Oireachtas Joint and Select Committees

Tuesday, 18 June 2019

Committee on Budgetary Oversight

Budgetary and Fiscal Implications of Climate Change: Discussion

Mr. Frank Maughan:

That point was addressed in response to previous questions. Much of the investment that has to take place in the next decade will be private sector investment, including in respect of retrofitting, vehicle purchasing etc. We are talking about hundreds of thousands of consumer decisions which the plan, through its various actions, will try to influence. The broad balance between Exchequer investment and private investment is, as I said earlier, a question for policy design. To come back to the exchange of questions around the electric vehicle incentives, we have a broad set of incentives which are appropriately structured for where things are in terms of the price of the vehicles. As that price comes down over time, the way in which the Exchequer intervenes may also change, as my colleague mentioned. That balance between the Exchequer component and the private component of the intervention must be carefully managed in the coming decade and further into the future to ensure we achieve the targets contained in the action plan. It is not a matter of saying, right now, that for the next 11 years, the balance between private and State investment will be X% and will not change. The balance will necessarily adjust over time.

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