Martin Mansergh (Tipperary South, Fianna Fail)

The first point to make about the rate of mineral oil taxes is that the expected yield from the increases in 2011, inclusive of VAT, is approximately €106 million. Were we not to proceed with these changes, we would need to find €106 million elsewhere. While it is correct that people in rural areas are more dependent on car and motorised transport generally, in principle the carbon tax affects everyone who drives regardless of the parts of the country in which they live.

I was asked for the details concerning the current percentage component of carbon tax.

Anyone who crosses the Border will be aware that petrol and diesel prices are still significantly higher in the North than in the South with an approximate difference of 10% to 15% in price. The carbon tax element on a litre of petrol costing €1.19 is 4.2 cent, inclusive of VAT. In the case of diesel, it is 4.9 cent on a litre of diesel costing €1.10. Despite what Deputy Ring assumes, I buy diesel and if I knew anywhere it was being sold for €1.10 a litre, I would be around there pretty smartly. In my experience of recent pricing, it is more likely to cost €1.36 or €1.38. I think the tabular information with which I have been supplied is somewhat out of date.

The total excise on petrol is 57.6 cent per litre, of which the carbon tax is 3 cent. The point being made in the information is that carbon tax is a small additional element. I suspect that the next international crisis could be an oil-related one. We have to try to be more efficient and more economical in the use of petrol. A small level of carbon tax is a financial incentive to be economical. Irrespective of this one element, it is also a case that the State needs the revenue.

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