Oireachtas Joint and Select Committees

Tuesday, 17 November 2020

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2020: Committee Stage (Resumed)

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent) | Oireachtas source

The point I was making to the Minister before the suspension is that the carbon tax, as presently structured, is regressive from a geographical perspective. It discriminates against people residing in rural areas who do not have alternatives available to them. I made the point that a family living in this city with direct access to Dublin Bus pays a weekly carbon tax - half the households in Dublin are paying a weekly carbon tax of €9.11 when the Dublin Bus subsidy is taken into account - whereas rural commuters will be paying €39.50 per week when the full carbon taxes are introduced. That is four times the amount for a rural commuter compared to his or her typical urban counterpart.

I want to make a specific point in respect of home heating oil. The latter is also the subject of section 26. Based on current rates, typical rural households will pay €1 more per week in carbon tax in 2030 than their counterparts in Dublin for the cost of heating their homes. In practical terms, however, the difference will be far greater because over the next decade the Government is going to subsidise carbon removal from the gas network through the introduction of biomethane, whereas families living in rural areas will have to borrow substantially to move away from oil. Again, whether it is transport or heating, the people who do not have alternatives available to them are going to pay significantly more in carbon tax. That is the wrong approach to take. While I agree with the principle of carbon taxes, I disagree with the approach that is being taken.

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