Michael Fitzmaurice: Cut Carbon Tax on Green Diesel Now
Michael Fitzmaurice challenges the government's approach to carbon taxation and its impact on green diesel, construction costs and home heating. He argues the EU requires ETS participation but does not mandate a national carbon tax, and urges temporary relief.
EU law and carbon pricing
Michael Fitzmaurice says the mandatory EU mechanism is the Emissions Trading System (ETS) for power plants, industry and aviation, but that a national carbon tax is optional. He disputes government claims that EU law prevents reductions to the carbon tax and asks for evidence to the contrary.
Cost pressures on construction and households
Fitzmaurice highlights concrete examples from builders and groundworks contractors: rising green diesel prices, higher costs for diggers and generators, and suppliers increasing prices for tar, concrete and other materials. He warns these added costs are driving up house prices and forcing some builders to reconsider projects.
A call for temporary relief
While welcoming reductions in other levies and lower prices for white diesel and petrol, Fitzmaurice says green diesel has been left behind. He urges the government to consider short-term reductions in the carbon tax or targeted relief for home heating, agriculture and construction to give families and businesses breathing space.
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The first thing is, look it, an e-reduction is welcome. In the line of NORA, it's hard, I was looking for figures, there's supposed to be 2 to 3 billion paid into it since I think 2007 or 8. My understanding is that the oil reserves are not just in Ireland, but we have a deal done with someone else. I think it needs more explanation, to be quite frank about it, the whole NORA set up. But look it, the levy going is a good thing, but we saw yesterday, and we welcome the reduction in the price of fuel for the white diesel and the petrol, but the green diesel has been totally left behind. And I remember myself and Deputy Collins and a few more who was going into government talks today, we went in and we brought up about the carbon tax and they said, no, can't be touched, that's from Europe and that's it. And I have got information from Europe, what is mandatory to all EU member states, must participate in EU emissions trading system, that's ETS. This is an EU wide system that puts a price in carbon for power plants, heavy industry and aviation. Now, you all decided not to go near the aviation, but we'll tax the person that's driving up and down the country. Works at that market, cap and trade, not a fixed tax. So every country, every EU country must price carbon in these sectors. Now, this is the only compulsory carbon pricing mechanism at the EU. What is not mandatory is a national carbon tax. It is actually optional. And when you look at the different countries in Europe, you look at Sweden, it's very high. You look at Germany, has basically nothing. And the government has constantly said we have to do this because it's EU law. There is no law to state that you cannot reduce the carbon tax. And I will ask for anyone that can prove me information contrary to that. We have been led to believe that this was all EU. When we can bring in legislation today to get rid of basically the NORA levy, there is no reason why for the home heating sector and for the agricultural and the building sector. Because bear in mind, I spoke to a builder this morning or a ground works contractor this morning here in Dublin. Every month, 240,000 is costing them more in diesel now compared with the month ago. Is that sustainable? What's that going to do up with the price of a house? Every one of the main suppliers has sent out stuff in the line of tar, in the line of concrete, in the line of all the materials, up it's going. There is house builders at the moment deciding do they need to pull back at the moment. That's the facts. And if you want me to verify it to you, I'll verify it. That's the facts of what's going on. Because green diesel, if you go to a site, 120 euro a day for the digger. That's the extra you're paying at the moment. Multiply that by all the plants that's on the site. Even a generator on the site is on green diesel. Then, when you're finished with that, you have to go to the quarry and bring stone. The crusher, the loading shovel, every part of the quarry, bare the lorry that's on the road, is going to be on green diesel. That's the facts. And we cannot see that we're driving the price of houses up because we're leaving the price of diesel, of green diesel, at what it's at. And then the excuse was used about carbon tax, we cannot stir it. And I have looked for the full breakdown of the carbon tax because what has been said, and it needs to be put on the record, agriculture, yes, agriculture gets some. But the facts are, they talk about environmental schemes, go to AOS, go to REPS. There was more money given when there was no carbon tax under environmental schemes, or as much as there is now. Those are the facts on that. In relation to, we heard about basically insulating houses and doing all that, and yeah, everyone agrees with that. But have a look at the figure, and have a look at what was spent. But then, that's 450 to 500 million, but we're taking in 1.1 or 1.2 billion. Everything else, we paid for it all down through the years before it. But in my opinion, this is another tax like the USC, what has been brought in. And at a time, I'm not saying they just scrap it for good. But what I'm asking is, at least when people are under pressure, that it's dropped for a few months to try and give them the breathing space. Green diesel today is 161. I got the prices earlier. Kerosene is up there as well. That was being bought in 96, 98 cent, including VET. That's the facts. So, I think the government needs to have a real look at this. Thank you.
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