Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to the debate. I have listened carefully to the comments of many of the Deputies and I understand what they are saying. While I might not agree with some of what has been said I understand the full sentiment behind it. Members will be aware of the important actions this Government has taken in the space of climate action and meeting emissions reduction targets. The Climate Action and Low Carbon Development Act enshrined carbon budgets and our targets for emissions reductions into law. The Act identifies the specific mechanisms, plans and strategies that will be used by Government to achieve the national climate objective. These objectives include a series of national carbon budgets. Under the system of carbon budgeting established in the Act, the carbon budget represents the total amount of greenhouse gases that may be emitted in the State during a five-year period measured in tons of carbon dioxin equivalent. The first two carbon budgets in the programme provide for a 51% reduction in greenhouse gas emissions by the State by 2030 relative to 2018, as set out in the Act.

Carbon tax offers an effective, cost-effective lever to reduce carbon emissions at the scale and speed necessary to effect meaningful change. It is therefore very necessary to us achieving these emissions reductions and doing our part to prevent climate disaster by 2050. This explains the Government's being opposed to any motion to scrap the carbon tax. Deputies calling this morning for the Government to review carbon pricing are reminded we have done it in a progressive way. The various analyses show those in most poverty benefit most from all the measures that have been introduced. The excise reductions, VAT and PSO cuts, the €200 utility bill credit and enhancements to the fuel allowance will mitigate the price increase across energy products and assist those who need it most.

In summary, it is necessary we respond to the current energy price dynamics and the Government has outlined what it has been doing to date. The Government remains committed to its current policy of carbon taxation. The carbon tax is critical to reducing our dependence on fossil fuels and ensuring a just transition to a decarbonised society. We therefore cannot support the proposal to scrap carbon tax. It would also jeopardise the Government's legally-binding commitments to reduce emissions by 2030 and 2050. The carbon tax is therefore linked with complementary expenditure measures that are critical to a just transition to a decarbonised society. A removal of carbon tax would not only undermine emissions reduction targets but also the welfare supports and initiatives that support the most vulnerable people.

For the benefit of everyone present, I state the carbon tax raised €652 million last year. If Members want to scrap that they must be honest and tell the people that €652 million cannot be spent on the areas on which it is being spent currently. The number of households that benefit from the fuel allowance is 390,000. Those people need it most. Everybody knows that due to the extended period we provided for in the budget, the increases we gave and the extra one-off payments in that sector, people in receipt of the allowance get an actual cash benefit over an extended period of time of over €1,000 per person. The benefit to those 390,000 people who get that costs €390 million. If Members want to abolish carbon tax, they should tell the people they are going to abolish the fund that raises the €390 million that pays for the fuel allowance. They should tell the people who are involved in agricultural environment schemes the money for them is gone because we have abolished the carbon tax. They should tell the people who want to retrofit their houses, even the smallest job of insulating the walls and ceiling, that they need not do it anymore if they expect money from the Government because some Members want to abolish the carbon tax. Society works by people paying tax and the Government spending it. The Government cannot spend it on those schemes if it does not raise it. We would all love to be in a situation where we did not have to pay carbon tax but most honest people would prefer to pay some tax to ensure the 390,000 people who are most vulnerable are getting €1,000 at minimum each, which every one of them needs and deserves to heat their homes. We should be going further with our retrofitting schemes and we need funding to do that. If Members are against all these schemes they should just say so and people will judge who is being fair and reasonable. The issue with being in government-----

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