Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I move amendment No. 3:

In page 14, between lines 14 and 15, to insert the following:

"Report on current and projected future increases in carbon tax 20. The Minister shall undertake an impact assessment on the current and projected future increases in carbon tax on low income families and shall bring forward a report on same within six months of this Act being signed into law.".

This is a request for a report on the impact of carbon tax increases on lower-income families. It appears that increases in carbon tax will be a feature of budgets from now because of climate change policies of all parties, including those in government. There is an argument as to whether increasing carbon tax has any impact in reducing carbon emissions but that is beside the point. The Government has accepted the proposition, which seems widely accepted, that it has an effect. That is the stated purpose, at least, of increasing carbon tax.

Increasing the carbon tax will have a disproportionate impact on lower-income families. If an increase is X, a higher proportion of income will be sacrificed as the income gets smaller. The Government's strategy to deal with this was to increase fuel allowance by €2 per week. The fuel allowance lasts for 28 weeks, giving an increase of €56. The Minister told me recently during Question Time in the Dáil that some studies have been done and it is reckoned that this amount is needed to compensate people. I would like something more specific than that. Many categories of social welfare recipients do not receive the fuel allowance at all and, in effect, they are not being compensated for the increase in carbon tax, which is grossly unjust. If it is the Government's intention and the intention of future Governments to increase the carbon tax year on year, I would like a detailed assessment of how this will affect lower income groups so we can make the necessary adjustments in budgetary policy.