A range of industries has warned that carbon taxes could lead to job-losses and higher prices, in submissions made to the Department of Finance.Cliff Taylor, Economics Editor reports
Murphy Brewery in Cork and Irish Cement in Drogheda are among the businesses that warned that additional costs could endanger their operations.
The precise impact on many of these firms, however, will be heavily influenced by their allocations under the emissions trading scheme, due to be announced shortly by the Environmental Protection Agency (EPA).
Submissions from a variety of Government Departments, businesses, representative groups and individuals on the carbon taxes were published yesterday on the Department of Finance website. The Department had invited them in response to a consultation paper on the issue.
The tax is due to be introduced next year as part of the climate change strategy to reduce fossil fuel use.
Various heavy industries warned that heavy costs from a new carbon tax regime would threaten their futures here.
Irish Cement, which employs more than 500 people in Plattin in Drogheda, said the proposed new regime could "threaten the very existence and development of cement manufacturing in Ireland". The range of carbon taxes proposed, from €7.50 to €25 per tonne of carbon, would add €6 to €20 million per annum to the company's fuel costs. This would make cement production uncompetitive, it said.
As a big producer, Irish Cement is likely to be included in the emissions trading scheme, which covers large energy users and allows them to buy additional emission rights.
While companies involved in emissions trading are likely to be largely excluded from carbon tax, Irish Cement argues that the emissions trading system is "ill-conceived and premature" and could also push up its costs.
The Government has recently announced the overall allocation to the industry sector under emissions trading, in what has been seen as a relatively generous allocation. The EPA will shortly announce the allocation for individual companies, which will be crucial for costs in these firms.
Premier Periclase, the magnesia producer in Drogheda, said additional costs would result in closure and job-losses. It is also likely to be affected by the emissions trading allocation.
Heineken, which owns Murphy Brewery in Cork, said that costs from the new tax "would put in question the viability of our existing production facility in Cork", making it uncompetitive with breweries based in the UK.
Construction materials companies warn that additional tax will push up the costs of their products, while Irish Rail warns that it would have "major adverse cost implications" and lead to higher fares.
Employers' group IBEC outlines its strong opposition to the tax, and industries' reservations are echoed in a submission from the Department of Enterprise, Trade and Employment.
