Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I move amendment No. 4:

In page 14, after line 35, to insert the following: “Report on current and projected future increases in carbon tax

23. The Minister shall undertake an impact assessment on the current and projected future increases in carbon tax on low income families and shall bring forward a report on same within six months of this Act being signed into law.”.

The amendment arises out of proceedings on Committee Stage. There is a legitimate debate to be had on whether increasing carbon tax will achieve the desired objective. It was decided that it would and the relevant legislation has been put in place. The increase will impact on low income families. It will not solely affect those on social welfare; tens of thousands of working people on low incomes are living on or below the poverty line. The attempt by the Government to compensate people by increasing the fuel allowance by €2 per week is rather pathetic. Tens of thousands of social welfare recipients, probably more than half of all recipients, are not entitled to fuel allowance and will receive no compensation. If the Government or a future Government commits to continuously increasing carbon tax, it will disproportionately impact the poorest in society because the smaller one's income, the greater the proportion of it one must use to cover the cost of an increase in tax on a basic item such as fuel. A detailed analysis of the impact of the carbon tax should be carried out to guide the Minister and her successors such that they know what countervailing measures the Department should put in place to mitigate any increase in the tax.

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