Derek Nolan (Galway West, Labour) | Oireachtas source

The carbon tax was introduced in 2010 as a very important element of our climate change strategy. The rate of tax with effect from 1 May 2013 is based on a €10 charge for CO2 and will increase to €20 per tonne with effect from 1 May 2014. This will have a particular impact on people who use solid fuel. Leaving aside large industry, businesses and SMEs who may be able to absorb costs even though that is not even said, it will translate into a very tangible price increase of €1.20 on a bag of coal and 26 cent on a bale of briquettes. This will be a doubling of that charge on those products compared to the year before so we are talking about €2.40 on a bag of coal. One is talking about possibly two to three bags of coal per week for people who use coal as the main fuel to heat their homes, for example, pensioners who have to keep the range on to keep warm. That is €7 and if one puts that out over a year, one is talking about a significant amount of money from people who are very challenged financially at the moment. It is not a luxury. It is not like we are talking about incentivising and different emissions or that there are other products they can use. If one has a range in one's house or a fire one uses to heat the home, coal is what one uses. Unless we are going to give people grants to change their method of heating their homes completely, which I do not think is on the cards, this is simply a punitive tax on people who really cannot afford it.

I know we have obligations in this regard but what I am asking for is that we delay it. We are finally starting to see this little bit of hope in the economy. People are getting back to work. It is not there fully and we are not realising it in people's pockets. There is a case to be made to delay the implementation of this tax to keep the bag of coal at its current price. It is not fair to have a €1.20 increase last year and another one this year so suddenly when we have not seen the impact of that bit of hope in the economy on people's pockets. I am asking that the Department consider the cost and delay it for another year.

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