Sargent denies fuel levy would lead to dearer petrol

Manifesto launch : The Green Party has described as "nonsense" claims that its taxation proposals would add at least €1 to the…

Manifesto launch: The Green Party has described as "nonsense" claims that its taxation proposals would add at least €1 to the price of a litre of petrol.

Party leader Trevor Sargent said there had been a "mud-slinging campaign" by the Progressive Democrats because their vote was under serious threat from the Greens.

Launching the party's manifesto, Mr Sargent rejected suggestions that proposals for a carbon tax of €20 a tonne would add significantly to people's fuel bills. He said the levy would lead to a rise of no more than five cent a litre, and that it was designed to operate as a signal to consumers about the environmental cost of fossil fuels.

"It's a trigger mechanism similar to the plastic bag tax," he said.

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Green Party finance spokesman Dan Boyle said the replacement of vehicle registration tax and motor tax with an environmental fuel levy would not add significantly to petrol prices. It would be phased in at a rate of 2.5 cent a litre over 10 years, Mr Boyle said. He rejected suggestions his party was in favour of higher taxes. He said the Government had actually increased the tax take to 3.5 per cent of gross domestic product and the Greens were committed to reducing this to 3 per cent.

Party chairman John Gormley also described as "outlandish" claims by Tánaiste and PD leader Michael McDowell that the Green proposals would add €1 to petrol prices and that the party would abandon the current inter-urban motorway building programme.

Mr Sargent said the party would honour all current road contracts. However it would seek to renegotiate the proposed M3 motorway contract and its controversial route through the Tara-Skryne valley. The Green manifesto indicates that public transport funding would be given priority ahead of road funding.

On the controversy surrounding the Taoiseach's finances, Mr Sargent said Bertie Ahern had failed to clarify matters. Mr Ahern was "being Jesuitical" about it.

"He has created more confusion than clarity. When he uses the word completeness he needs to mean it."

The party's manifesto has also proposed significant electoral reforms. The number of TDs would be reduced from 166 to 130.

A list system would also be introduced where up to 30 TDs would be selected. The Dáil sitting time would also be doubled.