Adoption of environmental ideas will grow the economy and create secure employment, according to a pre-budget submission by The Environmental Pillar of Social Partnership which was launched today."Secure employment will depend on the government addressing global trends in climate change, energy, biodiversity loss, and food security when planning for the next four years," said Michael Ewing, coordinator of the Environmental Pillar, at the launch of their submission document "Proposals for a sustainable Budget 2011".
The submission lists the changes in decision-making needed to increase sustainability, and suggests measures in taxation and spending that will stimulate employment.
"In general what is needed is a shift from taxes on income and profits to tax on consumption of natural resources" Ewing explained. "Where taxes are applied they must be progressive and just. Any new taxation should not be based on cyclical sectors of the economy that leave the exchequer vulnerable."
Siobhán Egan, Environmental Pillar representative to the European Economic and Social Committee (EESC), said "getting the management of natural resources right is key to an economy that is environmentally sound and that supports employment and quality of life into the future. Making the right decisions now about how we exploit resources for energy and food for example can save money and create jobs but we need to ensure we don't repeat mistakes of the past."
The Environmental Pillar's position on tax is shared by the OECD, which recommends the phasing out of all environmentally harmful subsidies, and "the replacement of some current taxes with appropriate environmentally related fiscal measures in the framework of a comprehensive environmental tax reform."
The Environmental Pillar claims that innovation in taxation will promote and support the industries necessary for a shift to sustainability. One mechanism it proposes is 'Tax and Share', which rewards those that use the least carbon. It is tax neutral, largely beneficial in promoting public transport use, and as there are only a small number of energy importers, it is easy to administer.
Land Value Tax is highlighted as being a key measure "essential to the long-term wellbeing and control of land usage". It is claimed it would incentivise improved use of land to generate income, deter land hoarding, and bring about the rejuvenation of derelict buildings and so-called Brownfield sites in towns. For the government it would generate a revenue stream that is fair, transparent and reliable.
According to the Pillar, wherever possible, obstacles to the generation of employment should be removed. Taxation on paid work should be shifted to taxes on resource use and pollution. For this reason, it argues, the successful 'polluter pays' principle should be expanded greatly to include products that cannot be fully and easily recycled, pollutants emitted from industrial facilities, and excessive product packaging. These revenues, and others from taxes on resource use and pollution, should be ring-fenced for activities and employment opportunities that protect and enhance the environment, in the same way that the plastic bag tax and the land fill levies are at present in the Environment Fund.
"This submission shows that taxation can be used to incentivise employment opportunities and activities that build resilience against the impending shocks caused by global trends in climate change, competition for cheap energy, and increasing food security needs," concluded Mr Ewing.
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