I move Financial Resolution No. 2:
(1) THAT in this Resolution—
"the Order of 1975" means the Imposition of Deputies (No. 221) (Excise Duties) Order, 1975 (S. I. No. 307 of 1975);
"the Order of 1987" means the Imposition of Duties (No. 285) (Excise Duties) Order, 1987 (S. I. No. 19 of 1987).
(2) THAT the duty of excise on mineral hydrocarbon light oil imposed by paragraph 11(1) of the Order of 1975 shall, in lieu of the rate specified in paragraph 5(1) of the Order of 1987, be charged, levied and paid, as on and from the 28th day of January, 1988, at the rate of £29.47 per hectolitre.
(3) THAT—
(a) for the purposes of this paragraph, mineral hydrocarbon light oil shall be deemed to be unleaded if it contains not more than 0.013 grammes of lead per litre or, where such oil is delivered for home use before the 1st day of April, 1990, if it contains not more than 0.020 grammes of lead per litre,
(b) the lead content of mineral hydrocarbon light oil shall, for the purposes of subparagraph (a) of this paragraph, be established in accordance with the provisions of Council Directive No. 85/210/EEC of 20th March, 1985¹, and
(c) subject to compliance with such conditions as the Revenue Commissioners may think fit to impose, a rebate of the duty of excise imposed by paragraph 11(1) of the Order of 1975 on mineral hydrocarbon light oil shall be allowed at the rate of £0.80 per hectolitre in respect of such oil (not being aviation gasoline within the meaning of section 73 of the Finance Act, 1984 (No. 9 of 1984)) which is deemed to be unleaded by virtue of subparagraph (a) of this paragraph and on which the said duty is paid on or after the 28th day of January, 1988.
(4) THAT the duty of excise on hydrocarbon oil imposed by paragraph 12(1) of the Order of 1975 shall, in lieu of the rate specified in paragraph 5(2) of the Order of 1987, be charged, levied and paid, as on and from the 28th day of January, 1988, at the rate of £22.31 per hectolitre.
(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).
¹O. J. No. L96, 3.4.1985, p.25.
I have pleasure in moving this resolution which is the resolution dealing with hydrocarbons. The purpose of this resolution is to give effect to an excise duty increase of 8p, including VAT, on a gallon of petrol and a 4p increase, including VAT, on a gallon of auto diesel. These increases, which are intended to take effect from midnight tonight, will result in the following additional Exchequer yields: petrol in 1988, £14.8 million and in a full year £16.6 million; auto diesel in 1988, £3.7 million and in a full year, £4 million. The resolution also provides for an excise duty differential of 4½ per gallon including VAT in favour of unleaded petrol. The Minister mentioned that matter in his speech. The present higher trade costs mean that unleaded petrol is 4½p per gallon dearer than its leaded equivalent. The present measure will therefore equalise the price of leaded and unleaded petrol at the point of sale and thus remove a considerable disincentive to the use of unleaded petrol. Again, virtue is triumphing over base monetary considerations.