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Dáil Éireann debate -
Tuesday, 28 Jun 1988

Vol. 382 No. 9

Ceisteanna—Questions. Oral Answers. - Irish Road Hauliers' Costs.

21.

asked the Minister for Tourism and Transport if he will outline the following: (a) acquisition costs; (b) maintenance costs; (c) insurance costs; (d) fuel costs; (e) labour costs; (f) road tax; (g) other tax and (h) other costs borne by Irish road hauliers compared to road hauliers in the United Kingdom; the plans he has to eliminate any cost disadvantage before 1992; and if he will make a statement on the matter.

As I stated in my response to a broadly similar question by the Deputy on 24 May 1988, studies have concluded that Irish hauliers operate under a certain cost disadvantage particularly in relation to United KingdomNorthern Ireland, but the extent of that disadvantage cannot be accurately quantified at present since these studies did not appear to compare like with like.

My Department recently asked the haulage industry to provide data on their members' costs on which a more precise comparison can be based. This information is still awaited. If the Deputy wishes to repeat the question later this year I will be glad to supply him with what information I have at that stage.

Would the Minister agree that studies are not necessary to highlight the fuel cost and VAT disadvantages of our operators? Furthermore, in the light of that, would he assure the House that he and the Government propose taking steps to remove those disadvantages before 1992?

The points made by the Deputy are valid ones. The fuel costs of our operators are substantially greater. However, what is not generally known is that road tax on a 38 tonne, five axle, vehicle in the south of Ireland amounts to £1,041 whereas in the United Kingdom and Northern Ireland the corresponding tax amounts to £3,000, a substantial difference.

It is the one area.

While I accept what the Deputy says with regard to fuel and other costs, and that they place us at a disadvantage — particularly ones involving excise duties — there is at least that small balancing amount. It does not make up for the difference or place them in an equal green field, so to speak, but in the context of the completion of the totally free internal market in 1992, the Government are and will be addressing those problems further.

Would the Minister agree that the road haulage sector could be developed in a major way in the context of 1992 and thereafter if they are placed on a proper footing? Has the Minister any plans to ensure that we can maximise growth opportunities after 1992?

I agree fully with the Deputy. I think I informed him already by way of a reply in the House that the most recent meeting of the Council of Ministers took a substantial step forward with regard to the freeing of the market and, as a result of decisions taken, have provided for Irish entrepreneurs in the haulage business an opportunity for substantial development.

Question No. 22. I must dispose of these questions within the prescribed time. There are three questions remaining. I am sure I will have Deputies' co-operation in dealing with them.

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