Cowen to put 'green' hue on next week's budget

Climate change: The involvement of Taoiseach Mr Ahern and Minister for Finance Brian Cowen at the launch of the strategy for…

Climate change:The involvement of Taoiseach Mr Ahern and Minister for Finance Brian Cowen at the launch of the strategy for Climate Change Communications yesterday is a signal that next week's Budget from Mr Cowen will have a distinct "green" tone, even if only to partly cover the lack of major spending programmes in other areas.

Mr Ahern has been persuaded of the need for drastic action to stop or slow carbon emissions if catastrophic environmental changes are to be prevented in coming decades throughout the world. Mr Cowen will penalise heavily-polluting new cars, although motorists will face smaller vehicle registration bills if they choose smaller models. However, changes to motor taxes are another year away.

Under plans approved by the Department of Finance, some small diesel cars will drop in price by 10 per cent, while some larger petrol models will rise by a similar amount.

Vehicle registration taxes (VRT) will fall on 53 per cent of new car sales and increase on the remaining 47 per cent. The total revenue from VRT, worth €1.3 billion to the exchequer last year, will not rise.

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In his speech, the Taoiseach told doubters: "Climate change is real and it is not going away. Successfully tackling the issue is crucial to our future wellbeing and it will occupy our thoughts and actions for several decades."

Because Ireland is over its Kyoto targets, the Government has committed €290 million to spend in developed countries on carbon-saving there: "If we cut our emissions we will not have to buy credits."

Expressing confidence in the public information campaign, he said the "Race Against Waste" and "The Power of One" had changed public opinions about the need to cut waste and reduce electricity waste.

The chairman of the Oireachtas Climate Change Committee, Fine Gael TD Seán Barrett, said yesterday he was "disappointed not to have been involved in the climate change launch". His committee colleague Liz McManus (Lab) said the oversight was not acceptable and a "fairly stiff letter" should be sent recording the committee's disappointment.

Ibec director general Turlough O'Sullivan welcomed the awareness campaign. "Education and awareness are vital to provide business and individuals with the information to make the required changes. Irish industry, which is amongst the most energy efficient in the world, strongly supports the initiative."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times