Minister for Finance accuses SF leader of ‘hypocrisy’ in Dáil carbon tax row

Minister for Finance Paschal Donohoe has accused Sinn Féin leader Mary Lou McDonald of hypocrisy over her opposition to a carbon tax increase.

Ms McDonald said the Government was “tinkering” and international evidence showed that carbon taxes did not work.

“They don’t reduce carbon emissions.They don’t change people’s behaviour.”

The Government proposes a €6 euro increase per tonne in carbon tax in the Budget next month, and an incremental increase each year over the next decade.

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During sharp exchanges in the Dáil on Tuesday Ms McDonald said the young people who protested for action against climate change , “didn’t ask you to tinker around the edges, they didn’t ask for half measures, they didn’t ask you to pass the buck”.

But she said the Government’s carbon tax increase “is exactly that - tinkering, a half measure and a case of passing the buck” to low and middle-income families while giving “wealthy corporates a pass”.

Carbon tax had been in place in Ireland for 10 years but "emissions have risen rapidly".

Accusing her of hypocrisy, Mr Donohoe said “Sinn Féin has form in this - you support broadening of tax bases but oppose property tax. You support investment in water infrastructure but are against water charges.”

The Minister, who shares the Dublin Central constituency with Ms McDonald said “I am well aware of the impact the change in carbon pricing can have” on people on low incomes.

But he was equally aware of the body of international evidence showing carbon tax was essential.

He quoted the chair of the climate change advisory council John Fitzgerald and said a "massive body of evidence from across the world shows that carbon tax is essential" and also noted a statement from US economists including 27 Nobel prizewinners identified carbon tax as essential.

The Minister said “changes in pricing of carbon are an invaluable way of regarding how economies need to respond to the existential challenge of climate change”.

He said an element of the change required “needs to be how we can evolve the pricing of carbon in the future”.

Ms McDonald said that “tokenism isn’t going to cut it” and her party did not indulge in that.

Mr Donohoe retorted that “tokenism is not going to cut it but hypocrisy is not going to cut it either”.