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Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: I am pleased to have the opportunity to speak on this motion and to support the Government amendment moved by my colleague, the Minister for Finance. Fine Gael's motion is leading us in the wrong direction. It is a short-term reaction that will do nothing to help people and the economy to face energy problems in the longer term. These problems will not arise in five or ten years' time;...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: Last week the head of the OECD——

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: ——implored countries to avoid the short-term political reaction and recognise that the only way to address security of supply and peak oil is to reduce demand.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: That has to be our fundamental response but nothing in the Fine Gael motion will help us to deliver that. It advocates helping the partnership talks, turning round our ailing construction industry and reducing the cost of home heating oils.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: No, it does not.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: Fine Gael would put the small two cent coin in every euro back in play. As the Minister for Finance argued last night, those two cents are more likely to end up in the pocket of the market in which Fine Gael appears to have such faith.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: That will not address the fundamental issue of security of supply. The Government's response is much wider and our amendment recognises the solutions we need to introduce. We recognised the flaws in the emissions trading scheme and argued strongly that it should have been structured differently. That is why we are reviewing it. We acknowledge the issue is complex but we now have an...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: I will speak about Spain presently. The UK decision has implications for Ireland because we acted correctly by consulting the single electricity market committee, which is responsible for regulating this complex market system, and its advice contradicted the approach taken by Fine Gael. It recognised, however, that the decision is ultimately for the Government to make. We will continue to...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: One of the measures——

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: I am not misleading the House. The Deputy can consult the report issued by the committee in March.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: It outlined the various difficulties involved.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: We can discuss the committee's advice in detail but five of the ten minutes allotted to me are now gone.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: As part of our ongoing review, we examined policies in other European countries. As Deputy Coveney noted, Spain has introduced such a scheme but this is being challenged in the Spanish courts and by the European Commission. We are rightly following our own legal advice in investigating our options because we recognise that complex legal issues arise. I am proud of the work done by my...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: Deputy O'Donnell. I will show Deputy Coveney the relevant passage later.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: I will do so. Deputy O'Donnell stated: The Taoiseach also said it is important point out that the revenues available to the ESB and others are factored into their capital programmes for providing alternative energy sources. This is a point on which we fundamentally disagree with the Government. This seems to indicate that Fine Gael disagrees with the ESB's reform strategy.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: If I may, I wish to finish my contribution.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: This is a fundamental example of matters in respect of which we have different views. Fine Gael's response is to reduce taxes. This is similar to Senator Hilary Clinton's assertion that there should be a tax holiday in the US because energy prices are high. Our response is different and is based on trying to use key measures, in respect of the ESB and in other areas, to reduce demand. We...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: The amount of money people would save would be a multiple of the 2 cent reduction that Fine Gael proposes to introduce. The latter would not provide any assistance in the context of a long-term reduction in electricity prices. It is important and correct that the Government amendment refers to a number of key areas in the economy in respect of which changes must be made. In that context,...

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: ——to engage with the hugely important task of becoming more energy efficient. Those on the opposite side of the House may laugh at this initiative and demean it by stating that it is merely me saying that we must tighten our belts.

Carbon Allowances: Motion (Resumed) (5 Jun 2008)

Eamon Ryan: It is the crucial response. Deputy McManus sneered as if to say that this scheme is not a key policy development. It is the key policy development and will be achieved by the Government supporting a number of programmes and ensuring that there will be an incentive for people to do the right thing. That is set out in the amendment. Rather than trying to offer a short-term response to this...

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