THE Government will support a shift in the tax burden away from income taxes and PRSI towards taxing polluters, according to the National Strategy for Sustainable Development.
"While some environmental charges and taxes are in place in Ireland which lean on polluters and users of resources, use of these instruments is not yet widespread," the document concedes. But it promises a range of green taxation" measures, starting with the 1998 Budget.
Road tax, for example, will be "aligned more closely to the objective of reducing carbon dioxide emissions from vehicles". Consideration will also be given to tax incentives to favour more efficient and less polluting vehicles, even ahead of EU deadlines.
The use of leaded petrol is to be phased out by 2000. Vehicle testing will be extended to all cars over four years old from January 1st next, and particular emphasis will be placed on adequate emission controls to reduce pollution.
The effects of the scrappage scheme for cars are to be monitored to ensure that it meets the objective of improving the age profile and efficiency of the vehicle fleet, without creating other environmental problems.
The Government says it supports the general approach of the EU White Paper on Growth, Competitiveness and Employment, which advocates a shift in the tax burden away from labour and towards polluters and others who consume energy and natural resources.
Such a shift would provide a means of implementing the "polluter pays" principle as well as underpinning the internalisation of environmental costs. It will also redress the balance by giving more support to labour intensive, non-polluting industries.
Though the strategy says that "high planning and environmental standards will remain a precondition for development", it also makes clear that the Government is committed to introducing "accelerated procedures for major projects involving significant employment".
This was one of the commitments made in Partnership 2000, the latest deal between the Government, employers, trade unions and farmers. It referred to "the need to consider further streamlining of the planning system to minimise delays and uncertainties".
According to official sources, this was intended to deal with "urgent cases" where the IDA might have signed up a multinational company which, because of problems in obtaining planning permission for its plant, might threaten to locate elsewhere.
Though the "fast track planning" proposal is not elaborated in detail, the sources stressed that if there was to be "pre-designation" of industrial sites so that they could be offered to investors as ready to go", it would be subject to a process of public consultation.
"We are not abandoning the idea of having a proper assessment of whether sites are suitable for industrial development," he explained. Also, companies with a pollution potential would still have to get a licence from the Environmental Protection Agency.
Grant assistance for industrial development will remain conditional on compliance with environmental regulatory requirements, and future targeting of grants for small and medium sized enterprises would be geared towards the use of cleaner production methods.