Michael Healy-Rae (Kerry South, Independent)
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197. To ask the Minister for Finance if he will postpone and review the carbon tax at a time when one in five households is in fuel poverty; and if he will make a statement on the matter. [9119/14]

Derek Nolan (Galway West, Labour)
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212. To ask the Minister for Finance the reason for a further increase in the carbon tax, due on 1 May; his views that the doubling of the tax in just over a year is excessive; the impact of this price rise on thousands of persons around the country; and if he will make a statement on the matter. [9422/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 197 and 212 together.

The application of the carbon tax to solid fuels remained subject to a Ministerial commencement order since 2010. This approach was primarily adopted to delay the application of the carbon tax to solid fuel in the residential sector to allow for the development of a robust mechanism to counter the large scale sourcing of coal from Northern Ireland where lower sulphur standards apply.  Such a mechanism is in place since June 2011.

The application of the carbon tax to solid fuels was further postponed in 2012 given the overall tax increases in Budget 2012 including in the standard rate of VAT. The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment.  It should also be noted that solid fuels have the highest carbon content of all fossil fuels. As a result they are considered the dirtiest fuels and given the environmental impact it is important that they are taxed.

As I was aware of the potential impact on lower income households, I chose not to introduce the carbon tax on solid fuels until after the 2012/2103 winter period and I opted to introduce the tax in two phases i.e. €10 per tonne of CO2 from 1 May 2013 and a further €10 per tonne of CO2 from 1 May 2014 thus bringing the carbon tax on solid fuels in line with that on all other fossil fuels i.e. at €20 per tonne of CO2. While tax increases are unpopular, where Member States are under fiscal pressure, it makes sense to increase taxes in areas where some benefits can arise, in this instance a carbon tax promotes energy efficiency, reduces emissions and reduces our dependence on imported fossil fuels. Accordingly I do not intend to defer the further increase of €10 per tonne of CO2 emissions from 1 May 2014.