Oireachtas Joint and Select Committees

Thursday, 7 March 2013

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2013: Committee Stage (Resumed)

11:30 am

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael) | Oireachtas source

This is an interesting discussion and I do not disagree with much of what Deputy Boyd Barrett has said, such as his proposal on applying the costs of energy conservation measures to the electricity bill. The Minister for Communications, Energy and Natural Resources has had discussions along these lines with the ESB. I do not know the state of the discussions at present, but it is an idea which is being pursued at the highest level in terms of ministerial responsibility. It would also deal with the point Deputy Doherty made, about poor households not having the upfront money to enable them to draw down the grant subsequently.

On the general policy position, my view is that if it is necessary to take action on fuels which generate quite a lot of CO2 then the application should be universal after which we would have alternative schemes to relieve the burden on the minority of people affected. This is where the Department of Social Protection's fuel allowance comes in.

I do not know whether the guys in the pick-up trucks still go around with bags of coals in large housing estates in Dublin, but it is quite common in my city. Sometimes they also have bags of timber. The supply seems to be a bit uncertain and it is not always available. With regard to elderly people, there is also a weight issue. A bucket of coal, or a half a bucket of coal, is much handier to bring into a house if one is elderly than the supply of blocks one needs for the night. One would need a great big basket of blocks beside the fire, and lifting and carrying this as well as storage are issues. It is not an exact solution.

The imposition of the tax is at the first point of supply. The carbon tax will have been applied to the coal being supplied by the guys in the pick-up trucks, so they are not involved in some type of black market activity and evading the tax. Their trade will not be affected because it is those who supply them with the fuels who will have to bear the carbon tax.

With regard to Northern lorries delivering coal as far south as Cork, this was one of the concerns which delayed bringing forward this measure. The introduction of the solid fuel carbon tax was delayed to allow for a mechanism to be put in place to address the risk of coal products with lower environmental standards being sourced from outside the State. Regulations to enable local authorities regulate and control the type of coal supplied in the State were put in place by the Department of the Environment, Community and Local Government. It was on this basis the commencement date for the solid fuel carbon tax with effect from 1 May was announced in the budget in December. Measures have been taken to alleviate concerns about cross-Border trade with even less environmentally friendly solid fuels. I do not know whether the local authorities have moved following the Department's change or not, but individual local authorities may regulate for this in their functional area and should do so. This explains some of the considerations with regard to the timing I have introduced.

The Government must do more, and will do so, on energy-related policies to make homes more energy friendly. The same should apply to the great stock of public buildings run by the OPW. I would think the cost of heating and lighting office blocks throughout the public service could be greatly reduced if work was carried out to make them more energy friendly.

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