Oireachtas Joint and Select Committees
Wednesday, 22 September 2021
Committee on Budgetary Oversight
Pre-Budget 2022 Scrutiny: Irish Fiscal Advisory Council
Ms Dawn Holland:
I thank the Deputy for the question. She raises some important issues. In designing a climate policy, there are many different channels that can be used as policy instruments. I cannot say I am an expert on the individual types of policies that the Deputy is proposing or the trade-offs that would arise. I have looked at the different ways that climate policies can be designed. For example, if there is a tax on carbon, how you spend that revenue has different impacts. Where is that going to be put in the spending programme? Is it being used as a new revenue source or to pay off debt? Is it being channelled into energy efficiency research and energy efficient technology which would help to speed up the transition process? Will it be channelled into social protection to offset the costs that might be borne by some of the more vulnerable households in society? There are many policy trade-offs. It is not necessarily the council's role to identify the appropriate policy mix. We look forward to hearing the details of those proposals in the climate action plan.