Jennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

As someone who has worked in the environmental sector for 20 years, I find tonight's debate quite concerning. Due to the Government's approach to many of these things, we are seeing a divide between rural and urban communities really come to the fore. The reality is that if we do not address climate change and deal with all the issues that are coming down the road, those in rural areas will be most impacted by the effects of climate change. We will see the cost of food increase. Flooding will increase and farmers will have grave difficulties dealing with the change in temperatures and environmental conditions. Where I do agree with the Deputies is that I believe this is because the Government's policy is leaving a lot of people behind. We have heard about how rural communities in particular are finding it very difficult with the cost of energy and fuel at the moment. It is within the remit of the Government to use taxation policy to assist those households and do something that is proactive.

In the majority of instances when we discuss VAT issues with the Minister, he says it is not within the Government's competency and that it is within the control of the EU. This year, the EU brought in a directive, No. 2022/542, which will enable the Government to reduce the VAT on certain products to zero because they are in line with the EU Green Deal. I am asking the Minister to support rural communities and urban communities and the million households across this country whose homes are eligible and suitable for solar panels. He can support them by bringing in a zero VAT rate for solar installation and solar panels. This is absolutely within the Government's remit and it is something it could do very quickly. It would represent a greening of the VAT and would go a long way towards assisting those households that are suffering from the global energy shocks we are seeing. It would also help our country meet its emissions targets and help with the vulnerabilities of our grid. It is a win-win-win situation. Currently, when people buy solar panels, the Government gives them quite a meagre grant of a maximum of €2,400 but that money is taken back off them in VAT. We are asking that the Government not do that any longer and assist families to install solar panels, make their homes resilient against these energy shocks and help them reduce their energy bills by 40%. I have an amendment on this issue but we are not going to get to it. I ask that the Minister look into this. This is now allowable under EU rules. I ask that the Government be proactive and help families all across the country deal with their energy bills for next winter.

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