Oireachtas Joint and Select Committees

Tuesday, 21 September 2021

Joint Oireachtas Committee on Climate Action

Scrutiny of EU Legislative Proposals

Mr. Frank Maughan:

I thank Deputy Whitmore for the questions. I reiterate the point that Mr. Regan and I made already. This process is at an early stage and analysis is under way in the Department and in other Departments of all the Fit for 55 proposals. This work is ongoing. These are complex files on detailed proposals with impact assessments underpinning them. I think I saw an estimate recently which suggested that there are approximately 3,000 pages of proposals overall. It is a lot to get through.

Regarding engagement with the committee, the Department has no issues in that regard. It is a matter for the committee, I guess, to assess how engaged it wishes to be throughout this process. Turning to issues with subsidiarity, this was identified in the Department's scrutiny note for both proposals. The Deputy summarised it very well in respect of pinpointing the broad thrust of what will happen in this process. As a result of these proposals, revenues being raised domestically through our taxation system may in future accrue, at least in part, to the EU budget and then be funnelled back to the member states. Those revenues will also be distributed to the member states in a different way. That is where there are concerns on our side about the overall thrust of the proposal and whether it will achieve the outcomes we are seeking as effectively as through our own taxation and expenditure policies. I cannot offer a final judgment on that aspect today. We are not at the stage where we can offer a definitive conclusion on this process one way or the other. We are simply identifying the issues that this proposal raises for Ireland and other member states. We are not alone in having a national carbon tax in place.