Michael McGrath (Cork South Central, Fianna Fail)
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Question 91: To ask the Minister for Finance the position regarding the application of the carbon tax to coal and commercial peat. [6592/11]

Michael Noonan (Limerick City, Fine Gael)
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The section in the Finance Act 2010 that provides for application of the carbon tax to solid fuels (coal and commercial peat) is subject to a Ministerial Commencement Order. This approach was primarily adopted in order to allow time for a robust mechanism to be put in place to improve the control of high sulphur coal being sourced from Northern Ireland suppliers. The Department of Environment in conjunction with the National Standards Authority of Ireland (NSAI) have proposed new regulations for coal which would effectively extend the existing voluntary agreement for low sulphur coal to the entire State on a compulsory regulatory basis.

A stakeholder committee was established last year to provide an input into the proposed regulations. Under EU law dealing with technical barriers to trade, Ireland is required to notify the European Commission of all draft technical regulations concerning products before they are adopted in national law. Formal notification of the proposed new standard for coal issued from NSAI to the EU Commission in November 2010. It is understood that the Commission's response is expected in the near-term.