Motor taxes could be radically overhauled to encourage drivers to buy more environmentally friendly cars under new State plans to cut carbon dioxide emissions, writes Mark Hennessy
Hybrid electric cars such as the Toyota Prius currently enjoy low VRT rates, but the State does not distinguish between conventional cars on the basis of their CO2 production.
"The Government is currently assessing the feasibility of rebalancing vehicle tax even further and also motor tax in line with CO2 emissions as a means of addressing emissions," the Department of the Environment said yesterday in a major policy proposal.
Interested parties have now been given until the end of September before Minister for the Environment Dick Roche prepares a new climate change strategy for the Government.
Ireland's electricity needs will grow by 38 per cent between now and 2020, while oil and natural gas will still be needed to supply 87 per cent of the State's total energy needs by then.
Drivers created nearly 12 million tonnes of CO2 emissions in 2004, dwarfing the production caused by rail and water - while CO2 emissions from all forms of transportation have jumped by 144 per cent since 1990.
The rise is explained by Ireland's economic growth, expanding population as well as "increased housing leading to urban sprawl, increased commuting, larger air passengers numbers through our airports and increased freight movements.
"More people are travelling more often, and there are more vehicles on our roads. People are buying larger private vehicles as disposable income increases, which is offsetting technological fuel efficiency improvements," the document, Ireland's Pathway to Kyoto Compliance, said.
"Emissions in 2004 increased by 6.1 per cent on the previous year, reflecting continuing growth in road traffic. The number of vehicles on our roads grew by 21 per cent between 2000 and 2004 alone," it went on.
The situation is expected to worsen since Irish car numbers should grow further, since ownership here is 80 per cent approximately of the EU average, while existing Irish drivers have some of the world's highest travel figures.
The average Irish car is driven 24,400km per year: 70 per cent higher than in France or Germany, 50 per cent higher than Britain and even 30 per cent higher than in the US.
Though he welcomed publication of the consultation document, Green Party TD, Ciarán Cuffe said it fell short of targets and commitments and was completely short of new ideas.
Fine Gael TD Phil Hogan said the National Consumer Agency should take "a vigorous and aggressive stance" to opposed demands by the ESB for higher electricity prices.
Sinn Féin TD, Seán Crowe said higher energy costs meant the State's fuel allowance must be increased substantially in the Budget. In 1985 it was €6.35. Yet in 2005 it had increased only to €14.