increase of 39 per cent in communications spending to €17 million.
New pilot funding scheme for insulation grants.
Additional funding for green homes scheme and €12 million in research grants to develop ocean and renewable energy.
Energy-efficiency tax break with measures to include capital allowances for investment in energy-saving equipment.
Mr Cowen said there was growing and incontrovertible evidence of the challenge to us all posed by global warming.
"The Stern Review, together with the recent reports from the UN's Inter-Governmental Panel on Climate Change, illustrates the seriousness of the issue if things do not change. That is why we must act now.
"That action will require changes in the lifestyles we all lead and the choices we make on whether to consume or conserve resources."