Irland’s Carbon Tax In Doubt As Parties Squabble

Fianna Fáil has warned it will not support any carbon tax increases in the budget unless the money raised is reinvested in affected communities and measures to help the poorest.

Negotiations were continuing overnight on finalising a report for the Oireachtas All-Party Climate Action Committee, with the level of carbon taxes a stumbling block.

Barry Cowen, the party’s public expenditure spokesman, said his party would not agree to any increase in the tax unless it was allocated to fund plans to help areas that may rely on fossil fuel-related employment, as well as those at risk of fuel poverty.

The next budget, if one is passed, is likely to be the last before a general election…

Party sources said Fianna Fáil was in favour of the target to have increased carbon taxes from their current level of €20 per tonne to €80 per tonne by 2030, as recommended by the Government’s Climate Change Advisory Council.

However, the view at its frontbench this week was that this target – and specified annual increases – should not be set down in legislation.