Simon Harris has defended the carbon tax while insisting the Government will continue to review future increases in light of cost-of-living pressures, saying previous decisions to postpone planned hikes demonstrated “flexibility and common sense.”

Speaking to Gript outside Government Buildings ahead of this week’s Cabinet meeting, the Fine Gael Tánaiste, who also serves as Finance Minister, was questioned about whether sustained high fuel prices are effectively a preview of the Government’s long-term plans, given scheduled carbon tax increases between now and 2030.

The exchange began with a question referencing comments made by former Transport Minister Shane Ross in 2019, when he said the aim of climate policies was to “get people out of private cars” as part of the Government’s emissions strategy.

Asked whether today’s fuel prices reflected where the Government ultimately intended prices to be by the end of the decade, Harris rejected the suggestion.

“No,” he said.

“And the carbon tax is supported by government parties and most of the opposition parties, by the way.

“It’s very interesting, a united opposition doesn’t seem that united at all on the issue of carbon tax. Most of the opposition parties actually support the carbon tax too.”

Harris went on to defend the purpose of the tax, arguing that it helps finance measures designed to support households through the transition to lower emissions.

“It’s there to help people with the transition,” he said.

“It’s there to provide resources that we put into things like fuel allowance, retrofitting, and the transition.

“There’s a legitimate issue around the trajectory, around how we get that right, and the government has reserves the right to consider all of these issues in the round in the budget.”

The Tánaiste also pointed to the Government’s previous decision to defer a scheduled carbon tax increase during the energy crisis following Russia’s invasion of Ukraine.

“It made sense to postpone the increase,” he said.

“I think that showed a flexibility and common sense on government’s part… to increase the carbon tax at a time when there was a war going on and a fossil fuel crisis and an energy shock would have been the wrong thing to do, and we continue to keep this under review.”

Gript then asked whether similar circumstances this winter, should fuel prices remain elevated and energy demand increase, could result in another postponement.

Harris declined to speculate on Budget decisions but said the Government remained focused on supporting households facing higher energy costs.

“So, I’m not going to I’m not going to do the budget now for obvious reasons,” he said.

“But I would point out that when it comes to things like the fuel allowance, we have managed to make sure more people than ever before are qualified for the fuel allowance, and we’ve managed to show and we did even today we’re showing a willingness to help motorists, help people with the cost of diesel, help people with the cost of petrol, and that wanting to help people will remain the approach that we will take.”

He reiterated his support for the carbon tax while saying affordability would remain a consideration.

“I do believe in a carbon tax,” Harris said.

“Some people don’t. I do believe in a carbon tax. I think it is important to help fund the transition, but I also believe in fairness and a bit of common sense, and I do understand that and I do understand the pressures people feel and that’s why I took the decision to suspend the increase.”