John Kelly (Labour) | Oireachtas source

I raise the impending carbon tax on solid fuel, which will have effect from tomorrow. I am concerned, as are members of the hardware industry, that this will result in a loss of jobs in that sector. Apart from all that, it will be an added burden on struggling households. People may not realise that in many cases, with families using up to three tonnes of coal per year to heat their homes, their carbon tax could amount to more than their property tax. We should be very mindful of that.

When families are struggling and do not have money, they will look at other ways of providing their fuel. They will look north and get their coal provided from Northern Ireland at a cheaper cost and at a VAT rate of 5%, as distinct from 13.5% here. The sulphur content of coal in the North is 2%, whereas it is 0.7% here. It is a serious concern. When we realise it was a big mistake to levy this charge on coal, we will do what we did with diesel; we will give a rebate on costs. Hauliers were driving out of this country and filling up in foreign countries to save hundreds of millions of euro. Eventually we will address it, but we should do so before it is too late. This year was the coldest winter I can remember in years, and the fodder crisis is evidence of that. It is very important.

On the free fuel scheme, we should consider a voucher or smart card scheme, as has been highlighted by the hardware sector. If the Exchequer is giving people a free fuel allowance and they are spending that money in Northern Ireland, we are losing money. A voucher system would ensure they spent the money locally. It is important that this be brought to the Minister's attention and that this decision be reviewed as a matter of urgency before we lose jobs as well as everything else.