Seanad debates

Tuesday, 14 December 2021

Finance Bill 2021: Committee and Remaining Stages

 

10:30 am

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

To be clear, it is not so much that I support these changes; it is just that I regard the cost of carbon as being high. I regard also that it is closer to an accurate reflection of those costs. It will be extremely hard to sustain. I am aware that climate change will have an extraordinarily negative and inequitable impact. On climate action, we should be taking every measure we can to ensure it does not have an inequitable impact. It is not so much that I support this, although, in a way, I have supported the fact the price better needs to reflect the costs. I would be clear that I think this is dangerous. Everybody has costs and challenges. Every household has costs and challenges. Some households coming out of this pandemic face exceptional costs and challenges. I am concerned precisely because I believe we need to have more accurate carbon pricing. The price of fuels just cannot go down and they cannot be subsidised further, as they have been for a long period of time. We have to have more genuinely reflective pricing on the cost of fossil fuels.

I am concerned that an unnecessary divide and political tension will be created if people consider that sectors, such as aviation, haulage and others, are targeted. Of course, there are difficulties with Brexit, but there are also opportunities coming through the haulage sector. We have more roll-on roll-off going directly from Ireland to the Continent and other places than before. I am concerned that people might think it is only hitting them and that it is not consistent and that there are not measures. I am also concerned that the words "over time" are a little vague. There should be a signal. Will there be a plan in the next budget, or will it be the budget after that, to end the diesel rebate scheme? Until there is a timeline on that, we will not see the kind of shift we need away from heavy diesel vehicles to those that run on alternative fuels.

We are talking about large amounts of money - €400 million on diesel fuel and €634 million on jet kerosene in 2019, as the Minister acknowledged. The amount in respect of diesel fuel has gone up since then. While I do not necessarily want it taken away from that sector, I would like to see that same amount of money re-routed towards pressing for entire fleet changes, for example. Otherwise, it will be there every single year. I would prefer that we would have front-loaded investments that encourage a transition and a major shift and a change in the haulage sector as well as a hard timeline, so that the sector knows that if it does not seize the opportunity to make the changes now, it will not be continuously underwritten. We should bear in mind that this tax subsidy is paid for by tax. Those who are paying carbon taxes in their households, and who are also paying income taxes, are indirectly subsidising diesel for this industry.

I understand that the Minister is saying it needs to come and that it will come. However, we need to be much clearer and more urgent in our action on this. I hope that next year we do not see the same diesel rebate scheme rolling on again, along with a general aspiration that the sector will change. Next year, if money is to go into this sector, let it go towards an exit.

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