Dáil Éireann debate -
Tuesday, 23 Apr 1968

Vol. 234 No. 1

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

Minister for Finance (Mr. Haughey)

I move:

(1) That in this Resolution—

"the Act of 1935" means the Finance Act, 1935 (No. 28 of 1935);

"the Act of 1966" means the Finance Act, 1966 (No. 17 of 1966).

(2) That the duty of customs imposed by section 1 of the Finance (Customs Duties) (No. 4) Act, 1931 (No. 43 of 1931), as amended by subsequent enactments, shall, in respect of mineral hydrocarbon light oil chargeable with that duty, be charged, levied and paid as on and from the 24th day of April, 1968, at the rate of 3s. 11.9d. the gallon in lieu of the rate specified in section 10 (2) (b) of the Act of 1966.

(3) That the duty of excise imposed by section 1 of the Finance (Miscellaneous Provisions) Act, 1935 (No. 7 of 1935), as amended by subsequent enactments, shall, in respect of mineral hydrocarbon light 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 24th day of April, 1968, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of 3s. 10.9d. the gallon in lieu of the rate specified in section 10 (3) (b) of the Act of 1966.

(4) That the duty of customs imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty, be charged, levied and paid as on and from the 24th day of April, 1968, at the rate of 3s. 4.65d. the gallon in lieu of the rate specified in section 10 (4) (b) of the Act of 1966.

(5) That as on and from the 24th day of April, 1968, the rate of any rebate allowed under section 21 (2) of the Act of 1935 shall—

(a) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in paragraph (4) of this Resolution was paid at the rate of 3s. 4.65d. the gallon, be 3s. 4.65d. the gallon, and

(b) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in paragraph (4) of this Resolution was, by virtue of paragraph 6 of the Imposition of Duties (No. 84) (Hydrocarbon Oils) (Customs Duties) Order, 1959 (S.I. No. 219 of 1959) paid at the rate of 3s. 3.65d. the gallon, be 3s. 3.65d. the gallon,

in lieu of the rate allowable immediately before the 24th day of April, 1968, by virtue of section 10 (5) (b) of the Act of 1966.

(6) That the duty of excise imposed by section 21 of the Act of 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 24th day of April, 1968, or is used by such manufacturer on or after that date for any purpose other than the manufacture of production of hydrocarbon oil, be charged, levied and paid at the rate of 3s. 3.65d. the gallon in lieu of the rate specified in section 10 (6) (b) of the Act of 1966.

(7) That as on and from the 24th day of April, 1968, the rate of any rebate allowed under section 21 (4) of the Act of 1935, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in paragraph (6) of this Resolution was paid at the rate of 3s. 3.65d. the gallon, shall be 3s. 3.65d. the gallon in lieu of the rate allowable immediately before the 24th day of April, 1968, by virtue of section 10 (7) (b) of the Act of 1966.

(8) That as on and from the 24th day of April, 1968, the rate of any repayment allowed under section 10 (8) of the Finance Act, 1957 (No. 20 of 1957), in respect of hydrocarbon oil on which such repayment is allowable and on which either—

(a) the excise duty mentioned in paragraph (6) of this Resolution was paid at the rate of 3s. 3.65d. the gallon, or

(b) the customs duty mentioned in paragraph (4) of this Resolution was paid at the rate of 3s. 3.65d. the gallon or 3s. 4.65d. the gallon,

shall be 1s. 8d. the gallon in lieu of the rate allowable immediately before the 24th day of April, 1968.

(9) 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).

Mr. M.P. Murphy

Would the Minister tell us what is now the duty on a gallon of petrol, to put it in simple terms?

Mr. Cosgrave

Twopence a gallon.

Mr. Sweetman

He wants the total tax: 3s 4.65d.

Mr. Haughey

What happens in this regard is that a blanket duty is put on all hydrocarbon oils. Those used in specified categories get a full rebate. Those used in buses get a rebate also, but not the full rebate.

Mr. S. Collins

What tax does the motor car driver pay on a gallon of petrol?

Mr. Haughey

3s 10.9d.

Mr. Sweetman

That is imported: it says in subsection (4), 3s 4.65d.

Mr. Haughey

Home refined petrol is 3s 10.9d per gallon. There is a difference of 1d per gallon in favour of the home product.

Mr. Sweetman

What is the 3s 4.65d?

Mr. Haughey

That is the rate of duty on diesel oil.

Mr. James Tully

The Minister is aware that this is bound to increase costs. There are certain excepted cases, but it will in general increase costs and increase them substantially. I notice that the Minister said he was giving tax reliefs in other cases, but he made no reference whatsoever to a category which has been referred to in this House by myself and a number of other Deputies over a long period, that is, the man who uses a motor vehicle to go to work and if he does not use that vehicle he is on the labour exchange. This man will have to pay 2d extra the same as everybody else, and the Minister made no effort at all to give him any relief, say, by way of earned income allowance. I think that is wrong and something should have been done. I do not wish to transgress the rules of order, a Leas-Cheann Comhairle, but the Minister should have done something to improve the position of that type of person who is caught now. Instead of having his position improved he is now stuck for an extra a gallon. Some of the old jalopies which such people have will not do more than 15 or 20 miles per gallon.

Mr. Haughey

I know that this is a particular problem in Deputy Tully's constituency of Meath where three or four men come in together to Dublin to work.

Mr. James Tully

Yes.

