Oireachtas Joint and Select Committees

Tuesday, 18 June 2019

Committee on Budgetary Oversight

Budgetary and Fiscal Implications of Climate Change: Discussion

Dr. Kelly de Bruin:

I will comment on that, if I may. It is something that we have been considering in terms of how to compensate the haulage sector without getting rid of the incentive to decarbonise. The problem with the diesel rebate scheme is that participants get money back when they spend it on diesel. It, therefore, has the opposite effect of the carbon tax. We investigated the possibility of not increasing the rebate and giving a production tax reduction to the haulage sector instead to compensate for the increase in carbon tax. If we do that, we can still get emission reductions in the sector while also compensating it for its carbon tax losses. As has been pointed out, this is a policy question. It is important, when considering this problem, to bear in mind that we want to reduce emissions with this increased carbon tax and compensating the haulage sector should not compromise that, if possible.

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