Dáil debates
Wednesday, 22 November 2017
Finance Bill 2017: Report Stage (Resumed)
4:45 pm
Mick Wallace (Wexford, Independent) | Oireachtas source
The Ceann Comhairle is spoiling the party. He is way too serious for this job.
Although the Minister introduced a one-year benefit-in-kind provision in respect of electric cars, which is estimated to cost the Exchequer approximately €500,000, we should be doing more. This is not just a point for the Department of Finance, but any Department. This morning, I was arguing with the Minister for Transport, Tourism and Sport in the Chamber. Ireland will have to change its approach. We claim to care, but our actions do not back that up.
Last week, we saw the publication at UN climate talks in Bonn of the 2018 climate change performance index, which contained the not-so-surprising claim that Ireland was now the worst performer on climate change action in Europe. A few weeks beforehand, a study was published in which revised calculations of methane produced per head of cattle showed that global livestock emissions in 2011 were 11% higher than estimates that were based on data from the UN Intergovernmental Panel on Climate Change, IPCC, meaning that the figures being used by the Department of Agriculture, Food and the Marine need to be revised and Ireland's standing on climate change action may be even worse than that damning report suggests.
We are doing little to tackle the threat of climate change, our agricultural and transport sectors being the major culprits. We are increasing the beef and dairy herd even though we know that they are the most climate destructive and carbon and water intensive forms of food production on the planet. To stop being the worst performer on climate change in Europe, we need to face a few hard facts. As Mr. Ian Lumley of An Taisce pointed out at the Bonn climate change conference last week, global animal agriculture needs an exit strategy. We have got to change our approach. He stated that, if the target in the Paris Agreement is to be met, that exit strategy should be as rapid as necessary for coal, oil and gas. In that spirit, we need to get oil, coal and gas out of our transport sector as fast as possible.
We need to consider increasing benefit-in-kind for those who purchase electric cars through work, and I have recommended a period of five years. The Minister might say that is off the Richter scale, but it would not be a mad expense. I do not have figures, but it is something worth considering. As the Minister knows, I am seeking a review. I am not saying this has to happen now, otherwise my amendment would have been ruled out of order because I would have transgressed the money message rule.
Assessing whether this is value-for-money cannot be a bad idea. It is not a mad notion for me to come up with. If we are serious about electric cars, we also have to get serious about how we produce electricity. Unfortunately, we are not the cleanest producers of electricity around. In fact, if one was to compare us with western European countries I doubt any would be in as poor a place as we are. The burning of coal in Moneypoint should stop. The State should borrow in order to provide massive investment in solar, wind and water renewable power. Much like the housing crisis, the private sector will not fill that gap. The State has a significant responsibility to come up to the plate and it can do so.
We know we do not have an endless supply of money, but the State has to play a stronger role in tackling climate change. Everyone has seen their electricity prices rise of late, as the PSO levy has increased. We have been told this is to help to pay for new renewable projects, but in reality we are subsidising the highly inefficient and destructive burning of peat at power stations while we convert them to biomass, another climate disaster in the making. Future generations will thank us if we play a positive role now and deal with these issues.
The Minister has probably heard what people in the industry have said about going from one to five years. Alan Nolan, the director general of The Society of the Irish Motor Industry, welcomed the move to promote electric cars in the first place, but said it is so limited in scope that it will have very little impact given that most companies buy vehicles over three-year periods. He went on to say that if it really wants to make an impact, any such scheme needs to relate to the buying cycle. I can assure the Minister that when I was buying commercial vehicles we worked on a five year cycle because it made more financial sense to do so.
I ask the Minister to consider the measure urgently. I do not think it is a mad idea. God knows there have been plenty of mad ideas in this place. It is to be hoped that the Minister will see fit to at least agree to a review after about six months or whatever.
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