Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

It is important to note that the vast majority of greenhouse gas emissions from the agricultural sector, that is, methane, are not subject to carbon taxation. The main agricultural exposure to carbon taxes comes from fuel imports, primarily through the use of marked gas oil, MGO, or, as we know it, green diesel. It is subject to the lower excise rate of 10.2 cent per litre. The increase in carbon tax will increase this to 11.8 cent per litre. The increase to MGO will apply from 1 May 2020. The excise rate on MGO compares very favourably with the excise rate applied to auto diesel, which is 49.5 cent per litre. There is a difference in price of almost 40 cent per litre between road diesel and MGO. When the carbon tax was introduced in 2012, provision for a double income tax relief for farmers to compensate for this increase was introduced. This relief continues to apply. In light of the very limited exposure of the agricultural sector to carbon tax increases and the availability of other income tax reliefs for farmers that are directly related to increases in the carbon tax rate, I do not see the benefit in conducting a report on the impact of a carbon tax on the agricultural sector.

I live in the countryside, down a country lane. I am very strongly supportive of rural planning. We had a conversation earlier about the fact that An Bord Pleanála has turned down applications for one-off developments in rural areas. The Irish rural housing stock is dispersed throughout the country, which I support. People should be able to look for planning permission to build houses in rural areas. However, we cannot expect the State to subsidise those living in rural areas. The State does not subsidise wastewater. People have to install their own septic tanks and provide their own water. Where there is a market failure, the State will step in in the form of initiatives such as the national broadband plan we have launched.

People cannot expect the State to do everything for rural Ireland. It is wrong of people to keep talking about Ireland being desolate and dying because it is not. Many areas are thriving and doing exceptionally well. Not everywhere is like that and that is why we are spending billions of euro on the national broadband plan, the national rural regeneration plan, and town and village renewal schemes. People would think none of this happening and the money is being spent in Dublin city and nowhere else. That is not the case and it is disingenuous of some Deputies to say everything is wrong in rural Ireland because it is not.

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