The carbon tax will put our exporters at a disadvantage and make imports more attractive to Irish consumers, according to the Irish Dairy Industries Association. This is so obvious that I can't believe how little conversation the carbon tax has generated.
Now the current low level carbon tax will have an effect, but not a drastic one. However, it also will have essentially zero impact on our emissions so if the logic is to reduce emissions then we must face up to the fact that our carbon tax will have to be a lot more punishing, which will mean that our small, underpopulated island will be able to export fewer and fewer physical goods.
They haven't even started working on airplane costs. Once those are brought into the 'carbon tax' net we'll be in deep trouble. Even manufacturing drugs here might be economically untenable. At the very least, each addition to the carbon tax will require an equal reduction in some other cost, probably wages.
We either find a lot more U2s and Iona Softwares or we're going to get a lot poorer.
