Dan Boyle (Cork South Central, Green Party)

I noted with interest the history of the Progressive Democrats Party that was published in recent weeks. Apparently, the first mad idea of the Minister, Deputy McDowell, as a policy position of the then nascent party was to abolish all income tax and replace it with property taxes. I would like to hear the Minister debate such issues as they relate to the type of fiscal instruments we choose to use these days.

Instruments are available that can help us to achieve our environmental goals. We have proposed a carbon levy, which could reduce VAT and replace the high levels of employers' and employees' PRSI contributions. It would go towards addressing the current fuel poverty problems which continue to deteriorate due to the inactivity of successive Governments in this regard. The problems are exacerbated owing to our reliance on fossil fuels and the fact that the most disadvantaged people must purchase the most expensive fuels for their heating needs, which also cause the most environmental damage. Social welfare fuel allowances need to be doubled at least, so we require a fiscal instrument to allow us to do that.

As it happens, it may not even be necessary to introduce a carbon levy because there are alternatives. Some countries use individual carbon credits as a mechanism under the Kyoto Agreement and we could use such means to get over our current industrial commitments. The same methods could be used for individual citizens. It might not be easy to administer, but it should form part of the overall debate on determining the best fiscal means to achieve our current target levels under the Kyoto Protocol. Other target levels will follow and, as sure as night follows day, this ongoing process will take up most of the coming century if we are to be serious in tackling these environmental problems.

We must have the means in place to ensure fuel poverty as an issue disappears from society, the discrepancies between wealth and poverty throughout the world are tackled in a serious way and environmental problems are tackled effectively. This can only be done by restructuring our tax system. We need to get rid of many of our current taxes and replace them with taxes that work and which tax the finite resources and recognise people's needs of food, heat and shelter. The current taxation system does not do that.

I ask that the Minister, in what I hope will be a considered reply to what is meant to be a consensual approach by the Green Party to a long-term ongoing problem, will keep in mind the need for a broader debate, put everything on the table and ensure this debate is taken seriously.

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