Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The aim of carbon taxation is to implement the programme for Government commitment to another move and change in carbon taxation in this budget. Our objective is to recycle all the additional revenue for very clear purposes.

The first of these purposes is to seek to protect anybody who would be at risk of fuel poverty and adversely affected by moves in carbon taxation. The second purpose will be to fund the development of needed infrastructure and the third will be to make progress on the retrofitting of homes. This is not a new approach initiated by this Government; it is what we did last year. We will continue with that approach in the coming budget. There is a lot of value in being able to explain how this money is used and in using it to influence decisions that families and businesses might make in the future with regard to the use of carbon and fuel. I am very much aware of the need to get the balance right between such a move and protecting the living standards of those who are vulnerable. That is why a significant share of the revenue generated by that move is put into changing the relevant allowances in our social welfare code.