Gormley welcomes 'green' Budget

Environment/reaction: Green Party leader and Minister for the Environment John Gormley welcomed what he said was the first budget…

Environment/reaction:Green Party leader and Minister for the Environment John Gormley welcomed what he said was the first budget in the State's history to contain a strong "green" dimension.

The Minister said today's Budget placed "a strong emphasis on the fight against climate change".

A hike in car tax, the stealing of Fine Gael policy on VRT and the re-announcement of the over-hyped Commission on Taxation do not a Green Budget make
Phil Hogan, Fine Gael

Mr Gormley said there were new measures to start curbing carbon emissions through "innovative changes" to vehicle registration tax and motor tax. There are also new incentives for companies to switch to less polluting, more fuel-efficient cars, he said.

"Budget 2008 shows that the Green Party can deliver in Government in co-operation with our coalition partners. It is a very good start - and one we intend to build upon during the coming four-and-a-half years."

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Mr Gormley will deliver a "carbon budget" tomorrow, outlining the environmental impact of many of the measures announced by Minister for Finance Brian Cowen today.

Fine Gael environment spokesman Phil Hogan said the Budget was "staggeringly weak in terms of green initiatives".

"A hike in car tax, the stealing of Fine Gael policy on VRT and the re-announcement of the over-hyped Commission on Taxation do not a Green Budget make.

"Today's Budget also shows Irish taxpayers will next year begin to pay the price of failure to meet our Kyoto targets to the tune of €10 million in carbon credits. In the same set of figures we see no increase in climate change funding whatsoever," Mr Hogan said.

Director of environmental group Friends of the Earth Oisin Coghlan said the Budget was "one small step towards sustainability".

"But we still need a giant leap. The VRT changes are welcome but if the Government is going to deliver on its promise to cut climate-changing pollution by 3 per cent a year then we need similar price incentives to reduce pollution across the whole economy," he said.

"We need to see a carbon tax or another form of carbon pricing no later than next year's budget. So today was just a curtain-raiser. We need to see the main act in a year's time."