Eamon Gilmore (Dún Laoghaire, Labour)
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I move:

(1) THAT for the purposes of the tax charged by virtue of section 95 of the Finance Act 1999 (No. 2 of 1999), that Act be amended, with effect as on and from 7 December 2011—

(a) in section 96(1B) (inserted by section 64(1)(f) of the Finance Act 2010 (No. 5 of 2010)), by substituting "A is the amount to be charged per tonne of CO2 emitted, being €20 in the case of petrol, aviation gasoline and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €15 in the case of each other description of mineral oil in Schedule 2A" for "A is the amount, €15, to be charged per tonne of CO2 emitted",

(b) by substituting the following for Schedule 2 to that Act (as amended by section 42 of the Finance Act 2011 (No. 6 of 2011)):

"SCHEDULE 2

RATES OF MINERAL OIL TAX

(With effect as on and from 7 December 2011)

(With effect as on and from 7 December 2011)

",

and

(c) by substituting the following for Schedule 2A to that Act (as amended by section 64(1)(e) of the Finance Act 2010):

"SCHEDULE 2A

CARBON CHARGE

(With effect as on and from 7 December 2011)

(With effect as on and from 7 December 2011)

",

(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for an increase in the carbon charge component of the mineral oil tax on petrol and auto-diesel, with effect from midnight tonight. The carbon charge for those fuels is being increased from the equivalent of €15 per tonne of carbon dioxide emitted to €20 per tonne. When VAT is included, the increase on petrol is just under 1.5 cent per litre, and the increase on diesel is just over 1.5 cent a litre. The increase also applies to the mineral oil tax rate for aviation gasoline, which is aligned to the petrol rate, and the rates for heavy oil used for recreational flying and boating, which are aligned to the auto-diesel rate. It is intended that the same increase from €15 to €20 per tonne of carbon dioxide emitted will be extended to all other types of mineral oils and to natural gas from 1 May next year, and the necessary provisions for this will be included in the Finance Bill.

The yield from the carbon charge increase across all fuels is expected to be around €80 million in 2012 and €109 million, inclusive of VAT, in a full year. The impact on the consumer price index is estimated at around 0.09% in a full year.

Billy Kelleher (Cork North Central, Fianna Fail)
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There has been a six-week reduction of the fuel allowance but has this been poverty proofed by the Cabinet? There has been a strong policy commitment to increase carbon taxes but there was always a requirement for poverty proofing to ensure it would not impact on the quality of life of the most vulnerable. Has the Cabinet taken on that broad belief that we should poverty proof? If so, will it publish the documentation on this particular issue, including the impact it will have, which was highlighted to the Government when it made the decision to increase carbon tax?

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I absolutely oppose this proposition to increase excise duties on petrol, diesel and other fuels, which will have a serious impact. Once again, as with the previous proposition and indeed with the next, the target is almost the same. It will have a particularly negative impact on those involved in Border communities, including filling station owners and employees. We are creating a further imbalance in the cost of fuels north and south of the Border, thus kinking everything. The next proposition concerning VAT will further fuel - not wishing to pun - matters at this point in time. All the points I made about the last proposition apply once again to this one. It is a further tax on access to work and must be seen in the context of an ever-depreciating economic situation. People are currently finding it impossible to survive and the Government is making a bad situation even worse. We vehemently oppose this proposed increase.

Michael Kitt (Galway East, Fianna Fail)
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I call Deputy Seamus Healy. I ask Deputies to be brief because we are short of time.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The implementation of this carbon tax on home heating oils from May 2012 is obscene because it is an attack on the elderly. Yesterday, we saw a 20% reduction in the fuel allowance, and in addition gas and electricity allowances were cut from 1 September this year. Independent professional research has shown that the lack of heat in wintertime leads to the deaths of elderly people from hypothermia. Age Action Ireland has already ask how low this Government can go. I would like to see this proposal withdrawn immediately.

