Oireachtas Joint and Select Committees

Wednesday, 16 November 2022

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

Business of Select Committee

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

If Deputy Doherty did not acknowledge the lack of skilled people available to do the work, then of course I apologise to the Deputy. I thought he did. If he did not, then I take that point back. The Deputy is aware, however, of the huge challenge we have in getting people to do the work and all of the training efforts that are under way, which I referred to last night, to build up the sector so we can do more retrofitting activity quickly. The money we are using to fund the retrofitting programme is from the carbon taxes Sinn Féin is against. The carbon taxing proposed by Sinn Féin, such as eliminating the carbon tax on home heating oil, is the very tax we are using to co-fund the expansion of the retrofitting programme and to put in place more funding for the retrofitting we know is needed to change homes and to give a better quality of life and better health to the people living in them. On the one hand, Sinn Féin wants the Government to fund more retrofitting, but on the other hand, Sinn Féin is opposed to the tax that pays for it. I put it to Deputy Doherty that these two views are completely inconsistent and contradictory. As I understand it, Sinn Féin has a proposed amendment here today to eliminate the carbon tax on home heating oil. Sinn Féin has been against all of the carbon tax changes that I brought forward in recent years, and yet Sinn Féin wants more of the activity that is co-funded by the carbon tax. I know that the Deputy will propose, as the Deputy said a moment ago, more taxes on REITs such as IRES, and that Sinn Féin would bring forward tax proposals to pay for more spending. The amount of additional spending the Sinn Féin Party commits to, day after day and which the Deputy also does, will not be funded by the level of taxes the party would bring forward without doing more damage to our economy. Specifically, Sinn Féin wants more retrofitting. Carbon taxes are helping to pay for the expansion of our retrofitting programme, but Sinn Féin is against carbon tax. If Sinn Féin wants to see more and more investment in a lower carbon future for our economy, where will Sinn Féin get the money to do that, given it is against the role of carbon taxing?

In answer to the Deputy's question about fossil fuels and the impact that higher pricing could have on the carbon tax trajectory, the last time we analysed this was in 2021. I am sure when we get to do the tax strategy group papers for next year, we will no doubt consider what impact higher pricing will have on the carbon pricing plans we do have. I know that the rising cost of fuel is having a very damaging and tough effect on many households throughout the country. Carbon taxing has played a role in the increase in the price of fuel in recent years but it is contributing a small share of the total price increases that are happening. These price increases are happening due to forces beyond the control of this Government, but the carbon taxes are playing a role in creating the investment to create a better economy and a better society for our country in the years ahead.

The amendment we have here deals primarily with the changes in relation to a mineral oil tax. I go back to what I said in my original response to Deputy Doherty, that there is €280 million between now and the end of February, which will be €4 billion across all once-off measures. I know this is not enough for many but it is a very large amount of money we are using on behalf of the country to make a difference to the cost-of-living pressures we know many are now experiencing.

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