Minister for Finance Brian Lenihan’s speech is available to read here, or to watch here.
The Government’s summary of the measures announced in the Budget is available here.
Homeowners and motorists will see hikes in oil, gas and fuel costs after the Government announced a €15 per-tonne tax on carbon-polluters.
Petrol and diesel prices will jump around 4 cent from midnight while charges for home heating fuels will rise from between 6% and 11% by the end of next year.
Environment Minister John Gormley said the levy will raise €250m in 2010 and will be used to fund the cut in VAT, slash PRSI for businesses, and help boost energy efficiency in homes.
But green campaigners said the charge was not enough to wean society off carbon fuels.
Mr Gormley said: “First thing there will be money that is ring-fenced for fuel poverty and for retrofitting houses, but also the amount of money it’ll take in is enabling key measures to be introduced.
“It will lower the tax take in other parts of the economy and make us more competitive.
“The Carbon Tax enables us in Government to reduce employers’ PRSI in certain areas and it also enables us to reduce the VAT rate. Without the carbon levy money we couldn’t do that.”
Finance Minister Brian Lenihan said it was necessary to change behaviour and urge people to become more eco-friendly.
The senior Fianna Fail TD said the cash raised from the levy will help boost energy efficiency in people’s homes, support rural transport and wipe-out fuel poverty.
Some €130m will go towards the home insulation scheme.
“Carbon taxes will be a feature of economies across the world in the coming years,” Mr Lenihan said.
“Today’s announcement sends a positive signal to those gathered in Copenhagen, working for an ambitious agreement on global climate change, about Ireland’s capacity to show leadership.”
From midnight petrol will jump 4.2 cent from €1.177 per litre while diesel will go up by 4.9 cent from €1.067.
In May the price of oil will jump 8.7% and gas 6%, while by the autumn of 2010 coal will be up 11% and peat briquettes 10%.
Mr Lenihan said a vouched fuel allowance scheme will be introduced to help low-income families.
Friends of the Earth welcomed the move but said the tax fell far short of what was needed to reflect the damage from carbon pollution.
Oisin Coghlan, director, said: “There must be absolute transparency in how the revenue is used in order to re-assure people that the revenue is used to reduce other taxes or ring-fenced to finance the transition to a low-carbon economy and society.”
“€15 a tonne is far lower than is necessary to drive the transition to a low-carbon future.
“The tax will need to increase year-on-year until it fully reflects the damage carbon pollution does.”
Mr Coughlan said the tax should rise as high as €100, but added the measures to ensure the levy is fair should be increased.
The environmental body also hit out at the €1,500 car scrappage scheme for vehicles over 10 years old, claiming it was a waste of money and will not have a significant effect on emissions.
© Examiner Publications (Cork) Limited, City Quarter, Lapps Quay, Cork. Registered in Ireland: 73385.
