THE GOVERNMENT is likely to introduce a carbon tax in December’s budget, Minister for Communications, Energy and Natural Resources Eamon Ryan has said.
Mr Ryan said the markets needed a clear signal that Ireland would reduce its dependence on fossil fuels. “I have always felt that putting a price on carbon sends a signal across the market towards a more efficient use,” he told RTÉ.
Asked when a carbon tax would be introduced, he replied: “I think this year we will see the introduction of a carbon tax or other interim measures that provide that sort of strategic direction,” the Green Party minister said.
His view was supported by his party leader and Minister for the Environment John Gormley later yesterday. However, Mr Gormley was less specific about it being introduced in December’s budget.
“This is a matter for the Minister for Finance,” he said. “This is top of the agenda for the Taxation Commission. They will be reporting back in September. A commitment has been given by the Minister for Finance that there will be the introduction of a carbon tax. This gives price stability. It tells the market that there is a floor when it comes to fossil fuels and people have to take that into account.”
Mr Gormley the Government’s investment strategy would focus more on sustainability and the environment. “We are clearly entering a new era of green technology. If you look at the way that this has been embraced elsewhere . . . you see there are tremendous opportunities in this country.” Referring to the redundancies at Dell in addition to the downturn in the economy, he said: “You can look upon the current recession as a crisis, I look upon it as an opportunity to go into the whole area of green technology.”
Fine Gael’s spokesman on energy Simon Coveney last night said that the Government must guarantee that any carbon tax would be revenue neutral and would result in a lowering of other tax measures to compensate the taxpayer.
