Financial Resolutions. - Resolution No. 3—Customs and Excise—Hydrocarbon Oil. – Dáil Éireann (13th Dáil) – Tuesday, 4 May 1948

Financial Resolutions. - Resolution No. 3—Customs and Excise—Hydrocarbon Oil.

Mr. McGilligan

I move:—

(1) That the duty of customs imposed by Section 21 of the Finance Act, 1935 (No. 28 of 1935), shall, in respect of hydrocarbon oil, chargeable with that duty, be charged, levied and paid, as on and from the 5th day of May, 1948, at the rate of one shilling and two pence the gallon in lieu of the rate now chargeable by virtue of sub-section (1) of Section 11 of the Finance Act, 1946 (No. 15 of 1946).

(2) That the rebate allowable under sub-section (2) of Section 21 of the Finance Act, 1935, shall, in respect of hydrocarbon oil on which such rebate is allowable, be allowed, as on and from the 5th day of May, 1948, at the rate of one shilling and two pence the gallon in lieu of the rate now allowable by virtue of sub-section (2) of Section 11 of the Finance Act, 1946.

(3) That the duty of excise imposed by Section 21 of the Finance Act, 1935, shall, in respect of hydrocarbon oil chargeable with that duty, which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 5th day of May, 1948, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied and paid at the rate of one shilling the gallon in lieu of the rate now chargeable by virtue of sub-section (3) of Section 11 of the Finance Act, 1946.

(4) That the rebate allowable under sub-section (4) of Section 21 of the Finance Act, 1935, shall, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in paragraph (3) of this Resolution was paid at the rate of one shilling the gallon, be allowed at the rate of one shilling the gallon in lieu of the rate now allowable by virtue of sub-section (4) of Section 11 of the Finance Act, 1946.

(5) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

This Resolution imposes a duty on certain oils other than light hydrocarbon oils—fuel oil, Diesel oil, gas oil, paraffin oil and turpentine. In effect, it is only chargeable on such oils as are used for propelling motor vehicles of the heavy type.

Mr. Lemass

Then this is a tax on the fuel of motor omnibuses?

Mr. McGilligan

It brings in £10,000 for every penny.

Mr. Lemass

To that extent, it will involve an increase in omnibus fares.

Mr. McGilligan

I do not think it should involve any increase. The whole tax amounts only to £50,000.

Mr. Lemass

Nevertheless it is £50,000 which has to be paid by the omnibus services.

Mr. McGilligan

I do not see any reason for any increase in fares.

Mr. Lemass

It will not involve any increase?

Mr. McGilligan

In any event the services to which the Deputy referred are not making ends meet at the moment.

Mr. Lemass

This will be an added argument in favour of increased fares.

Mr. McGilligan

I hope to resist any such argument.

Mr. Lemass

Is it worth while imposing a tax which will raise only £50,000 and which may be the argument that will decide the granting of an increase in omnibus fares which will be a considerable hardship on many workers?

Mr. McGilligan

As far as the public companies are concerned, they may have to share with others in meeting that £50,000, that is to say, other companies and other motor car users, people who are most in competition with the public services are going to have to contribute to this tax. That is, they will have to meet something in the neighbourhood of £860,000. The element of competition is surely lessened by the tax that the private car users and everybody else have to pay.

Mr. Lemass

I am not concerned about the people with private cars.

Mr. McGilligan

I am concerned with the public companies who are mainly complaining that their business has been dropping because of the competition of the private car users, private hauliers, etc. These people will have to meet a far bigger tax than the public companies. Therefore, the public companies are getting rid of an element of competition which they say is very serious against them.