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

We are using the proceeds of that carbon tax increase to pay for more retrofitting of social housing to increase the fuel allowance. We are also building more social housing. Approximately 11,000 houses will be added to the social housing stock next year; while 10,000 were added this year. Those houses, three quarters of which are new builds, are built to the highest standard and are warm homes. I have been in many of those homes and have seen how comfortable they are. They are a huge improvement on the very old social housing stock across the country that needs to be upgraded. That can only be done, however, year by year and bit by bit.

The fuel allowance goes up to €24 a week, not €5 a week. For those in receipt of the fuel allowance, it will compensate them, and then some, when it comes to the carbon tax. I appreciate that some people do not receive the fuel allowance but of the worst-off, the lowest income quartile in society, most do receive it. The cost of the carbon tax increase is approximately €40 per household but the fuel allowance increase is approximately €50, so it more than compensates those in receipt of fuel allowance. I appreciate it varies from household to household and people have different heating systems but that is the case, generally speaking.

The Deputy mentioned that the carbon tax applies to everyone. I wonder if she understands how carbon tax works. It is not possible to apply carbon tax to some people and not to others. The whole point of a behavioural tax like carbon tax, like the tax we have on cigarettes and alcohol, is that it does apply to everyone. The more carbon one produces, the more one pays. It applies to businesses as well. In fact, most of the carbon tax is paid for by businesses.

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