Oireachtas Joint and Select Committees

Wednesday, 1 March 2023

Committee on Budgetary Oversight

Report of the Commission on Taxation and Welfare: Discussion (Resumed)

Ms Marie Donnelly:

I will try to address some of the points the Deputy raised. He is right, in that we are in a transition as well as a difficult position, and some of the choices and actions we are going to have to take will be difficult. However, we must start by understanding where we are. We are in a climate crisis. No one can deny that. We can see it in Ireland, Europe and across the world. That is a reality. It is no longer a scientific theoretical concept. It is real and it is here.

We know we need to do something. It is important that everyone does something. It is not enough for one country or even one region to do it. Everyone has to do it because, at the end of the day, climate change does not recognise geographic or national borders. This is why we have the Paris Agreement and our objectives under that. It is why we have 190 countries that are committed to achieving the goals of the Paris Agreement. Ireland is a signatory to that, which is why we introduced legislation in 2021, set our targets and are taking measures. We are playing our part. We are a grown-up nation that is a part of the world and we are doing our bit. It is not easy.

It is important that we divide our emissions into two broad categories, the first of which is CO2 from fossil fuels like oil and gas. We have to buy those fuels from abroad, but we have natural resources that we could use instead. It makes sense to use our own resources in substitute for all of those imports, which represent 67% of our emissions. While there are difficult choices involved and it is not a straightforward issue, people will understand that it makes sense to use our resources instead of importing gas and oil, along with their emissions, from abroad.

The Deputy is right about Ireland being a major exporter of dairy and beef products. Our profile of emissions shows that 34% of our emissions come from agriculture. The only country in the world that has a similar profile is New Zealand. Even the figure in the Netherlands is not as high. We are distinct in that respect. The question we are asking of the agricultural sector is to take a phased and balanced approach towards sustainable agriculture. There is no suggestion that we reduce our food supply. It would not be realistic, and it would not be coherent with the Paris Agreement, Article 3 of which refers to ensuring food supply globally. That said, we need sustainable agricultural production, and we need to support farmers in doing that. We must ensure that, as part of the process, the income that farmers can gain from their activities is maintained. This may mean diversification and some changes. For farmers in Ireland, though, that is not new. They have dealt with different practices and processes down the years. They are the most adaptable people in this country and are the most efficient at taking changes on board. They have a legitimate need to be supported in this transition, as it is real and affects their daily incomes.

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