Paul Bradford (Fine Gael)

I welcome the Minister of State. May Day on 1 May is generally celebrated across the world as a day for workers and a day on which work and job creation should be at the top of the political agenda. In this country, unfortunately, on 1 May 2010 the Government will introduce a system of carbon taxation which will cost jobs in rural Ireland and will add to the ever-increasing pressure on the farming community. The introduction of the carbon tax will deliver a further body blow to the hard-pressed agricultural sector.

When the Minister for the Environment, Heritage and Local Government announced the carbon budget last December, the only sop to rural Ireland and the farming community in particular was that it would be implemented on 1 May this year and there was hope and the expectation that negotiations could take place and a derogation given, especially for those who use agricultural diesel. This matter was raised during the debates on the Finance Bill in both Houses but it remains the position that on 1 May the price of agricultural diesel will be affected by the introduction of the carbon levy.

We are told the levy will cost the agriculture sector €12 million annually and the economy approximately €300 million. It will be a body blow to economic competitiveness and to competitiveness in rural Ireland and in the agriculture industry. It is significant that while Ireland is rushing to introduce a carbon tax, the French Government has decided to put the introduction of such a tax on hold until broader agreement is reached on it at European level. At the stroke of a ministerial pen in France, French agriculture and industry will be much more competitive relative to industry in this country. The Minister of State, Deputy Connick, comes from the rural constituency of Wexford. He knows the facts and figures about farming and that agriculture has never been under so much pressure across all its sectors. The tillage sector which has suffered significant income losses in recent years will be strongly hit by the imposition of a carbon tax.

The concept of a carbon tax was an easy sell politically for the Government because it was seen as something good from an environmental perspective. All of the measures we introduce must be considered across a range of benchmarks. We should only introduce a carbon tax after serious consideration if it is to add to our cost base, suck in excess of €300 million out of the economy and remove up to €12 million from the agriculture sector. Even at this late stage I hope the Government will be as willing as the French Government to reflect again and consider the wisdom of the introduction of such a tax. We will add to the cost of every litre of agridiesel used the length and breadth of the country. That will impact hugely on the tillage sector and all of the contractors who will be at work during the summer cutting hay and silage. Irish agriculture is under significant pressure and the introduction of a carbon tax will be a tipping point for many farm families and communities.

At a time when approximately 500,000 people are out of work, every piece of legislation we enact, every proposal we bring forward and every regulation we introduce should be benchmarked against whether it will add to the jobs or jobless total. Unfortunately, the introduction of the carbon tax will lead to an increase in the jobless total. It will not lead to the creation of one job but its imposition will significantly add to the number of unemployed because it will increase the cost to industry and agriculture and make the economy less competitive. It will add to our spiralling unemployment tally, something on which we must reflect seriously.

Everyone in the House and across the political spectrum wants to improve the environment. A considerable number of measures can be put in place to achieve this, but the cost of the carbon levy will impact too severely and negatively on rural areas and farm communities. I appeal, therefore, to the Minister of State and his colleagues to reconsider the introduction of the carbon tax. I hope they will take on board the wise course of action of the French Government and put the project on hold until more work has been done across the European Union to introduce a more balanced and fair system of carbon taxation.