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Dáil Éireann debate -
Tuesday, 13 Feb 2001

Vol. 530 No. 3

Written Answers. - Road Tolls.

Olivia Mitchell

Question:

208 Ms O. Mitchell asked the Minister for the Environment and Local Government if he will accept a reduction in the Government share of toll revenue in order to minimise the impact on Dubliners of VAT imposition on toll charges and to prevent traffic diversion to congested local roads. [3861/01]

Olivia Mitchell

Question:

209 Ms O. Mitchell asked the Minister for the Environment and Local Government if he has considered the implications of VAT on toll charges for the success of the proposed infrastructural public private partnerships in view of the inevitable reduction in the revenue generating capacity of such projects. [3862/01]

I propose to answer Questions Nos. 208 and 209 together.

The European Court of Justice has ruled that road tolls charged by private operators must be subject to VAT at the standard rate and it is proposed to give effect to this decision in the Finance Bill, which is due to be published shortly. The practical implications of this measure in relation to the adjustment of existing toll charges are under active consideration between the National Roads Authority and Dublin Corporation, as the tolling authorities concerned, and the toll operators. It is not yet possible to estimate the detailed outcome of this process.

It is not considered that traffic diversion is likely to be a significant problem or that the revenue generating capacity of future public private partnerships will be significantly affected by the imposition of VAT on road tolls.

Olivia Mitchell

Question:

210 Ms O. Mitchell asked the Minister for the Environment and Local Government if he has considered the IBEC submission on tolling and the concerns expressed therein; and if he will make a statement on the matter. [3863/01]

The statutory power to levy tolls on national roads, to make toll by-laws and to enter into toll agreements with private investors in respect of national roads is vested in the National Roads Authority under Part V of the Roads Act, 1993, as amended by the Planning and Development Act, 2000. Road authorities have similar powers in relation to the tolling of non-national roads.

I understand from the NRA that it met with IBEC on 31 January to discuss the submission and that issues arising were constructively discussed at that meeting.
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