Olivia Mitchell (Dublin South, Fine Gael)

I welcome the opportunity to speak on this Bill. Most people, not least the Minister, would agree that in terms of reducing CO2 emissions and meeting our Kyoto commitments, this is not a time for timid measures. Rather, we must take a brave and far-reaching approach. That is why it is such a surprise that the provisions announced at the time of the budget and introduced in this Bill amount merely to a blanket increase in motor tax, just like most other years.

If the Minister were serious about reducing CO2 emissions, he would not have introduced a flat tax that is scarcely related to engine size and not at all related to emissions or usage. As my colleagues observed, it applies to all existing cars purchased before 1 July. No matter how small or efficient these cars, the increase in tax must be paid over the lifetime of the car. This makes no sense. As my colleague, Deputy Noonan, said, it is not fair to penalise somebody who has made a sound environmental decision by choosing a car with low emissions. Such persons will be penalised until they sell that car. On the other hand, these provisions will reward those who postpone the decision to make an environmentally friendly choice.

Why was July chosen? Most people purchase cars in January and few do so in July. It occurred to me that this may be some type of sop to the motor industry to give them a second January in the year, but I am sure there is nothing so Machiavellian at play. The reality, however, is that few people buy a car in the second half of the year. Any impact, therefore, will be delayed for another year. This is certainly not a brave and far-reaching measure.

One cannot escape the conclusion that these provisions, dressed up to look as though they arise from environmental concern, are purely about raising revenue. It is estimated the new system will bring in some €83 million for the Exchequer. All this will do, however, is raise the cost of motoring, which is already expensive. It will not be a deterrent but it will raise the cost. Green Party Ministers, especially the Minister for the Environment, Heritage and Local Government, are beginning to look like patsies for Fianna Fáil, the Ministers who raise taxes and take all the associated criticism. They are patted on the back by Fianna Fáil for being environmentally aware but are essentially merely raising taxes on that party's behalf.

I am not even sure it is legal to charge people different tax rates for the same car and to do so indefinitely. If it is legal, it is extremely unfair. Those unfortunate persons who have already purchased efficient cars or do so before 1 July not only will derive no benefit but they will be taxed at a higher rate and will lose out in terms of the resale value of their cars. It is a double whammy.

There is a thorough lack of planning, coherence, logic and consistency in Government efforts to reduce CO2 emissions and greenhouse gases and to deal with environmental issues generally. Perhaps this is because a degree of panic is setting in now that it seems increasingly unlikely we will meet the 3% target set by the Government and for which the EU is constantly pushing. There is even less chance of reaching that target if we continue to treat the public like recalcitrant children. There is significant enthusiasm among the public to change behaviours and take responsibility for protecting the environment. However, people require assistance, encouragement and information, together with fiscal and financial incentives in any way the Government can provide. It seems bizarre that it is a Green Party Minister who is concentrating on the stick rather than the carrot.

Since this Government was formed, the penal approach has been taken in the case of several environmental measures. There is the promised ban on traditional light bulbs, an increase in landfill tax, this proposal in regard to motor tax, threats of carbon taxes and the purchase of carbon taxes in our name. Where was the Minister when the Government made the decision not to introduce competition in the bus service? All these measures will merely antagonise the public and will certainly not encourage people to waste less, drive less and save energy in any way. There seems to be no realistic, workable plan to bring people on board to work together towards reducing our carbon credit requirements or at least make sizeable progress in that direction. It is a common project upon which we must all embark and it is not something the Government can impose only through the stick and without any carrot.

The two main sources of our emissions are transport, which is an area of significant growth, and domestic heating. To suppose that new building standards for future builds will make a significant difference is nonsense. It is undoubtedly important that we have new standards for new builds, but what about the existing housing stock which is the bulk of capital? In the past ten years, some 500,000 new homes have been built. The housing capital formation for this generation has happened. It is there and it is abysmally insulated, as the Minister knows. The houses in question were built using hollow blocks, which is just about the worst way to build a house in terms of insulation. That was done over many years with the blessing of the Government. What does the Government propose to do to reduce the substantial heating bills faced by Irish people? What will it do to make any kind of significant inroads into our carbon emissions?

Given that Ireland's climate is quite mild, despite what we have experienced over recent days, a properly constructed and insulated house can almost be heated with a candle, as the Minister is probably aware. However, we are pumping out gas and oil to try to heat the atmosphere. We are literally trying to heat the sky as we bring up the temperature of our houses. Such behaviour is costing every home a great deal of money, destroying the environment, increasing our dependence on fuel imports, affecting this country's balance of payments, creating an unpleasant living environment and causing a catastrophic increase in carbon emissions. Energy and carbon credits which might be used fruitfully by Irish industry are being pumped away as part of a futile attempt to heat our homes.

The single most useful thing the Government could do to reduce carbon emissions and meet our Kyoto commitments would be to launch a major drive to transform the insulation value of existing Irish homes. The big stick will not work. People need information and a fiscal incentive. If the Government does not favour the introduction of a grant scheme — I do not see why that should be the case — it should consider the provision of a system of tax relief or any other system that would act as a carrot in incentivising people to follow a good example. The existing housing stock of the entire nation must be upgraded. It is a waste of time to talk about new builds because there will be very little new building over the next few years. If the attic insulation of every home were to be increased to 18 in, it would have an substantial impact on heating bills throughout the country. Why is such a scheme not being introduced? Not only would it be a "no-brainer" for any Government that is interested in taking a big and brave step, but it would also be infinitely more attractive than threatening people with carbon taxes if they do not stop heating their homes.

The imposition of additional taxes on the owners of cars, particularly taxes which are not related to engine size, emissions or frequency of car use, is a blunt and ineffective instrument when trying to change behaviour. People in rural Ireland need cars to travel to work and to socialise. In the absence of a suitable rail freight system — the existing system suffers from the attitude of our train company and the indifference of the Government — hauliers need to use the roads to transport goods. Some people have to use their cars but, given that most of our population now lives in our cities, most people could use public transport if a decent system were available to them. We will have to wait at least 20 years for the metro, etc., to be completed and an adequate public transport network to be in place. It will be too late by then. We need buses now. Where are the buses? No progress has been made in that regard, despite ten years of promises. The percentage of commuters travelling by bus is decreasing every year. A decision has been taken to stick with the old system. As the Taoiseach said yesterday, "there is no change in the system that has been operating for the past ten years".

We are penalising people by introducing landfill taxes without offering alternatives. I do not know whether the Minister is aware that his plan to prevent local authorities, or anybody else, from securing a guaranteed stream of waste is leading to absolute chaos. If he proceeds with that plan, there will be problems. The local authority in my local area is constructing a ground waste facility, but it does not know whether it will have any waste to put in it. We should be making planned and careful decisions about the environment, but instead there is absolute chaos. Consumers make choices every day — they decide what to buy, how to travel and how to heat their homes, for example. The Minister should encourage people to make sound environmental choices and to change their purchasing behaviour.

Last week, when the House debated services for people with autism, Deputies spoke about the applied behaviour analysis method as if they knew what it is all about. Anyone who knows anything about behavioural analysis or even about human nature — one would not need to have any background in psychology — will appreciate that the carrot is more effective than the stick. If one penalises people with taxes, one will change their behaviour temporarily. If one really wants to engender enthusiastic and long-term change, one must use the carrot. If one wants people to buy into the concept of resource conservation, one must give them personal and compelling incentives to change their behaviour. The proposed tax, which is marginally related to engine size and certainly not related to usage or emissions, is simply in the interests of nobody except the Minister for Finance.

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