Some of the biggest companies in the State have mounted a vigorous lobbying campaign against the Government's plans to introduce a carbon tax.
Records released under the Freedom of Information Act show major groups such as Intel, Dell, CRH, Aughinish Alumina and Irish Sugar have written to the Minister for the Environment, Mr Cullen, expressing alarm at the plans.
Among the biggest employers in the State, the companies have argued the imposition of a carbon tax would put jobs at risk and jeopardise the future of their business. The letters were copied to the Taoiseach's programme manager, Mr Gerry Hickey.
The records also indicate opposition to the plans within Fianna Fáil, with the Co Limerick TD, Mr John Cregan, writing to the Minister for Finance, Mr McCreevy, to highlight the concerns of local employer Aughinish Alumina.
As the Government initiates a consultation process this week on the introduction of a general carbon tax next January, the correspondence released to The Irish Times shows that industry had already started its campaign against the initiative last year. Many of the companies used the same phraseology in their arguments against the tax.
Some of the companies wrote to the Government in the weeks before Mr McCreevy said in his Budget speech that the tax would be imposed from the start of 2004. But while the companies said carbon tax would have a serious detrimental impact on the Irish economy, other records show that the Economic and Social Research Institute (ESRI) challenged such views.
In a note to Mr Cullen's Department last September, Prof John Fitz Gerald, of the ESRI, wrote: "It seems unlikely that the suggested policy change would have a major impact on competitiveness. In particular, if phased in over a number of years the effects would be very small in any individual year."
While stating that his remarks were based on only a provisional study, he added that the size of the change in business costs would be "dwarfed" by changes in other costs such as wages.
The computer-chip maker Intel, the State's biggest industrial investor, wrote last November that there was no environmental rationale to the tax.
The general manager of its Irish division, Mr Jim O'Hara, wrote: "Intel Ireland is fundamentally opposed to the introduction of energy taxes on industry."
He added: "In a business environment, which is very difficult and where every cent of cost is scrutinised, an additional tax burden would be most unwelcome and would only serve to exacerbate an already difficult situation and drive hard-won investment and employment away from Ireland."
The vice-president of marketing at the computer group Dell, Mr Nicky Hartery, said last December that the company's annual energy bill was €2.19 million. Pointing out that the company had 4,700 staff in Ireland, he added: "Any further increases in the form of national energy taxes simply cannot be absorbed (and have the potential to impact on our employee numbers)."
The managing director of the building materials firm CRH Ireland, Mr Anthony O'Loghlen, said increases in energy costs generally were unsustainable.
"We are equally concerned at proposals concerning greenhouse gas taxation and the forthcoming EU legislation on CO2 emissions," he said.
In a letter written in November, the then managing director of Aughinish Alumina, Mr Michael Collins, said that a tax of €7.50 per tonne of CO2, would have disastrous consequences for the company and could result in closure of its operation.
The chief executive of Irish Sugar, Mr Sean Brady, said there was no rationale to levy energy taxes, arguing that they "simply cannot be absorbed without seriously impacting the competitiveness of our industry".
While Mr Cullen sought the views of other Government Departments on the proposals to levy the tax, his Department refused to release submissions from the Department of Enterprise, Trade and Employment and the Department of Communications, Marine and Natural Resources.
