Fears UK government's climate change policy could drive up costs for Northern Ireland consumers

The DUP has warned that new rules on carbon emissions from boats and ferries could effectively introduce a new tax on trade between Great Britain and Northern Ireland – pushing up costs for consumers.

The government is pressing ahead with its latest net zero policy, which would include greenhouse gas emissions from “domestic maritime activities”.

placeholder image — Ferries coming in and out of NI's ports from GB will be affected by new climate legislation. Photo. Photo: Liam McBurney/PA Wire

There is a special exemption for Scottish ferry services – but the government argues that providing the same exemption for GB – NI ferry routes would result in a “higher effective carbon price” on that route compared to GB to Republic of Ireland routes.

The DUP has hit out at the proposals, warning about increased costs for consumers.

DUP deputy leader Michelle McIlveen said the proposal could effectively operate as a tax on trade across the Irish Sea and criticised Assembly parties for backing the measure despite concerns about its economic impact. “Northern Ireland is uniquely dependent on maritime transport, with around 90% of our goods moving by sea. Any increase in ferry operating costs inevitably flows through the entire supply chain - from manufacturers and agri-food producers to supermarkets and ultimately household budgets.

“Estimates suggest this scheme could add around £15 per trailer to freight costs. That will not be absorbed by shipping companies, it will be passed on through higher prices for businesses and consumers.

“That is why the DUP opposed this proposal. At a time when families are already facing rising fuel and heating costs, it is reckless that Sinn Fein, the SDLP and Alliance were prepared to support a policy that risks driving costs even higher”.

TUV leader Jim Allister said last month that the new regulations place “both costly new bureaucratic demands and a new carbon tax” on the ferries that link Great Britain and Northern Ireland.

The North Antrim MP said: “What makes these regulations particularly controversial is that no one can claim they serve an environmental purpose because there are not yet any viable alternative fuels that the ships can use to reduce their emissions. In this context these regulations constitute just another act of national self-harm from Labour and yet… such is their concern about the cost of living, that both the Alliance Party and SDLP have voted for them”.