Seanad debates

Tuesday, 13 December 2022

Finance Bill 2022: Report and Final Stages

 

11:00 am

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

The Government provided nearly €2.4 million in subsidies to the fossil fuel industry in 2019, which is more than 70% higher than the subsidies given in 2000. The allocation has been growing substantially. I focus in this recommendation on one aspect of fossil fuel subsidies, namely, the excise duty exemption for jet kerosene used in both domestic and international commercial aviation. The revenue forgone from that measure was €634 million in 2019. It dwarves some of the moneys being spent on things like promoting active travel. We are subsidising the use of a fossil fuel, kerosene, for one industry. I welcome the recent comments by the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, that we need to look at aircraft leasing and the use of private jets. There is a very large aircraft leasing business in Ireland and private jets play a specific role in the impact on climate and greenhouse gas emissions.

As I said, the jet kerosene element of our fossil fuel subsidies amounted to €634 million in 2019, which is the most recent year for which I have the data. The figure may be higher or lower this year. Is that excise duty exemption being examined and is it something we might see being rolled back, perhaps next year? It is a real concern, involving huge expenditure on something that is taking us in the wrong direction in respect of our carbon reduction targets.

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