Calls for carbon tax hike cash to help elderly

Age Action Ireland has called on the Government to divert the extra money it will get from this Thursday’s hike in tax on solid fuels to protect vulnerable pensioners.

On May 1, the second phase of the solid fuel carbon tax will add €1.20 to the price of a bag of coal and 24c to a bale of briquettes.

Statistics show the increases will have a much greater impact on elderly people living alone in rural communities.

Age Action Ireland’s head of advocacy Eamonn Timmins said that, originally, the carbon tax was supposed to be ringfenced to fund insulation programmes but this had not happened.

Mr Timmins said this had become a life and death issue because, each year, mortality rates among the elderly spiked by up to 2,000 fatalities during the winter months.

He said, typically, people do not die from hypothermia but fall victim to cold-related conditions such as cardiac arrest.

“The Government needs to address this issue because the same people that will suffer because of the increased price of solid fuel are more vulnerable during the winter,” he said.

Mr Timmins said that the extra money that will be raised this year should be directed to increase the means-test fuel allowance and fund better insulation schemes.

According to the most recent census, there are more than 200,000 people living in the country who rely on either coal or peat to heat their home.

However, this group contains a disproportionate amount of elderly people.

In 2011, there were 11,709 people over the age of 65 who were living alone and relying on coal. Another 15,944 people were in the same situation but used peat.

Last week, Finance Minister Michael Noonan ruled out deferring the tax in order to deal with concerns about the impact it would have on the trade in some sectors.

He said that, between May 1 and December 31 last year, the charge had raised €1.3m more than expected.

“It should be noted that the provisional yield returned for solid fuel carbon tax from 1st May 2013 to 31 December 2013 was €7.3m, ahead of the forecast yield for that period of €6m,” said Mr Noonan. “Accordingly, I do not intend to defer the further increase of €10 per tonne of CO2 emissions from 1 May 2014.”

Phase one of the carbon tax on solid fuels was introduced on May 1, 2013, and added €1.20 to the price of a bag of coal. This will be doubled on Thursday with the implementation of the second phase.

Particular concern about the changes has been raised about the impact the additional increase could have on traders in the border counties.

The Solid Trade Fuel Group, which represents distributors, raised concerns with politicians that the lack of similar tariffs in the North encouraged people to move their business across the border.