Vol. 513 No. 6
246 Mr. Aylward asked the Minister for Finance if he will review the proposal in the 2000 budget to introduce a fuel rebate on low sulphur diesel to transport companies on scheduled services and school transport services in view of the fact this fuel is not available; and if his attention has been drawn to the fact that, if it were available, this would add to the running cost of the companies with a subsequent increase in fares to the customers. [3416/00]
As I said in my Budget Statement, I propose to modify the existing excise duty rebate on diesel fuel, which is available to CIE and to certain other bus operators, by stipulating that this concession will only be available where low-sulphur diesel is used. This restriction of an existing concession, which is currently available for all forms of diesel, is motivated solely by environmental concerns to produce cleaner air. This is one positive signal of the Government's firm commitment to reducing greenhouse gas emissions, as is required under the Kyoto Protocol. According to studies carried out by the UK Department of the Environment, Transport and the Regions' Cleaner Vehicle Task Force, the effect of switching from a conventional diesel fuel to low sulphur diesel will reduce emissions of particulates by approximately 40%. Low sulphur diesel also allows the use of other abatement technology which can reduce emission of particulates, hydrocarbons and carbon monoxide by a further 90%.
The introduction of low sulphur diesel in Ireland should result in significant emission reduction with consequential health and environmental benefits. These improvements are needed now.
Provision to give effect to the announcement in my Budget Statement will be made in the forthcoming Finance Bill. The relevant sections will be implemented by way of a ministerial order. Prior to the order coming into effect, a process of consultation will take place with the transport operators, the suppliers and with other Departments and agencies. It will be essential for the operators to co-operate in the early introduction of this cleaner and more environmentally sound fuel and for that reason, I will be seeking an early switch to this fuel type from the present, less acceptable alternatives.