Catherine Murphy (Kildare North, Independent)
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People on the front line, such as the Society of St. Vincent de Paul, have specifically mentioned the issue of fuel poverty. In this regard, they have asked that the fuel allowance rate should not be cut. The number of weeks for the fuel allowance has been cut while fuel costs have been increasing excessively, so people must pay more. I am completely opposed to this measure which will subject people to terrible hardship. Ordinary families are terrified of utility bills.

The Tánaiste did not specify how this carbon tax will be used. My understanding was that carbon taxes, if applied, were supposed to be used progressively. For example, will it be ring-fenced for retrofitting houses? If so, at least something could be gained from it rather than just having a straight tax.

Timmy Dooley (Clare, Fianna Fail)
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Will the Tánaiste let us in on the thinking that decided not to introduce this home heating oil levy until next May? What advance knowledge does he have of next winter's weather conditions that makes him expect that things will be any different next winter?

Jerry Buttimer (Cork South Central, Fine Gael)
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Does the Deputy mean this winter?

Timmy Dooley (Clare, Fianna Fail)
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Has the Tánaiste had some advance sighting of a weather forecast or does be believe that economic matters will be so much better by then? Could he let us in on that, please?

Noel Coonan (Tipperary North, Fine Gael)
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The price is going down next May.

Timmy Dooley (Clare, Fianna Fail)
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The Deputies opposite will get plenty of opportunity to vote before the night is out. Was any serious consideration given at Cabinet about the issue of marked fuel oil in the agricultural sector? A number of organisations provided information to the Cabinet about this. They showed that if there was an equalisation of duty on agricultural and motor fuel, together with a rebate system for approved users, it could have raised in the region of €160 million. That would thereby take out this illicit trade which causes major environmental problems along the Border. In addition, it surely has a significant impact on the State's capacity to levy appropriate taxes. Will the Tánaiste let us in on his discussions about that? Was any serious consideration given to the implementation of this matter?

Michael Healy-Rae (Kerry South, Independent)
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I am totally opposed to this measure, as are all the motorists in Ireland travelling the roads. The price of petrol and diesel is currently double what it should be, but if prices were halved they would still be costly enough for the public. If the Tánaiste thinks it is okay to put off the heating oil increase until May 2012, is he expecting every other winter to be mild so that the elderly will not need any home heating oil? I am totally opposed to this measure. I would like to see Government Deputies doing the right thing and voting against it.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Deputies Seamus Healy and Catherine Murphy have made the point that this measure will lead to more winter deaths. Delaying it until next May does not make it any more palatable. It is a vicious attack on the most vulnerable sector of society. There is a double whammy on petrol, which will be economically damaging because VAT is also being increased. All these cuts will disproportionately hit the least well-off.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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I have been listening to some of the Deputies heckling, but they represent rural constituencies so I would like to ask them a question. Do they believe they have a world-class public infrastructure in their rural constituencies? Do they believe it is fair to impose a carbon tax on those in rural areas when there is no public transport alternative in many parts? Do they believe in their hearts that there are adequate bus services to work, schools or post offices in their communities? There have been cutbacks to all those rural transport schemes. If this money was being ring-fenced for a revolutionary approach to public transport infrastructure in rural areas, we could buy into it, but that is not happening.

Have Government Deputies been listening to hauliers in their rural constituencies? Many hauliers have had to close their businesses due to the crazy cost of diesel in recent years. Where is the support for them? How can we build the economy on that type of approach?

The cost of home heating oil will hit families who are struggling. Deputies opposite are filling up their oil tanks too, but they should try to imagine what it is like for somebody living on the dole or trying to keep a roof over their head on a basic wage. I am challenging rural Deputies on the Government benches who will have to answer for themselves when they go back to their constituencies.

Brendan Griffin (Kerry South, Fine Gael)
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How much is it in the North?

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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They will have to answer all those questions from their constituents when they go home.

Michael Kitt (Galway East, Fianna Fail)
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Order.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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I am from the north of Ireland.

Paul Connaughton (Galway East, Fine Gael)
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How much is the diesel?

Brendan Griffin (Kerry South, Fine Gael)
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I propose a carbon tax on the Opposition. There is a lot of hot air over there.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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I am from the most northerly part of Ireland and the Deputies should look at their maps again to learn their geography.

