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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Carbon tax during fuel crisis

Summary

Peadar Tóibín argues that carbon taxes should be abolished during the fuel crisis, citing record tax receipts. The Taoiseach rejects the proposal, defending carbon-tax-funded fuel poverty supports and agricultural environmental schemes.

The Government announced fuel supports and a reduction in fuel costs for particular sectors. I understand the package amounts to €750 million in total. Let us put that in perspective. A reply to a recent parliamentary question stated that the Government took in €4.3 billion in fuel taxes and €1.2 billion in carbon tax last year. Both of those were the highest amounts ever. The justification the Government uses when it comes to carbon tax is that it ring-fences it and uses it for carbon reduction measures. Of course, like a lot of what the Government says, that is completely untrue. The reply to an Aontú parliamentary question shows that between 2020 and 2023, 39% of all carbon tax collected was not spent on climate action schemes. I am sure the Ceann Comhairle has heard it said a million times in this Chamber and in the media that this money is going to be spent on climate change issues. It is not, in many cases. Some 19% of that money was simply went into the State's coffers and 17% of it was spent on social welfare. A massive proportion of carbon tax is simply a tax by any other name-----

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Verona Murphy An Ceann Comhairle Independent

The Deputy should ask a question.

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-----except poorer people spend more of their income on it than other people.

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Verona Murphy An Ceann Comhairle Independent

Time is up, Deputy. You have not posed a question.

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Will the Taoiseach axe carbon taxes in this fuel crisis?

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The Deputy wants to axe €1.5 billion in revenue, and he has dismissed the social welfare dimension.

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Verona Murphy An Ceann Comhairle Independent

Rhetorically.

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We have all always said that one third of it goes to fuel poverty measures. That is how we have been able to expand the fuel allowance-----

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That is not true either.

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-----and to bring in working families for the first time. An extra 50,000 working families are now entitled to the fuel allowance.

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That is simply not true.

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In the context of the agriculture sector, a significant amount of money goes to farmers under the agri-climate rural environment scheme. That scheme costs about €1.5 billion.

Sixty per cent of that money comes from the Exchequer. The Deputy wants an each-way bet on everything. Is he against the carbon tax revenue going to farmers?

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It is very frustrating. Only 40% is only going through carbon tax.

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Is the Deputy against it going to the poorest households in the country? If he is, he should say so.

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