[Article] Carbon tax is scrapped after fuel discovery

Victor

They have, of course, known about this for years and have been royally screwing hte British exchequer.

http://www.sbpost.ie/web/DocumentView/did-510859819-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp

Carbon tax is scrapped after fuel discovery
12/09/04 00:00
By Paul T Colgan

The government's decision to abandon the proposed carbon tax was influenced by the discovery that almost 20 per cent of the fuel bought in the state is not used here.

Minister for Finance Charlie McCreevy pledged to target carbon dioxide emissions with extra excise duties on fuels.

The tax was intended to bring greenhouse gas emissions into line with the limits set out in the Kyoto Protocol.

However, following an extensive consultation process, McCreevy has decided to scrap the tax on the basis that the environmental benefits would not justify the resulting difficulties, particularly for households.

More than 670,000 tonnes of fuel leaves the state every year, according to research by Goodbody Economic Consultants.

Estimates of carbon dioxide emissions carried out by the Environmental Protection Agency (EPA) wrongly included fuel which leaked into the North either through cross-border sales or smuggling, the research said.

The report indicated that initial estimates of the damage caused to the environment by Irish fuel sales were greatly overstated.

``As total recorded consumption of road fuels was about 3.5 million tonnes in 2003, this means that as much as 19 per cent of recorded fuel consumption comprises cross-border movements,'' said the report. ``Government policy in relation to road vehicles and the environment can no longer ignore this fact, if it is to retain credibility.''

The lowest proposed tax rate of €7.50 per tonne would probably have added 2.8 cent to the cost of a litre of petrol or diesel.

The haulage industry has welcomed the government decision with the Irish Road Haulage Association saying it was a ``victory for common sense''.