Minister warns on energy taxes as report published

Energy taxes or pollution charges which hit people "in their pockets" need to be introduced if the Republic wishes to meet its…

Energy taxes or pollution charges which hit people "in their pockets" need to be introduced if the Republic wishes to meet its environmental targets, the Minister for the Environment, Mr Dempsey, has warned.

In his strongest signal yet that the Government planned to introduce energy taxes, which could impact dramatically on fuel prices, the Minister said, "It is something that I think will happen."

He said: "We have to modify people's behaviour. We have seen from litter and various other things that appealing to their sense of care for the environment, or anything like that, is just not sufficient. You have, in a sense, to hit them where it hurts and that's in their pockets."

He was speaking yesterday at the presentation of "Ireland's Environment - A Millennium Report", by the Environmental Protection Agency, which recommended a broad range of new green policies, including "radical changes" to reduce greenhouse gas emissions.

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Under the 1997 Kyoto Protocol, Ireland is committed to limiting such emissions in the period 2008-2010 to 13 per cent above 1990 levels. The report says, however, that based on the most recent forecasts for energy and agriculture, net emissions will have increased by 30 per cent, more than double the target, in that period.

The Minister said he would shortly bring before Government the long-awaited National Greenhouse Gas Abatement Strategy, which would establish a framework for meeting Ireland's Kyoto target.

Attempts to ensure that each Government Department was "eco-audited" or "environmentally-proofed" were already in train, he said. Discussions were being held with the Minister for Finance in relation to possible anti-pollution measures, including energy taxes.

A report last month commissioned by the employers' group, IBEC, estimated that such taxes in their mildest form would add 7.6 per cent to electricity, gas, oil and coal prices. More penal taxes, such as carbon taxes, would lead to price rises in excess of 20 per cent, the report said.

The Minister noted there were also moves at EU level towards energy taxation. Ireland had been one of two countries in Europe which objected to the concept but "we have removed our block and are prepared to consider it".

Of the EPA report in general, Mr Dempsey said he was "pleased to note the headline conclusion that, overall, Ireland's environmental quality remains relatively good in comparison with that of most other European countries.

"But equally I take seriously the recognition that our environment is now under significant pressure.

"There is no room for complacency. The report is set against the backdrop of a period of record economic growth - an achievement of which we can all be proud. The downside, in terms of damage to the environment and depletion of our natural resources, can only be avoided by resolute measures to step up environmental protection."

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column