Feargal Quinn (Independent)

I welcome the Minister of State. I gave a lengthy interview on Ryan Tubridy's show approximately three years ago, towards the end of which I was asked that if I was starting out now, into what business would I go. I stated at the time that anything to do with renewable energy - wave, wind or tidal - was the route to take. I have received many letters and other communications in the interim from people who have outlined the alternative energy projects with which they have become involved. There is a great deal of work taking place in this area and we must recognise that the advent of climate change targets has altered attitudes.

It is interesting to see just how much activity is taking place in certain areas. At Clongriffin, which is near the area in north County Dublin where I live and adjacent to the constituency Senator Brady represents, five wind turbines were erected approximately two years ago but they are not in use. I wonder what has gone wrong. These turbines were in use when they were first erected but that is no longer the case.

In recent years, particularly during the Celtic tiger era, when trying to explain to people from abroad why Ireland attracted so much foreign direct investment and had become so successful, I found myself referring to our low tax base, access to the European Union and our highly educated, English-speaking population. The people in question are now informing me that high wage, rental and energy costs have priced us out of the market. In such circumstances, anything we can do to make the country more competitive in the future will be extremely important.

I am concerned that the implementation of a carbon revenue levy will have a negative impact on the economy and may hinder its recovery. I accept that the Bill relates to a particular aspect of the economy, namely, electricity generation, but I am of the view that not enough questions have been asked about the imposition of a carbon levy at what I believe to be the most inappropriate juncture. A carbon tax has already been imposed in respect of gas and other fuels and some estimate that this has given rise to a 6% increase in the cost of gas to businesses. This can be called a levy, but it is a tax which is imposing an additional cost on businesses and placing them at a disadvantage vis-À-vis their international competitors.

Several EU member states such as France are extremely sceptical about imposing national carbon levies because they are of the view that they cannot commit their economies to further strain in a competitive market. The French energy Minister stated his country's energy tax was being postponed indefinitely so as not to "damage the competitiveness of French companies" and indicated his concern that it would be too risky for France to go it alone without the rest of the European Union. Several new reports have contested claims that more jobs would be created if a carbon levy was introduced. For example, a new French Government study concludes there would be a significant risk of carbon leakage if such a levy was brought in. By carbon leakage they mean industries would move to other parts of the world in order to avoid punitive climate change costs.

In an even wider context, countries such as Germany believe the European Union should not move without global agreement on the cutting of CO2 emissions. It is interesting to note that the Union is abandoning the drive to unilaterally commit to cutting greenhouse gas emissions by 30%. Last month, when asked about speeding up the reduction of CO2 emissions, the Union's Climate Action Commissioner, Connie Hedegaard, observed, "Are the conditions right now? Would it make sense at this moment? My answer would be no." I agree with the Commissioner. Many politicians across Europe appear to have picked up on public sentiment to the effect that the priority now is not solely the reduction of CO2 emissions or imposing massive hindrances on businesses and that we should focus on job creation and a return to prosperity. We should resume the debate on imposing measures such as the carbon levy only when the country has returned to a position of robust economic growth. We should now concentrate on every small measure that would help businesses to survive, thrive and expand in order that they can pick up when the economy recovers which l hope will happen soon. I have serious concerns that the priority should be the creation of jobs and the encouragement of enterprise - we may have to put the reduction of emissions on the back burner.

I am concerned that new figures show the carbon charge will generate €250 million this year but only €130 million is going to schemes earmarked for this money. I would be interested to see the plans for the remainder of that sum.

The Minister of State is trying to do the right thing and the objective is laudable, but I must ask if this is the right time to be doing this.