Mr. Haughey

Since Deputy Tully raised this matter, I have been giving a great deal of thought to it to see what can be done. On this question of costs, there is a possibility—I do not want to put it any further—that this full 2d may not come on to the motoring public. There is a possibility of some of it coming back at a later date.

Mr. James Tully

Instead of a tiger.

Mr. Cosgrave

This also affects commercial travellers and so on?

Mr. T.F. O'Higgins

The yield which the Minister expects is £1.2 million, which is a lot of money. Our view on this is clear. We are sensitive in relation to anything that is likely to affect living costs, particularly at this moment. There is a grave danger if we, by any taxation, increase the cost of living and so affect our economic prospects for the year ahead. We feel this is bound to have its effect. Twopence a gallon on petrol is bound to affect distributive costs, bound to affect people in a variety of ways, as Deputy Tully mentioned. I hope what the Minister mentioned may transpire but there is no guarantee that it will. Even if it did transpire, presumably the residue of the tax would affect distributive costs. We are against this. There are many other sources of taxation from which the Minister could have got his £1.2 million. There are luxury items which I am not going to mention—it is a matter entirely for the Minister—and he could have got £1 million from these other sources without affecting sensitive commodities such as petrol.

Question put.

The Committee divided: Tá, 87; Níl, 44.

Tá

• Aiken, Frank.
• Andrews, David.
• Barrett, Sylvester.
• Blaney, Neil T.
• Boland, Kevin.
• Booth, Lionel.
• Boylan, Terence.
• Brady, Philip.
• Brennan, Joseph.
• Brennan, Paudge.
• Browne, Patrick.
• Burke, Patrick J.
• Byrne, Henry.
• Calleary, Phelim A.
• Carter, Frank.
• Carty, Michael.
• Childers, Erskine.
• Clohessy, Patrick.
• Cluskey, Frank.
• Colley, George.
• Collins, Gerard.
• Corish, Brendan.
• Corry, Martin J.
• Cotter, Edward.
• Coughlan, Stephen.
• Crinion, Brendan.
• Cronin, Jerry.
• Crowley, Flor.
• Cunningham, Liam.
• Davern, Don.
• Desmond, Eileen.
• de Valera, Vivion.
• Dowling, Joe.
• Egan, Nicholas.
• Fahey, John.
• Fanning, John.
• Faulkner, Pádraig.
• Fitzpatrick, Thomas J. (Dublin)
• Flanagan, Seán.
• Foley, Desmond.
• French, Seán.
• Gallagher, James.
• Geoghegan, John.
• Gibbons, Hugh.
• Gibbons, James M.
• Gilbride, Eugene.
• Gogan, Richard P.
• Haughey, Charles.
• Healy, Augustine A.
• Hillery, Patrick J.
• Hilliard, Michael.
• Kenneally, William.
• Kennedy, James J.
• Kitt, Michael F.
• Kyne, Thomas A.
• Lalor, Patrick J.
• Larkin, Denis.
• Lemass, Noel T.
• Lemass, Seán.
• Lenihan, Brian.
• Lenihan, Patrick.
• Lynch, Celia.
• Lynch, John.
• McAuliffe, Patrick.
• McEllistrim, Thomas.
• MacEntee, Seán.
• Meaney, Tom.
• Molloy, Robert.
• Mooney, Patrick.
• Moore, Seán.
• Moran, Michael.
• Mullen, Michael.
• Murphy, Michael P.
• Nolan, Thomas.
• Norton, Patrick.
• Ó Briain, Donnchadh.
• Ó Ceallaigh, Seán.
• O'Connell, John F.
• O'Connor, Timothy
• O'Leary, John.
• O'Leary, Michael.
• Pattison, Séamus.
• Smith, Patrick.
• Spring, Dan.
• Tierney, Patrick.
• Treacy, Seán.
• Tully, James.

Níl

• Barry, Richard.
• Belton, Luke.
• Belton, Paddy.
• Burke, Joan T.
• Burton, Philip.
• Byrne, Patrick.
• Clinton, Mark A.
• Collins, Seán.
• Dockrell, Henry P.
• Dockrell, Maurice E.
• Donegan, Patrick S.
• Donnellan, John.
• Dunne, Thomas.
• Esmonde, Sir Anthony C.
• Farrelly, Denis.
• Fitzpatrick, Thomas J. (Cavan).
• Gilhawley, Eugene.
• Governey, Desmond.
• Harte, Patrick D.
• Hogan, Patrick (South Tipperary).
• Hogan O'Higgins, Brigid.
• Connor, Patrick.
• Coogan, Fintan.
• Cosgrave, Liam.
• Costello, Declan.
• Costello, John A.
• Creed, Donal.
• Crotty, Patrick J.
• Dillon, James M.
• Jones,Denis F.
• Kenny, Henry.
• L'Estrange, Gerald.
• Lindsay, Patrick J.
• Lyons, Michael D.
• McLaughlin, Joseph.
• O'Donnell, Patrick.
• O'Donnell, Tom.
• O'Hara, Thomas.
• O'Higgins, Michael J.
• O'Higgins, Thomas F.K.
• Reynolds, Patrick J.
• Ryan, Richie.
• Sweetman, Gerard.
• Timmins, Godfrey.

Tellers: Tá: Deputies Carty and Geoghegan; Níl: Deputies L'Estrange and T. O'Donnell.

Question declared carried.