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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Carbon tax allocation

Summary

Deputy McGrath challenged the Tánaiste on alleged missing carbon tax funds, saying C and AG figures showed €530 million unaccounted for. The Tánaiste rejected that claim, said the money was being spent on retrofitting, fuel poverty supports and agri-environment schemes, and suggested ring-fencing the funding in law.

I wish to raise the issue of the Government's carbon tax mismanagement. Billions of euro have been collected and millions of euro wasted. The C and AG report, which the Tánaiste drew on just minutes ago, reveals that 39% of carbon tax funds are misallocated. I am very concerned about the Government's handling of carbon tax funds and the allocation of the €2.872 billion collected from 2020 to 2023. Of the €1.36 billion allocated from the increases in the tax between 2020 and 2023, a staggering 39%, amounting to €530 million, remains unaccounted for in the target areas. This glaring shortfall is a clear indication that the Government is not only failing to deliver on its promises to improve home efficiency and spend carbon tax funds in a manner that enhances renewable energy and the environment, but it is also misleading the public about the true use of these funds. Where has the rest of the money gone? This is not chicken feed; this is €530 million.

This mismanagement is not just about financial oversight; this represents a profound breach of public trust and a reckless disregard for the urgent need to address climate change effectively. The people of Ireland deserve transparency and accountability, not empty promises and squandered resources. The Government has legislated for the carbon tax to increase incrementally each year until it reaches €100 per tonne by 2030, which will continue to drive up the cost of living for everyone. Last week, Fianna Fail, Fine Gael and the Green Party increased the price of petrol and diesel as the tax reached €63.50 per tonne. I must also point to the rapid increase in carbon tax receipts, which have nearly doubled from €494 million in 2020 to €935 million in 2023. Well over €1 billion will be collected this year but the Government has neither a strategy or a plan to effectively use these funds in a meaningful way that supports key sectors, such as farmers or homeowners. Instead, these funds are being used to prop up a dysfunctional system. That is a fact. As I said, this is not chicken feed. It is massive money. It is a con job.

The Economic and Social Research Institute, which the Tánaiste always quotes, projects a potential contraction of real GDP by 1.4% by 2030 due to these tax increases, along with higher energy costs affecting all householders. This is why the Rural Independent Group has consistently campaigned against this unfair and costly tax. Will the Tánaiste explain where the €530 million has gone? It was supposed to be spent. Every time we ask a question in the House or table a written question, we get the same answer, namely, it has been spent on retrofitting. People are waiting two years to get a visit from the SEAI to upgrade their homes. This is the greatest con and the Government has been found out. These are not my figures but the figures that have been provided. The €530 million that has been taken from the people has not been given back.

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I do not accept that. The carbon tax commenced with this Government. We legislated for it to provide funds to help us reduce carbon emissions and transform certain sectors of our economy, one of the key aspects being retrofitting and creating more energy-efficient homes. The carbon tax has ensured that €262 million-----

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Will the Tánaiste answer the question?

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The Deputy asked me where the money was spent.

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I am asking where is the money that is missing.

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The Government allocated €380 million to retrofitting this year, more than half of which is dedicated to providing 100% free retrofitting to low-income households and those at risk of energy poverty. Anybody in the country would have to acknowledge that the retrofitting programme has been a transformation in the past four years. If we did not have the carbon tax, we could not do that and we would not have developed an industry around retrofitting. The industry knows that for the next decade funds will be available to retrofit homes and buildings to make sure we are more energy efficient.

On the lower income and social protection side, it was recommended that we would guard against fuel poverty for people on welfare and on the lowest incomes. Some €262 million has been allocated to other targeted social protection payments this year. Approximately 400,000 low-income households have benefited from our significantly expanded and increased fuel allowance schemes in past winters. My understanding of the report referred to by the Deputy is that its authors felt the breakdown on social protection was not as precise as they would have liked. Nonetheless, there is no doubt that significant funding has been allocated to the fuel poverty area.

Farming is an area close to the Deputy’s heart. This is helping our farmers and farm families directly. In 2024, €113 million in carbon tax funding has been allocated to agri-environmental schemes specifically. In the time ahead, we need to do more for farmers. We need to give further and increased funding to farmers to deal with the issues and challenges they have in respect of the climate change agenda, but also in terms of biodiversity and nature restoration, so there is sufficient incentivisation and revenue streams for the farming community to enable them to address the issues they face. Many in the agriculture industry have engaged more than those in other sectors on this issue. They tend to bring a more detailed approach to the issues at farm level, which has been my experience when I engage with farmers.

There are three pillars to it: the fuel poverty pillar, the retrofitting and energy-efficiency pillar and the agri-environmental pillar. That is where the funding is going from the carbon tax.

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My God, you are a professional spinner and spoofer.

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Sorry?

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You are a professional spinner and spoofer.

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I asked a question about the €530 million that is missing. That is according to the C and AG report, not my report. The Tánaiste quotes the C and AG when he wants to. Deputy Farrell asked questions as well that the Tánaiste did not answer.

I asked a question about the €530 million in carbon tax that has been robbed from the people and that was supposed to go back into retrofitting and the Tánaiste went from this pillar to that pillar to the other pillar. It is a case of around the houses and mind the dresser but he will not answer the question. He goes canvassing every day and gets questions he cannot answer. He can only waffle. This is fact. This is from the Comptroller and Auditor General. Do we give up altogether if we do not accept his reports? We are talking about €530 million out of the €1.36 billion collected from people who are trying to survive, carry out their business and travel to work and the Tánaiste tells us all about what is spent here and there. I asked a question about the €530 million that is missing. Tá sé imithe - like snow off a ditch. It does not matter to the Government anymore. The bike shed is chickenfeed according to this. There is €530 million unaccounted for according to the Comptroller and Auditor General. These are not Mattie McGrath's words so spin your way out of that.

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I commend the Deputy's mastery of alliteration but what he said is not true. The bottom line is-----

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The Comptroller and Auditor General-----

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-----that very significant funding has been allocated to retrofitting.

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The Comptroller and Auditor General.

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Let me take the issue. There is an allocation to social protection that goes into the various schemes to do with fuel poverty and that is very clear in terms of what we have done on the fuel allowance.

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Freagair an cheist.

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I am answering the question. The retrofitting has been an enormous allocation-----

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Where is the missing money?

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-----and has come from the carbon fund. That has also happened in terms of the €113 million in carbon tax funding that has been allocated to agri-environment schemes.

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Where is the €530 million?

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What we could do, and I invite the Deputy to support me in this because he has genuine concerns about where the funding is going, is legislate to ring-fence the funding.

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Ca bhfuil an airgéad?

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I think that would satisfy the Deputy's needs but I wonder whether he would be supportive of that if the next government was to bring in legislation to ring-fence the funding for specific purposes.

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What about the missing money?

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There is no missing money. It is all being spent.

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It is €530 million according to the Comptroller and Auditor General.

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