Dáil debates

Wednesday, 9 December 2009

Financial Resolution No. 2: Excise (Mineral Oil)

 

8:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)

The much trumpeted €121million allocation for forestry and biofuels was announced by the Minister for Finance as if new money was being provided. This represents a net increase of €2 million over the allocation for 2009. The ink is not dry on the revised programme for Government, which has a target of planting 10,000 hectares of forestry annually. The Department did not even plant 5,000 hectares this year with an allocation of €119 million. How does the Government propose to meet its overall policy objectives with regard to carbon reduction and so on if the allocation will go nowhere near meeting the commitment signed up to recently in the revised programme for Government? The sum of €121 million is also intended to tackle the issue of biofuel production. Ireland's carbon footprint will increase because companies will be obliged to import biofuels to meet the blending requirement. The Government's proposal is illogical.

The other issue surrounding the carbon tax is the intention to change people's behaviour and, as a consequence, lighten their carbon footprint. I refer to the agricultural community. The Minister for Communications, Energy and Natural Resources mentioned the ESRI, which estimates the yield from a carbon tax on the agricultural sector would be approximately €17 million annually. What alternative has a farmer? He cannot hitch his plough, harrow, fertiliser spreader or slurry spreader to the back of the DART. He has no alternative.

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