Brian Leddin (Limerick City, Green Party) | Oireachtas source

I want to address the taxation measures in the Bill. As the Minister outlined, the Government has agreed to a schedule of carbon tax increases up to 2030. There is certainty there for householders and businesses as to what will happen in the future. The Minister correctly stated that it would be absolutely wrong to resile from that signal at the first increase in fuel costs. The programme of carbon tax increases and how those increases will be redistributed is a progressive programme of taxation that will help Ireland to meet its climate goals. Between 2021 and 2022, the Government will increase social welfare payments by €200 million from carbon tax revenues.

What is the effect of redistributing €200 million over two years? Not only did we totally compensate households in the bottom four deciles, by income, for the increases in carbon tax but we also ensured households in the bottom three deciles are better off because of the increases in carbon tax. That is not a Government analysis; it is the analysis of the ESRI. The Government will achieve this income redistribution again next year, the year after and the year after that.

I absolutely reject the calls to reverse the increases in the carbon tax rates. I absolutely reject the calls for us not to raise money for targeted social welfare payments, retrofitting homes and environmental schemes for farmers. I am surprised this is even controversial, but apparently it is. Since it is, I repeat my point that we are raising money from carbon tax and spending it so lower-income groups in society will be better off.

I am baffled as to why anyone would oppose the progressive taxation measures being introduced by this Government. I am surprised those people opposing carbon tax are not urging us to increase our ambition. I call on those who oppose carbon tax increases to rethink their opposition. It is a question of increasing tax and spending the proceeds on making lower-income households better off. It is not complicated; it is the right thing to do.

The other aspect of the carbon tax is that it reduces emissions. The ESRI estimates that the programme of carbon tax increases will decrease emissions by 10% by the end of the decade. Despite what I said about income redistribution, I generally welcome opposition to climate action measures where alternatives are proposed. That is welcome and healthy. The Government does not, and should not, have a monopoly on the ideas on how we can reduce our emissions. In all the opposition to carbon tax increases, not once have I heard alternatives. What is the alternative? Should we seek to reduce artificial fertiliser use in the agriculture sector, reduce speed limits on motorways, increase road tolls or ban fossil fuel boilers? What is the alternative and how are we going to achieve the 10% reduction if not from carbon tax? Almost all parties voted for the climate Bill and its provision for carbon budgets that will halve emissions this decade. Opposition to measures is positive, but only if alternatives are proposed. Opposition for opposition’s sake in the face of a climate crisis is irresponsible and reckless. I support the increase in carbon tax and this Finance Bill.

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