Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

Question 186: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the impact the introduction of carbon taxes will have on competitiveness in industry and particularly within the small medium enterprise sector. [37919/09]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The proposed introduction of a carbon tax is a commitment in the renewed programme for Government and is in response to our international obligations under the Kyoto Protocol to reduce emissions of greenhouse gases.

Work is under way to design a carbon tax that will reflect our commitment and obligation to address climate change challenges. A crucial consideration in forming a carbon tax must be the minimisation of any negative impacts on the enterprise sector, including possible impacts on competitiveness and employment. My Department is actively engaged in this assessment as part of the budgetary process.

The potential implications for industry of the introduction of a carbon tax will depend on many complex and interconnected factors and not least the level of a carbon tax, whether the revenue from the tax is recycled and whether there will be exemption provisions for companies who are already engaged in other greenhouse gas reduction measures such as emissions trading and negotiated agreements.

It is important that the level of tax be balanced between the objectives of achieving appropriate realistic reductions in greenhouse gas emissions and realising these reductions at least cost to business, thereby maintaining competitiveness in the enterprise sector.