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The Automobile Association is calling on the Government to tread lightly when it comes to adjusting or increasing either the 'carbon tax', duty on diesel, or both. With the Budget looming, the AA is concerned that any rise in taxes could unfairly disadvantage rural commuters, who have few alternatives to private car use.
"The government certainly has a challenge on its hands if we are to meet our climate change obligations." said the AA's Director of Consumer Affairs Conor Faughnan. "But you do not help that problem in the slightest just by pushing up the cost of living. The existing carbon taxes on fossil fuels are simply a politically correct name applied to an old-fashioned cash grab.
"Simply increasing the taxes associated with driving isn't going to change anything but will only act to punish those who are forced to rely on the car to commute to work. This particularly affects rural Ireland or areas less frequently served by public transport." said Faughnan. "As a nation we absolutely need to reduce reliance on the private car, particularly in our cities. You don't achieve that but taking money out of the pockets of individuals who have no choice. The workplace won't get any closer to the home if more tax is added.
"We would much rather hear about increased investment in public transport, additional incentives to encourage electric car use, provision of cycling facilities, tax breaks for employers to green their commuting needs. These are genuine environmental measures. Grabbing money is not."
Separately, Faughnan said that the nine per cent VAT rate on hotel and hospitality prices should also remain unchanged, as it's a key driver of the leisure economy. "It does feel as if the AA's customers are the ones in the firing line across all of our lines of business." Says Faughnan. "We serve motorists, we provide insurance and emergency call-out to householders and we are the original Hotel grading organisation so we deal extensively with hoteliers as well. All of those groups are rumoured to be hit next week. The AA believes the nine per cent VAT rate for hospitality services should be retained.
"You don't drop a measure just because you can prove it is working." Says Faughnan. "It is in line with European norms, it affects our competitiveness and it is helping to create thousands of jobs."