ENVIRONMENTAL TAXES

MICHAEL SMITH,

MICHAEL SMITH,

Sir, - Congratulations to Dublin's City Council and Transportation Office for effecting a reported reduction of 6,000 in the number of cars crossing its canal ring during the morning peak (April 23rd). Such a reduction will result in a tangible improvement in the quality of life for Dubliners. The next phase in traffic control must be the sort of pricing measures that we are seeing in London, promoted by its progressive mayor, Ken Livingstone.

An Taisce supports environmental pricing generally. In this respect Environment Minister Noel Dempsey deserves credit for finally introducing his tax on plastic bags. It's a pity the Department of Finance has continually vetoed other plans from Mr Dempsey for environmental taxes.

Environmental taxation is a good idea because it is predicated on the simple principle that you tax bad things (pollution and environmental degradation including that caused by congestion) not good things (labour or even capital). Despite the Department of Finance's reactionary reservations it need not be detrimental to international competitiveness, socially regressive or inflationary. If implemented properly, environmental taxation would be fiscally neutral (i.e. would not increase the overall tax burden) but would increase employment. This is why authoritative commentators like the OECD and ESRI have lent it support. It's extraordinary really that neither Charlie McCreevy nor any of the main opposition parties seem to have given it thought. - Yours etc.,

READ MORE

MICHAEL SMITH, Chairman, An Taisce, Dublin.