Dáil debates

Wednesday, 9 October 2019

Ceisteanna ó Cheannairí - Leaders' Questions

 

11:40 am

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

This is what the ESRI research says. If the Deputy does not want to believe me, he should listen to the facts, the experts and the scientists. The ESRI research indicates that an increase in carbon tax will cost the poorest households about €44 a year. The increase in the fuel allowance is €56 a year so in fact the poorest one fifth of households in Ireland are actually better off as a result of what we have done in respect of carbon tax. Deputy McDonald suggests somehow that carbon tax is only paid by households. That is not what the facts or the research show. The facts and the research show that more than half of carbon tax is paid by business and by those big polluters the Deputy mentioned. The polluter pays principle applies. It is applied across the board, those who pollute the most pay the most and that is why business is going to pick up most of the cost of the carbon tax.

In respect of rural areas, it is true that in general, people in rural areas are more affected by carbon taxes than those who are not. Again, that depends on the circumstances. Somebody living in a rural town like Kenmare in County Kerry who lives and works in that town and has a well insulated house will be no more affected by the carbon tax than somebody who lives in the city centre. People who have lifestyles that use a lot of carbon will be more affected, including people living in suburban Dublin who may have poorly insulated houses. The whole point of carbon tax is to incentivise behavioural change over time. That is why we did not go for a big increase as some recommended. We decided to go for steady, smaller increases. I would say to the Deputy that if she does not believe me, that is fine but she should listen to the 27 Nobel prizewinners who have spoken on this. She should listen to our own Climate Action Advisory Council, Friends of the Earth and all of the people who really care about our climate and improving our environment. They all say the same thing. They say that carbon tax on its own will not stop climate change but we will not stop climate change without it. It has to be part of the picture and it is part of the picture. This is being done in addition to a €22 billion investment in renewable energy, insulating our homes, and public transport. All of those things are being done.

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