Brendan Griffin (Kerry South, Fine Gael)
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It is very polluting.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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I will leave it at this. Those opposite should look into their hearts. They know I am right.

Brendan Griffin (Kerry South, Fine Gael)
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At least we have a heart.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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They know this is wrong. Go back to the constituencies and look at the people with no public transport.

Noel Coonan (Tipperary North, Fine Gael)
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Look after one's own.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Look at how they are being taxed in these difficult times. Do that with a conscience.

Michael Kitt (Galway East, Fianna Fail)
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I ask Deputy McGrath to be brief. There are many Deputies who wish to contribute and only a few minutes remain.

Mattie McGrath (Tipperary South, Independent)
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Is there any significance to the fact that there is only one Labour Deputy in here? Is it a case of last in, first out, as we saw today with the party's newest Deputy? The Tánaiste could go back to the people on this.

Michael Kitt (Galway East, Fianna Fail)
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The Deputy should speak to the resolution.

Mattie McGrath (Tipperary South, Independent)
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Where is the compassion and feeling? Dublin West will be getting ready for another by-election.

Michael Kitt (Galway East, Fianna Fail)
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The Deputy should speak on the resolution.

Mattie McGrath (Tipperary South, Independent)
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There are many people knocking on doors.

Noel Coonan (Tipperary North, Fine Gael)
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Mattie is looking to get back in again.

Mattie McGrath (Tipperary South, Independent)
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The Deputies have met road hauliers, who are closing their businesses at a rate of one per week. It is happening in Deputy Coonan's area too.

Noel Coonan (Tipperary North, Fine Gael)
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Do not fall into the hole.

Mattie McGrath (Tipperary South, Independent)
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We have heard stories of families buying five gallons of oil to run the heating.

Mattie McGrath (Tipperary South, Independent)
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This is what arises from the merciless measures of those in the Government. What about all the empty rhetoric of the last number of years? It is like snow off a ditch.

Jerry Buttimer (Cork South Central, Fine Gael)
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All the one in the Opposition.

Mattie McGrath (Tipperary South, Independent)
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The Deputies should be ashamed of themselves.

Jerry Buttimer (Cork South Central, Fine Gael)
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He is-----

Noel Coonan (Tipperary North, Fine Gael)
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What about South Tipperary County Council?

Michael Kitt (Galway East, Fianna Fail)
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I call Deputy Joe Higgins. There is only a minute left.

Mattie McGrath (Tipperary South, Independent)
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I am my own man.

Mattie McGrath (Tipperary South, Independent)
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I am entitled to reply.

Joe Higgins (Dublin West, Socialist Party)
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The best thing I can say for the Tánaiste and the Government tonight is that we have been spared the hypocrisy going on that this was another critical environmental measure. I am sure if the Greens were still in Government we would have been lectured tonight about how important it is to lash on extra taxes on oil and petrol for the environment. Of course it is not. Using increased taxes on carbon as an environmentally friendly measure is the crudest mechanism that could be used. It is like pretending that putting the price of cigarettes up by 25 cent was a health measure. This measure will hit ordinary working people, particularly those who need their cars to get to their place of employment.

The carbon reduction policy is crucial for our planet but in the European Union it has been reduced to farce. We now have a market set up in speculation in carbon credits, which operates in the same chaotic way as the financial markets we know all about. That is not how we save our environment. This is another crude measure to raise more money to pay off the banks and speculators, which is why it must be opposed.

Michael Kitt (Galway East, Fianna Fail)
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There is only time for Deputy Dessie Ellis.

Dessie Ellis (Dublin North West, Sinn Fein)
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Last week in Buswells Hotel we met representatives of road haulage firms. They outlined a number of areas which they feared would have a significant impact on their industry, one being a carbon tax increase. They outlined a number of areas where money could be chased, with one being diesel laundering where there is much money being lost to the State. Another idea was to use a new method to harmonise the discrepancies between the two types of diesel, and there is potential for savings in that regard too.

