Scrapping carbon tax means handing ‘billions of euro to Ursula von der Leyen’

Abolishing carbon tax “would mean we would have to hand over billions of euro to Ursula von der Leyen”, Tánaiste and Minister for Finance Simon Harris has said.The abolition of the tax has been called for as recently as the weekend at a meeting organised by people associated with last April’s fuel protests.Speaking to reporters in advance of the Cabinet meeting, Harris laid out the consequences of scrapping the tax.He said farmers and protesters were sometimes being misled on the issue of carbon tax.READ MORE“I’m not going to stand for it any more. I’ll tell the truth. If you abolish the carbon tax in its entirety what would that mean? It would mean that we would lose our derogation to something called ETS 2.” This is the European Union’s carbon emissions trading system.[ Fuel protesters warn of further action if budget does not slash taxesOpens in new window ]Abolishing the carbon tax “would mean we would have to hand over billions of euro to [European Commission president] Ursula von der Leyen in Europe instead of having a carbon tax here”, Harris continued.He asked if it was the position of those that wanted to abolish carbon tax “that they want an Irish Government to write a cheque to Brussels, or is it their position that they want to have a conversation about how we can have a more sustainable, perhaps a fairer carbon tax”.Harris also said: “In relation to carbon tax is there a flexibility for the Government to do something there if they wish to” but “We need to consider that in the round.”He highlighted how he had met farmers at the National Ploughing Championships who wanted more funding for schemes to support the installation of solar panels and said he was seeking a “balance”. [ Excise cuts on petrol and diesel could be extended ‘into early spring’Opens in new window ]A planned carbon tax increase on home heating oil due to come in last May was deferred until October 14th. The Government is considering the possibility of continuing a lower rate for home heating oil as the budget is finalised. On Tuesday morning Minister for Transport Darragh O’Brien separately would not be drawn on whether planned carbon tax increases on petrol and diesel would kick in the day after the budget – as has happened in recent years – saying: “We’re still in budgetary discussions at the moment.”Earlier Harris said there were “very intense discussions ongoing across Government” on the budget with a “very good and lengthy leaders’ meeting last night”. He said the Government’s work to help with the cost of living “isn’t confined to any one day” and noted that a boiler scrappage scheme was to be discussed by the Cabinet on Tuesday.Harris said lots of people “are trying to take measures already in the here and now to help themselves and their family with their own heating costs too. We’ll endeavour to build on that in the budget next week.”He added that it was “important that the budget is looked at in the round. There isn’t any one lever the Government can pull to alleviate the energy challenges people face but there are a number of things Government can do across tax, across childcare, across direct energy assistance that could make a difference to families.”[ State must hold firm on carbon tax, which helps protect the most vulnerableOpens in new window ]