We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Climate action and carbon tax

Summary

Mary Lou McDonald criticised the Government's climate response and said young protesters were demanding real system change, not tokenism. Paschal Donohoe defended carbon pricing and the climate action plan, citing expert support and arguing Sinn Féin should state its position clearly; the exchange continued with sharp back-and-forth on hypocrisy, trade-offs, and protecting vulnerable people.

We were all deeply impacted on by the determination and passion of the thousands of young people who took to the streets of Ireland on Friday to demand action on climate change. When it comes to the greatest threat facing our planet, young people are leading from the front. Their message is very clear, easily understood and makes sense. They are five words that will make a difference if listened to by those in power and the Government, namely, "system change, not climate change". They have asked for action to bring the urgency and radical policies the climate crisis deserves. Unfortunately, the Taoiseach has not heard them. They did not ask the Government to tinker at the edges, for half measures or to pass the buck; however, that is precisely what Government's proposed increase in carbon tax is. An increase in carbon tax passes the buck to hard pressed low and middle income families who are already fighting to make ends meet, while wealthy corporations are given a pass. The increase will hit families who are paying the equivalent of a second mortgage in childcare fees, young workers whose incomes are soaked up by extortionate rents, those living in rural Ireland who must use their cars to get around and pensioners who struggle to meet the cost of heating their homes. It is tinkering because we know from international evidence that carbon taxes do not work. They do not reduce carbon emissions or change people's behaviour. It is a half measure because the Government's proposals miss the crucial point. It has done very little to enable people to transition to a low carbon lifestyle and offset the tax. It has failed to invest properly to provide viable alternatives in the areas of transport, fuel and heating. Everyone accepts that we must do more and that we must do better, but we must also agree that climate response policies must be just and fair and, more importantly, that they must work. I call on the Government to consider a workable alternative, to fund climate action through progressive taxation and then invest in and deliver world-class public transport, to invest in renewable energy infrastructure and retrofitting housing stock. These are the measure that should be undertaken. The young people who protested last Friday want genuine investment in climate action. A carbon tax increase will not deliver on that demand and it is unforgivable to pretend otherwise. Will the Minster use the budget to map out a real climate action investment plan for which he will put up the cash and indicate that it will not include an increase in carbon tax?

Comment on this

The Deputy made reference to international evidence and the opinions and views of experts. I will quote our expert in this area, namely, the chairman of the Climate Change Advisory Council, Professor John FitzGerald. He stated:

A massive body of evidence from across the world shows that carbon taxes are essential. There are very few carbon tax deniers in the economics community. A recent statement by a large number of American economists, including 27 Nobel prize winners, identified carbon taxes as essential for the US and the world.

I am well aware of the impact any change in carbon pricing can have on those who are vulnerable. I am well aware of the impact it can have on those who are on low incomes and find themselves in a vulnerable position, but I am equally aware of the body of international evidence that states changes in the pricing of carbon are an invaluable way for economies to respond to the existential challenge of climate change. Sinn Féin has form in that regard. It is a party that supports the broadening of the tax base, but it is against the local property tax. It is a party that supported investment in water infrastructure, but it is against water charges. It is a party in which inconsistency and hypocrisy are embedded in how it handles policy issues. What will it state to the young people who are out protesting? What will it state to those children who left their schools last week, all of whom are looking for significant change? All of the experts in this area advise that an element of that change needs to be how we can evolve the pricing of carbon in the future. Let me re-emphasise what I said before and what the Taoiseach said in New York yesterday. Any move in carbon pricing, if it is agreed to by the Government and supported by the Dáil, is one that will ensure all the revenues will go back to helping those who are in need in the country owing to that change and towards helping the economy to invest in the kind of change that is essential to enable us to deal with climate change. What will the Deputy say to all of the communities and people who are looking for progress and leadership? Yet again, Sinn Féin pretends it can happen without any change or cost.

Comment on this

The Minister is correct to point out that Sinn Féin has consistently been against regressive forms of taxation that hit people on lower incomes. As it happens, I have two climate strikers in my home. I say to all of the strikers what I have said to them, namely, that tokenism will not cut it.

Comment on this

It worked for the Deputy.

Comment on this

We will not indulge in it as a political movement. I say the same thing to the strikers that I have said to my own two climate strikers, namely, that we will not let the Government get away with it either. We have had a carbon tax here for ten years and emissions have risen massively. That is the fact of the matter. Those who commend carbon tax do so only in the context of alternatives available to citizens to trigger the behavioural change needed. The Minister knows this, but he is taking the lazy approach. The easy and lazy thing to do is to have a go at Sinn Féin or anybody on the left who understands climate justice and a just transition have to be about more than passing the buck and punishing people who are poorer in society. It has to be about systemic change, but it seems that the Minister does not have the belly for this. I asked him to drop his hike in carbon tax in favour of investment in a real and radical plan that would make a difference and reduce emissions. Is he prepared to do this in the budget?

Comment on this

Tokenism will not cut it, but hypocrisy will not cut it either. We have a plan. The climate action plan laid out by the Minister for Communications, Climate Action and Environment, Deputy Bruton, and the Taoiseach lays out how, in the years to come, we will invest more in ensuring renewable energy will play a larger part in the economy, we will have more homes retrofitted across the country and that we will have the right transport and planning framework in place to allow the economy and citizens to make the changes needed.

We are considering the role the pricing of carbon may play in that regard. Deputy McDonald is calling for additional investment and sustainable and structural change, but she does not have the honesty to explain how it can happen, or how we can pay for the additional investment needed.

Comment on this

That is not true.

Comment on this

Carbon pricing levels have been in place for many years. The Deputy claims that behaviour has not changed, but she fails to acknowledge that the price of carbon has not changed either. All we are considering is whether the pricing of carbon can play a role in the change people of all generations want to see happen. Sinn Féin needs to spell out clearly where it stands on the great pressing issue of climate change.

Comment on this

I hope the Government will listen.

Comment on this

Will Sinn Féin repeat its normal mantra of cynicism and hypocrisy and look to blame others? Instead, the party might perhaps reflect the potential consensus in the Dáil on the need for honesty about trade-offs and a commitment to protect the most vulnerable.

Comment on this

Start collecting the €13 billion in taxes now.

Comment on this