The Tánaiste, Ms Harney, has held meetings with major companies opposed to the introduction of carbon taxes in the Budget next year, writes Arthur Beesley, Political Reporter.
Ms Harney, who has opposed the tax, has met the companies in the last year after the Government blocked plans to introduce the tax from the start of 2003.
While business groups have expressed alarm at the plans, the tax is strongly supported by the Minister for the Environment, Mr Cullen, who argues that otherwise Ireland cannot meet its requirements under the Kyoto protocol.
Ms Harney's latest meeting with an industrial group about the plans took place a week before Christmas when she met representatives from Wyeth Pharmaceutical.
Records released under the Freedom of Information Act by the Department of Enterprise, Trade and Employment also show that Ms Harney also discussed the issue in the past year with other major groups.
These include CRH, whom she met on January 21st; Aughinish Alumina, September 4th; GE Power Systems, April 16th; Treasury Holdings, February 20th; and the Irish Pharma and Chemical Manufacturers' Federation, September 24th.
Ms Harney's briefing notes from the meetings show that carbon tax was discussed in the context of the National Climate Change Strategy.
As the Government prepares to discuss the implementation of the tax on carbon use from the end of 2004, it has also emerged that IDA Ireland expressed opposition to the plan.
Records from Ms Harney's Department show that IDA Ireland argued in an initial consultation round in late 2002 that the tax was "fundamentally unfair".
"Any instrument such a carbon tax that was introduced quickly would be very damaging in terms of marketing Ireland for foreign direct investment purposes, as there would not be sufficient time to adjust strategy/tactics adequately.
"It would also impact on negotiations with clients that are already in progress," the agency said in a note to Ms Harney's Department.
"The negative impact of a carbon tax would be particularly damaging in the current weak economic climate, poor conditions on the foreign direct investment front, and the loss of competitiveness Ireland has already suffered in recent years due to a rising cost base.
"In fact, the net Exchequer impact of a carbon tax term may not even be positive because of the effect on the corporation tax and income tax bases in the medium term."
Briefing notes prepared for Ms Harney last October show that her Department's response paper to the latest Department of Finance consultation "does not comment on the issue of introducing a tax" but stressed the importance of announcing a definitive starting date for the tax and what rates would apply.
Earlier records make it clear that Ms Harney's Department opposed the original proposal from Mr Cullen's Department, arguing that the tax would undermine competitiveness.
While her Department also said that the tax rate of €20 per tonne of carbon dioxide proposed by Mr Cullen's Department were "excessive", it accepted that the introduction of the tax was Government policy. It proposed an alternative rate of €10 to be phased in over three years starting with €2.5, €5 and €10.
The records released by Ms Harney's Department show that the Department of Agriculture told the Green Tax Group that the original proposal could lead to a 10 per cent increase in energy costs in the agri-food sector.