These are two areas with potential savings which could be utilised in preference to punitive tax on people which will affect everybody. How much of this tax will be used for environmental purposes? Will the tax be put in central funding or will it be used to implement environmental policy? We have been told that in the past that has not been the case. We are all in favour of cutting carbon emissions but will all the money be used in that area?

Eamon Gilmore (Dún Laoghaire, Labour)
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One of the standard questions often asked of Opposition parties - those currently in Opposition are no exception - is that if additional tax will not be placed on working people, as this Government has chosen-----

Micheál Martin (Cork South Central, Fianna Fail)
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Is that a joke?

Mattie McGrath (Tipperary South, Independent)
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It is a joke.

Eamon Gilmore (Dún Laoghaire, Labour)
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There have been no income tax increases-----

Micheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste should not believe his own propaganda.

Eamon Gilmore (Dún Laoghaire, Labour)
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-----on working people in this budget.

Timmy Dooley (Clare, Fianna Fail)
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I know we are near Christmas but Santa does not exist.

Eamon Gilmore (Dún Laoghaire, Labour)
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The Opposition is constantly asked where it would get the tax. The answer is always a carbon tax.

Dessie Ellis (Dublin North West, Sinn Fein)
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The working people.

Timmy Dooley (Clare, Fianna Fail)
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The Tánaiste spent a fair bit of time at that. He used his magic.

Eamon Gilmore (Dún Laoghaire, Labour)
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In the national recovery plan, Fianna Fáil-----

Micheál Martin (Cork South Central, Fianna Fail)
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We are not opposing it.

Eamon Gilmore (Dún Laoghaire, Labour)
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-----provides for a doubling of the carbon tax from €15 to €30 per tonne.

Micheál Martin (Cork South Central, Fianna Fail)
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We do not oppose it.

Noel Coonan (Tipperary North, Fine Gael)
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What are they doing?

Eamon Gilmore (Dún Laoghaire, Labour)
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In the pre-budget statement that it produced, Fianna Fáil-----

Billy Kelleher (Cork North Central, Fianna Fail)
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On a point of order, could we be spared the lecture?

Brendan Griffin (Kerry South, Fine Gael)
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They cannot have it every way.

Billy Kelleher (Cork North Central, Fianna Fail)
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We are not opposed to it.

Eamon Gilmore (Dún Laoghaire, Labour)
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I am very glad to hear that.

Noel Coonan (Tipperary North, Fine Gael)
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Mattie was one of them at the time.

Timmy Dooley (Clare, Fianna Fail)
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I asked a question on the equalisation of taxes-----

Mattie McGrath (Tipperary South, Independent)
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Hold on now.

Micheál Martin (Cork South Central, Fianna Fail)
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We are not opposing this at all.

Eamon Gilmore (Dún Laoghaire, Labour)
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I am glad to hear it because-----

Micheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste is implying that we are.

Noel Coonan (Tipperary North, Fine Gael)
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Deputy McGrath wants to get back in.

Micheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste cannot set up a straw man again. We are not opposing this.

Eamon Gilmore (Dún Laoghaire, Labour)
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In the pre-budget submission-----

Michael Kitt (Galway East, Fianna Fail)
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The time is up.

Micheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste should not mislead the House.

Eamon Gilmore (Dún Laoghaire, Labour)
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I am not.

Micheál Martin (Cork South Central, Fianna Fail)
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The Government is attacking many working people.

Mattie McGrath (Tipperary South, Independent)
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We are having-----

Noel Coonan (Tipperary North, Fine Gael)
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We will lobby for Mattie and get him in.

Mattie McGrath (Tipperary South, Independent)
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Go back to school.

Micheál Martin (Cork South Central, Fianna Fail)
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The motor tax is a tax on working people.

Michael Kitt (Galway East, Fianna Fail)
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The Tánaiste, without interruption.

Noel Coonan (Tipperary North, Fine Gael)
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We will get him back.

Eamon Gilmore (Dún Laoghaire, Labour)
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I am not misleading the House.

Billy Kelleher (Cork North Central, Fianna Fail)
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He is.

