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

The reason I raised my hand was because the Minister referred to the immediate introduction of the equalisation of taxation. That implied my recommendation proposed that immediate introduction. I am only looking for a report that would explicitly refer to diesel for agricultural vehicles in terms of tax relief or revenue forgone and the diesel for HGV and other haulage vehicles. It may well be that the rebate scheme is worth €20 million. That should be discontinued. However, I also believe that we need a pathway for the equalisation of tax on diesel and petrol. The Minister characterised it as me putting forward a proposal to do it immediately when that is not reflected in the language of my recommendation. It calls for a report on diesel and kerosene subsidies, and specifically names jet kerosene, diesel for HGVs and diesel for agricultural vehicles. The Minister did not present my proposal accurately.

The Minister asked whether I think we need to move towards an equalisation of tax on diesel and petrol and I think we do. I agree that it might take longer than the tax rebates. The main thing I want is more engagement and a report on these issues. We should not have a situation where, on the one hand, we are moving ahead with increases in carbon pricing in one area and, on the other hand, a general plan that we may move away from these specific diesel subsidies over time. We must bear in mind that from both a climate and health perspective, diesel is a damaging substance because it has a higher rate of nitrous oxide and particulates. We want to discourage and stop the use of diesel. That may be a longer piece but we can certainly start by addressing the rebate scheme.

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