Tommy Broughan (Dublin North East, Labour)
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Question 52: To ask the Minister for Finance if he will review the imposition of a carbon tax on Dublin Bus which, along with the abolition of the fuel rebate, cost the company €14.1 million last year, in view of the critical role that Dublin Bus and other public transport services play in reducing carbon emissions by encouraging the modal switch from private cars; and if he will make a statement on the matter. [9596/11]

Michael Noonan (Limerick City, Fine Gael)
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It must be recognised that emissions from the transport sector remain significant. The carbon tax is about sending price signals to the sector as a whole. The carbon tax does not differentiate between private and public transport per se, however, the impact on public transport will be far less than on private transport by virtue of the fact that the carbon tax is dispersed amongst more people, for example, using a bus compared to an individual in a car.

Consequently, the carbon tax will be proportionately less for users of public transport which should be an incentive for its use. In addition, the carbon tax provides an incentive for both private motorists and providers of public transport to invest in fuel efficient cars and buses when they are making future purchasing decisions. In relation to the fuel rebate scheme, a derogation under EU Directive 2003/96 on Energy Taxation allowed the application of a reduced rate of Mineral Oil Tax to fuel used for the purposes of certain road passenger services. Arising from an EU Commission decision, that derogation has expired and the arrangement was, therefore, terminated by the Finance Act 2008. It would not be possible, having regard to the relevant provisions of EU law, to re-introduce a scheme of that nature for those services.