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Dáil Éireann debate -
Thursday, 30 Nov 2000

Vol. 527 No. 2

Ceisteanna – Questions. Priority Questions. - Road Haulage Industry.

Michael Noonan

Question:

3 Mr. Noonan asked the Minister for Finance if any progress has been made in the talks between senior civil servants and the Irish Road Haulage Association which were initiated after the day of protest organised by the association; if he is considering any change in the way excise duty applies to diesel purchased by road hauliers; and if he will make a statement on the matter. [28133/00]

I met representatives of the Irish Road Hauliers' Association who are concerned about increased fuel costs. I pointed out that this Government has never increased the excise duty rate on diesel – the last increase was imposed in the January 1997 budget – and that prices at the pumps were responding to market demands.

A task force on haulage issues was set up under the chair of an official from the Department of the Taoiseach. Officials from my Department, the Revenue Commissioners and the Departments of Public Enterprise, Justice, Equality and Law Reform and Social, Community and Family Affairs are represented on the task force. The task force was asked to consider and draw up a programme of action which recognises the need for a comprehensive and concerted effort by all interested parties in order to address the structural problems of the industry. I understand the work of the task force is ongoing and I believe that a package of measures can be formulated which will address the concerns of the haulage industry.

With regard to the changes, if any, in the excise duty rates, I am sure the Deputy will appreciate that it is not normal practice for the Minister for Finance to indicate in advance of the budget what amendments, if any, he is proposing.

Is the Minister aware that the Irish Road Hauliers' Association is unhappy with the progress being made by the interdepartmental group? Will he involve himself personally to ensure it is assisted in bringing about the structural changes it advocates for its industry?

There are two aspects to this question. The Irish Road Hauliers' Association is pleased with the meeting it had with the Taoiseach and myself. The association recognised that excise duties and other forms of taxation are matters for the budget.

At the same time we decided to set up a task force under the chairmanship of an official from the Department of the Taoiseach to progress these other issues. The Department of the Taoiseach is not directly involved in the haulage industry but because the problems of the industry straddle so many Departments this was thought to be the most effective approach. That has been done. The association has made its case, there have been a number of meetings and we must wait until proposals are brought forward. We know what the association wants in the taxation area but it has put forward a number of proposals in the non-tax area. These include additional enforcement staff in the Department of Public Enterprise, a doubling of the existing payment to the association, a grant scheme for hauliers who wish to change their trucks, a limit on tolls charged on trucks using new toll facilities, some form of capital allowances for premises used for parking trucks and other matters. These matters are being considered. The Minister for Finance is only involved in the taxation area.

This is an issue which, if not handled politically, could cause great difficulty. On its day of protest, the Irish Road Hauliers' Association was very moderate and did its best not to inconvenience the public. The association represents only 30% of hauliers in the country. Not alone does it have to keep its own members in line but it must also be conscious of actions which might be taken by non-members. All the hauliers involved are registered for VAT so a reduction in VAT on diesel would be of no benefit to them. They will need some comfort on budget day. The Minister should not only deal with the excise issue but he should also involve himself in the other issues so that he is in a position to give assurances on budget day and avoid protests before Christmas.

I accept what the Deputy says about the responsible attitude taken by members of the Irish Road Hauliers' Association during their recent protest. I compliment the members of the association on that. It is a pity their methods are not copied by other protest groups. I am aware that only a percentage of hauliers are members of the association. I have family connections with the industry and I understand the difficulties involved.

Since all hauliers are registered for VAT a change in VAT rates would be of no benefit to them. At our meeting it was pointed out to them by the Taoiseach and myself and it later became evident in documents published in the press, that our excise duties are low compared with those in other EU countries. A minimum rate of excise duty has been laid down and Ireland is very near to it.

There is still a 6p or 7p difference.

It is about that. The pressure in Europe is to raise energy taxation. This must be taken into account when I am preparing the budget.

Question No. 4 taken with Question No. 1.

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