Eamon Gilmore (Dún Laoghaire, Labour)
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I am putting on the record Fianna Fáil's stated position-----

Timmy Dooley (Clare, Fianna Fail)
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He is trying to get a few Labour Deputies back into the House.

Micheál Martin (Cork South Central, Fianna Fail)
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Taxing the working man.

Eamon Gilmore (Dún Laoghaire, Labour)
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-----on the issue. It is supportive and in the pre-budget submission, it stated that the rate should be €20 per tonne.

Micheál Martin (Cork South Central, Fianna Fail)
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Yes.

Timmy Dooley (Clare, Fianna Fail)
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We supported it here. We asked about the equalisation of duties for diesel.

Mattie McGrath (Tipperary South, Independent)
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There is a separation.

Micheál Martin (Cork South Central, Fianna Fail)
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That was in the document.

Noel Coonan (Tipperary North, Fine Gael)
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Mattie and Fianna Fáil are all the one.

Mattie McGrath (Tipperary South, Independent)
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Not at all.

Eamon Gilmore (Dún Laoghaire, Labour)
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Take it easy.

Michael Kitt (Galway East, Fianna Fail)
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The time has expired.

Noel Coonan (Tipperary North, Fine Gael)
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There was a time when Mattie was proud to be in with them.

Mattie McGrath (Tipperary South, Independent)
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Fadó, fadó.

Eamon Gilmore (Dún Laoghaire, Labour)
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A question has been raised about the measures-----

Noel Coonan (Tipperary North, Fine Gael)
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I will not tell Tom.

Eamon Gilmore (Dún Laoghaire, Labour)
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-----being taken by the Government to deal with fuel poverty and the difficulty people have in meeting their fuel bills. There has already been a "no disconnection" policy introduced this winter by the Minister, Deputy Rabbitte, for families struggling with utility bills.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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They will be disconnected in the summer.

Eamon Gilmore (Dún Laoghaire, Labour)
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That has been agreed with the energy companies and there will be no disconnections this winter for families in financial difficulty.

Timmy Dooley (Clare, Fianna Fail)
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Perhaps they will take the lead from the Minister, Deputy Varadkar, and be sent to sunnier climes on holiday.

Eamon Gilmore (Dún Laoghaire, Labour)
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This measure exempts solid fuel such as peat briquettes, logs and coal from any increases in carbon tax. I do not understand the argument being made by some Deputies in respect of home heating oil that the measure should be brought forward. We have agreed it will not apply until May 2012.

Timmy Dooley (Clare, Fianna Fail)
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The question is about next winter. What will happen to make things better?

Mattie McGrath (Tipperary South, Independent)
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And the summer.

Brendan Griffin (Kerry South, Fine Gael)
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Deputy Dooley will be out in the cold for a while anyway.

Eamon Gilmore (Dún Laoghaire, Labour)
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As the Leas-Cheann Comhairle is encouraging me to wrap up-----

Timmy Dooley (Clare, Fianna Fail)
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The Deputy should put on that red shirt again.

Eamon Gilmore (Dún Laoghaire, Labour)
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-----I have taken-----

Brendan Griffin (Kerry South, Fine Gael)
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We were left with a hair shirt after the Deputy's party.

Eamon Gilmore (Dún Laoghaire, Labour)
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I have taken note of the concerns expressed by Sinn Féin about the problem of illegal laundered diesel.

Micheál Martin (Cork South Central, Fianna Fail)
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Deputy Dooley raised the fuel laundering matter. It is a big problem in Border counties.

Eamon Gilmore (Dún Laoghaire, Labour)
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The Government will pursue that.

Michael Kitt (Galway East, Fianna Fail)
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I am now required to put the question.

Micheál Martin (Cork South Central, Fianna Fail)
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They are very concerned about fuel laundering in the Border counties.

Billy Kelleher (Cork North Central, Fianna Fail)
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If anybody has any information on it, they can bring it to the Tánaiste.

Micheál Martin (Cork South Central, Fianna Fail)
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I believe some of it is used for political purposes.