Liz McManus (Wicklow, Labour)
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Question 167: To ask the Minister for Finance his views on calls from a combined heat and power supplier for a full relief from the proposed carbon tax for electricity generated from CHP plants; if he has received correspondence on this issue; and if he will make a statement on the matter. [10257/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have received correspondence from a number of sectors, including the CHP sector, seeking an exemption from the carbon tax.

CHP is an energy efficient process that I have supported through the introduction of generous tax reliefs such as capital allowances and consequently I do not think it appropriate to put in place a further tax subsidy. We need to ensure the carbon tax has a broad base and I don't want to undermine that principle.

I would also like to point out that a long-term impact of the carbon tax will be to incentivise energy efficient processes such as CHP.