Dáil Éireann debate -
Tuesday, 14 Dec 1999

Vol. 512 No. 6

Written Answers. - Tax Rebates.

Olivia Mitchell

Question:

198 Ms O. Mitchell asked the Minister for Finance the plans, if any, he has to compensate private bus operators who were unaware of the excise duty rebate on diesel fuel prior to 1997; and if he will make a statement on the matter. [26998/99]

Olivia Mitchell

Question:

199 Ms O. Mitchell asked the Minister for Finance when the excise duty rebate for diesel fuel used in buses and trains was introduced; the number of private bus operators who availed of this scheme prior to January 1997 and to date; and if he will make a statement on the matter. [26999/99]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 198 and 199 together.

I understand from the Revenue Commissioners that the Deputy wishes to be supplied with information on the position in relation to private bus operators providing school bus runs under contract to Bus Éireann.

The repayment provision is contained in paragraph 12(11) of the Imposition of Duties (No 221) (Excise Duties) Order, 1975 (SI No 307/75).

The conditions governing repayment are that: the applicant carries on a passenger road service within the meaning of section 2, Road Transport Act, 1932, and is either the licensee under a passenger licence granted under section 11 of the Act in respect of the passenger road service, or is exempted by the application of section 7 of the Act; the claim is made within four months from the date the oil is used or within such longer period as the Revenue Commissioners may in a particular case allow.

Prior to March 1998 a small number of private bus operators had claimed repayments under the scheme but these were refused by the Revenue Commissioners on the basis of advice from the Department of Public Enterprise that the services provided to CIE were in the nature of private hire and, therefore, would not be regarded as coming within the definition of road passenger services for the purposes of the Road Transport Act, 1932.

In March 1998 the Department of Public Enterprise advised Revenue that, in the circumstances of the contractual arrangement between CIE (Bus Éireann) and the private operators, the private operators were considered to be provid ing a service under contract to Bus Éireann and were considered to be covered by the exemption granted to CIE under the Transport Act, 1958.

Revenue informed the private operators that, with effect from March 1998, they would be eligible for repayment under the 1975 order. A strict interpretation of the four months time limit in the order for lodgement of claims would have limited retrospective claims to December 1997. However, as a third party had already been authorised to lodge claims for school bus runs on an annual basis, the Commissioners, in the interests of equity, extended the time limit to allow for lodgement of claims by the private operators also on an annual basis. Accordingly valid claims for oil usage since 1 January 1997 are currently being accepted.

While there are not plans to extend retrospection further, recent legal advice, which the Revenue Commissioners have received, has raised complex policy and legal issues regarding repayments under the scheme. These matters are under consideration by the Revenue Commissioners and by the relevant Departments concerned. As soon as the issues have been resolved, the outcome will be communicated to the various interests concerned.