Vol. 529 No. 1
501 Ms O'Sullivan asked the Minister for Finance the reason for the proposal to abolish the right to mobility allowance for those who benefit from the disabled drivers and passengers tax relief, as and from 1 April 2001; if he will reconsider the proposal; and if he will make a statement on the matter. [2342/01]
The disabled drivers' and disabled passengers' (tax concessions) scheme enables qualifying persons to purchase a new car every two years free of vehicle registration tax and VAT to a maximum of £7,500 if the qualifying person is the driver, and £12,500 if the passenger. In addition, the scheme provides for the refund of excise on up to 600 gallons of fuel and for an exemption from annual road tax. It is estimated that the scheme cost £22 million in 2000, excluding the annual road tax costs.
The mobility allowance, which is a monthly payment administered by the health boards, provides financial support to severely disabled people who are unable to walk or use public transport and is intended to enable them to benefit from a change in surroundings, for example, by financing the occasional taxi journey. The rate of the allowance is being doubled to a maximum of £90 per month from 1 April next, and from that date persons who benefit from the disabled drivers' and disabled passengers' (tax concessions) scheme will be unable to also avail of the mobility allowance. By definition, the beneficiaries of the tax-based scheme already have access to transport, which is heavily subsidised by the State, and the object of the new arrangement is to target the increased mobility allowance at incapacitated people who do not enjoy these advantages. Accordingly, I do not propose to remove the restriction.
