IBEC opposes `greenhouse gas' tax

IBEC will oppose any attempt at national or EU level to introduce an energy tax as part of the effort to reduce greenhouse gas…

IBEC will oppose any attempt at national or EU level to introduce an energy tax as part of the effort to reduce greenhouse gas emissions which scientists blame for causing climate change.

In its environment policy document, IBEC says global warming "is a global problem requiring an agreed global solution". The unilateral imposition of an energy tax would have "a serious detrimental effect on the competitiveness of European and Irish industry".

It describes the prospect of climate change as "a matter for genuine public concern". IBEC says it shares this concern and believes industry "must co-operate with governments and others to seek economic and internationally agreed solutions".

However, in the post-Kyoto reapportionment of greenhouse gas reductions under EU regulations it "must be recognised that the growth potential of the Irish economy is higher than the EU average and realistic targets which cater for this growth must be agreed".

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IBEC says it supports the use of long-term agreements with industry as an efficient and effective alternative to taxation. Such "voluntary, negotiated agreements" to achieve environmental goals could produce "affordable and cost-effective solutions".

According to the document, Irish industry "has performed well in the environmental arena and should receive due recognition for its success". This included a reduction of 19 per cent in energy use between 1980 and 1993, when GDP grew by 58 per cent.