Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

The Senator can give me a shout. I might be a help in that regard.

With regard to the firelog, which Senator Brennan describes as a glorified firelighter, I do not wish to shunt responsibility to the Department of the Environment, Community and Local Government but my understanding is that the specification of what is and is not fossil fuel and what is and is not a by-product came from that Department following an extensive consultation with industry representatives. As to why the firelog is included for the purposes of the carbon tax, the Senator makes a fair point. However, from our perspective on the finances side, we simply implemented that which came from the Department of the Environment, Community and Local Government. Without shedding responsibility, in fairness it is probably a more specific issue for that Department.

On the second issue raised by Senator Kelly, I appreciate his point. The Minister, Deputy Noonan, made it clear in his Budget Statement that there is a phased introduction of this carbon tax over a period of two years. The reason for doing this is that those fossil fuels have the most carbon content and if one is trying to change patterns of behaviour it is a long-standing practice that taxation instruments provided for in every Finance Bill can be used for that purpose. In any event, we will have to look at all of the evidence that will flow from this. The Senators have raised this in May and it was only applied from yesterday, so it is a timely issue. Of course, we will continue to examine the implementation of this. That there will be truck loads of people heading to the North to bring coal back across the Border is something we would have to consider should it happen.

The tax is in place from 1 May and there will be another increase on 1 May next year. We will keep a close eye on this from the financial perspective. Projections have been made for this tax from our national financial perspective in terms of the profiling of the amounts to be obtained from this. It is an issue of direct relevance because if we say we will obtain money from a tax, it is important that we obtain it. Obviously, therefore, this matter will be kept under constant review. However, I will convey the issues the Senators raised to the Minister.