Sinn Féin's spokesperson on Climate Action and the Environment, Darren O'Rourke TD, has criticised the government for failing to explain how nearly 40% of the carbon tax increases collected between 2020 and 2023 were allocated.

Commenting on the recently released annual report of the Comptroller and Auditor General (C&AG), the Meath East TD said: "The C&AG says that between 2020 and 2023, €1.36bn in revenue from increases in carbon tax rates was allocated by the Department of Public Expenditure to specified expenditure programmes across five departments.

"This is in line with the year-on-year increases pushed through by government, despite the opposition of Sinn Féin and others. However, it is very clear now that the commitment to use these carbon tax increases to fund and deliver retrofitting, social protection and agriculture programmes has not happened.

"In fact, incredibly, the C&AG’s report noted that just 61% of the sum allocated could be verified as having been spent on the target schemes and programmes.

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"This is absolutely incredible. It adds insult to injury and exposes the spin from government.

"Again and again and again, Fianna Fáil, Fine Gael and the Greens have defended their punitive carbon tax increases by saying the funding was essential for the delivery of climate action programmes, in particular the National Retrofit Plan.

"This is despite the fact that year after year, including this year, Sinn Féin have shown how to invest more in climate action measures without increasing carbon tax. Instead, we take a fairer, more progressive approach by implementing environmental levies on excessive consumption and wealth, as well through the introduction of new taxes on capital.

"The government's argument is now exposed as completely baseless. This comes as no surprise to me at all.

"The lack of financial oversight is equally shocking.

"The report indicates that, due to underspends in different departments, funds were returned to the Department of Social Protection and the Department of Public Expenditure.

"Of the 17% of funds which were given to the Department of Social Protection, for example, auditors noted that the payments were “not recorded in specific ‘carbon tax funding’ subheads” and it was not “possible to confirm” independently if they were spent correctly.

"Separately, the report noted that no central tracking system currently exists within the Department of Public Expenditure for carbon tax receipts. This means there is no way to determine if all carbon tax receipts are allocated to targeted areas.

"Despite all of these well-flagged issues, the government had absolutely no reservation about increasing the carbon tax yet again in yesterday’s budget adding to the enormous burden on already-struggling workers and families. Meanwhile, the wealthiest get off scot-free.

"In Sinn Féin, we have been steadfast in our opposition to this approach by government. Our position has been vindicated yet again."