The Government's proposed carbon tax will cost Irish-based technology firms up to €30 million per year and could result in job losses, some of the State's biggest firms warned yesterday, writes Jamie Smyth, Technology Reporter.
ICT Ireland, a lobby group which represents firms such as Microsoft, Oracle and Intel, said the Government should review its plan to introduce a carbon tax.
The proposed tax would undermine the State's competitiveness, increase inflation and have little environmental benefit, according to an ICT Ireland statement.
Irish technology firms already operate at best practice levels with regard to energy efficiency and should be rewarded not penalised, said Mr Brendan Butler, director of ICT Ireland.
"A carbon tax will only succeed in changing behaviour if a company improves its efficiency. However, many Irish-based ICT companies have already reached or are moving towards optimum energy efficiency, because they already operate to best practice."
ICT Ireland said the proposed tax would have very little impact on emissions but would raise very significant revenues for the Government. It said the direct cost of the tax to the technology sector would be up to €30 million if it is introduced at the higher end of the proposed scale.
An increase in energy costs caused by the proposed carbon tax would take place against the backdrop of a 24 per cent rise in energy costs over three years, said ICT Ireland, which has conducted a survey among clients.
This survey found the biggest increase in energy costs, of 40 per cent, occurred at firms in west Dublin. The lowest increase in energy costs was among firms in the west, where they rose 12 per cent.
ICT Ireland warned the proposed carbon tax could force ICT companies to move to countries where less stringent environmental legislation applied. The net result would be a loss of employment to Ireland, with little overall environmental benefit.
"ICT Ireland is vigorously opposed to the introduction of a carbon energy tax which will add costs without delivering environmental benefits," concluded the report.
