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

The way this measure differs from other taxes is that we have made a commitment that we will use the revenue raised from this carbon tax to fund the activities needed to lower carbon use in our economy. Unlike every other tax I will debate with the Deputy on the Finance Bill, we will not use the revenue from carbon taxation to fund general expenditure. We are using it purely with the objective of putting in place the incentives, plans and changes needed to lower the use of carbon in Ireland.

I listened carefully to the point the Deputy made on the effect of this increase in carbon tax on the agricultural sector. I recognise the consequences the sector faces and I acknowledge this. The reliefs I outlined earlier offer a very high degree of support for our farmers in dealing with carbon pricing changes. This is legitimate and needed given the difficulty they have in changing their vehicles or getting new vehicles with low levels of diesel use. This is why these reliefs are in place. I repeat that the changes made in 2012 by the then Minister, Michael Noonan, offer a very high level of support to farmers in coping with the changes that will arise as a result of carbon pricing going up.

The Deputy understands the value of these changes as a former Minister in this area. He made the case for the change being incremental. This is what we are doing. We are making incremental changes year by year and we are committing to making these changes for the next number of years until we get to a level of carbon taxation that experts believe can make a difference to the amount of carbon used in Ireland. I will conclude by emphasising that the changes made in the budget of 2012 offer a very high level of protection to farmers in dealing with the income consequences of carbon taxes going up.