Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I move amendment No. 4:

In page 8, lines 9 to 13, to delete all words from and including “month.”,” in line 9 down to and including line 13 and substitute the following: “month.”.”.

For technical reasons, on the Opposition benches I cannot table an amendment that incurs a cost on the Exchequer, even though it would bring in additional income. What I am doing is deleting this particular subsection in the hope that the Minister will see the light and come back, following his discussion in Seanad Éireann tomorrow, with an amendment that can be discussed along with the other amendments here next week.

The NORA levy is a levy on the oil industry. It is paid to the distributors of fossil fuels in this country. What I want to see is that levy increased from 2 cent a litre to 3 cent a litre with a knock-on reduction in carbon tax.

From the consumer's point of view, no additional tax would be paid by the people using this fuel. However, there would be a 50% increase on the tax being paid by the oil industry, meaning that an additional €700 million over the next decade would be used to reduce demand for fossil fuels in this country.

I know the gurus in Merrion Street have nobbled away at this particular Bill. In its initial concept three years ago, it was to be a €1.2 billion fund and that was to be reflected in the calculation of carbon tax. The carbon tax has been increased but we are not doing anything with this levy. At a time when the Green Party is in government, it is bizarre that this legislation, which is probably the only Bill we will see that specifically taxes the fossil fuel industry in this country, is not actually going to increase the charge on that industry. I want to see the levy increased from 2 cent a litre to 3 cent a litre, in line with the original proposal I put to the officials. If the Minister goes through the file, he will see that. I want to see a consequential reduction in the carbon tax that reflects this change and ensures the fossil fuel industry in this country starts to foot the bill for bringing about the types of alternatives we are talking about. I am sure the Minister will respond with some reason that should not happen, but he is the very person who told me earlier that this fund is heavily oversubscribed. It is a €500 million fund but it can be a €1.2 billion fund. The Minister will say that is outside the scope of NORA, and indeed it is because he has already rejected amendments Nos. 2 and 3. He will have an opportunity in the Seanad to table his own amendments to reflect what I have already proposed in amendments Nos. 2 and 3 and to provide for an increase of 1 cent a litre on the fuel industry.

Let us increase the taxes on the industry by 50%. I do not see why they should be getting a free pass. We are asking the public to foot the bill for fossil fuels through carbon tax but we are letting industry away scot-free. Rural communities in particular are the ones paying the larger proportion of carbon tax per capitabecause sadly they are the ones who must travel long distances to work. The Minister has already excluded an opportunity for the farming community to leverage this particular fund through sequestration. The very least he can do is ensure that industry comes forward with practical and realistic alternatives that provide for a sustainable economy and sustainable solutions that suit an Irish situation. We tend to forget in the House that 37% of the Irish population live on 96% of the landmass. We are not like densely populated European countries where everyone lives in cities and large towns. We have dispersed rural communities. We need to come forward with innovative ideas that deal with the challenges in transport, heating and agriculture. I do not think a €500 million fund over ten years is sufficient to do that. It is not sufficient either for dealing with the challenges within Bord na Móna. There is merit in increasing the fund by putting the tax on the fuel industry, by putting our hand into their pockets and by getting them to fund the alternatives. I hope the Minister will consider my proposal.

See this speech in context