Eamon Gilmore (Dún Laoghaire, Labour)
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Question 191: To ask the Tánaiste and Minister for Finance the specific means by which he will use the taxation system to encourage good environmental behaviour and discourage poor practice, for example, through rebalancing the VRT system to reward the purchase of greener cars. [17801/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The tax system can be used either to encourage or to deter certain behaviours which have an impact on the environment. I have been using the tax system to promote good environmental behaviour through the following policies:excise relief of over 200 million euro for biofuels over 5 years from 2006; 50% VRT relief for flexible fuel vehicles, hybrid cars and electric cars; the inclusion of recycling companies in BES/Seed Capital Schemes from 200; and extending the tax relief for corporate investment in renewable energy.

In addition, as the Deputy will be aware, in my 2007 Budget Statement, I announced that I planned to introduce changes to the current VRT system to take greater account of environmental issues, and in particular Carbon Dioxide (CO2) emissions. The Programme for Government re-affirms this commitment. A public consultation in this regard has taken place. Work on the matter is ongoing and a range of possible options are being considered at this stage. It is intended that the changes made to the VRT system will be broadly revenue neutral.