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Dáil Éireann debate -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Adjournment Debate. - Haulage Vehicle Tax.

In a pre-budget speech in the House of Commons on 9 November 2000, the British Chancellor of the Exchequer, Gordon Brown, announced, "So that foreign lorries pay their share of the costs of using our roads, we intend to introduce in Britain a vignette system, a British disc, under which non-British companies and lorries pay their share to Britain for using British roads". This announcement has caused consternation in the Irish road haulage sector. In the intervening period, no further details of Gordon Brown's proposal have been released. The Minister of State at the Department of Public Enterprise, Deputy Jacob, stated in reply to a Dáil Question of 28 November that his Department was in contact with the British authorities immediately after the British Chancellor's announcement but that no details were available other than the very broad outline in the Commons speech.

The proposed charge has already become popularly known, or should I say unpopularly known, as the "Brit. disc". Even from the broad outline, it is clear that it would be a penalty on Irish hauliers. Chancellor Brown referred to introducing the system in Britain and for British roads but, unless we are otherwise informed, it has to be assumed this would apply not just to the island of Britain, but to the Six Counties, which remain for the moment at least under Chancellor Brown's jurisdiction. In this jurisdiction, therefore, Irish hauliers will be subjected to an imposition which will be uniquely punitive, the vast majority of them having to pass through Britain, and in many cases the North of Ireland also, to get to the Continent.

It is estimated that 80% of truckers from the Twenty Six counties regularly travel to or pass through the Six Counties and or Britain. Trade with other EU countries is predominantly by that route. The Irish Road Haulage Association has stated that the "Brit. disc" would impose crippling extra costs on the trucking industry, with approximately 16,000 vehicles operating out of the Twenty Six counties being subject to the charge.

The proposed "Brit. disc" would be in clear breach of EU freedom of movement regulations and would hit truckers in the Twenty Six counties hardest. We have been involved in developing EU highways which are supposed to facilitate trade across the Continent, including these islands. Our ports are being upgraded for this purpose. A British charge on Irish trade runs totally contrary to these developments. If this charge is to go ahead and if it is to apply to hauliers travelling across the Border, it would represent an attack on Irish trade. We are trying to build all-Ireland and cross-Border trade in the context of the implementation of the Good Friday Agreement and we are faced with an outrageous proposal which would re-enforce the artificial frontier. In my constituency of Cavan-Monaghan, and that of the Leas-Cheann Comhairle, there are hundreds of hauliers who would be directly affected. At a time when physical barriers with our neighbouring counties have been lifted, this charge would be a fiscal barrier.

I have already raised this matter with Inter-Trade Ireland, the all-Ireland trade body established under the Good Friday Agreement. It has been conducting road shows around the Twenty Six Counties in recent months to encourage cross-Border trade. A proposal such as Gordon Brown's runs totally contrary to its work also.

The reply from the Minister of State, Deputy Jacob, on 28 November did not mention the implications for Ireland of Gordon Brown's plans.

I thank the Minister of State for his attendance here this evening and I urge him to ensure the British Government is left in no doubt about the universal Irish position to this proposal. The "Brit. disc" must be strongly resisted by the Irish Government and Mr. Brown must be made to think again.

I thank Deputy Ó Caoláin for raising this matter.

The UK Chancellor of the Exchequer announced recently in the House of Commons that the United Kingdom is considering the introduction of road user charges in respect of heavy goods vehicles. This is seen as a response to criticism by some British hauliers that while they are obliged to pay motorway tolls in mainland Europe, foreign vehicles are allowed to use the British motorway network toll-free.

Apart from some tunnels and bridges, the motorway network in Britain has been toll-free since its inception. Any tolls currently applied to bridges and tunnels in Britain apply to all users, regardless of the nationality of the user.

A European Council directive, which came into force in January 1995, allows member states to charge minimum rates of tolls and or user charges on motorways, and roads of motorway standard, for goods vehicles of 12 tonnes and over. The rates of user charges are related to the duration of the use made of the infrastructure and differentiated in relation to the costs caused by the road vehicles.

The directive lays down specific terms under which tolls and user charges may be imposed. They may only be imposed on users of motorways or other multi-lane roads with characteristics similar to motorways, or users of bridges, tunnels and mountain passes. The charges applicable are outlined in a 1999 directive. Charges can vary in relation to the number of axles, the gross weight and the pollution rating of the vehicle's engine. Vehicles with lower gross weights, especially those with road friendly suspension, would have to pay considerably less than these amounts.

Five member states, Belgium, France, Germany, Luxembourg and the Netherlands, already impose user charges in respect of their motorway networks. There is a single user charge for the five member state regions, known as the Eurovignette. This avoids the need for separate payments when crossing from one country to another within the Eurovignette area. Eurovignettes may be purchased at post offices, truck stops and other outlets near the borders and in the ports of entry and must be displayed prominently on the front of the vehicle.

Tolls and user charges may not discriminate directly or indirectly, or on the grounds of the nationality of the haulier, or the origin or destination of the vehicle. Where these tolls or user charges apply, they apply to all goods vehicles over 12 tonnes, engaged in national or international haulage, regardless of the haulier's nationality. Any proposal to introduce user charges in the UK would have to comply with EU laws as regards non-discrimination and would have to apply equally to UK registered and foreign registered vehicles. If Britain decides to apply the terms of the directive to its motorway network, vehicles registered in Britain would have to pay the same user charges applied to non-UK registered hauliers for the use of the UK national motorway network.

My Department was in touch with the British authorities immediately after the Chancellor's announcement. However, no further details of the proposed scheme, other than the very broad outline in the Chancellor's statement to the House of Commons, have become available.

I will continue to monitor the developments closely to ensure that any moves to introduce road user charges are fair and non-discriminatory. I will keep the Deputy informed.

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