Vol. 535 No. 1
57 Mr. Timmins asked the Minister for Tourism, Sport and Recreation if he discussed with the Minister for Finance the possibility of an excise rebate on fuel for the coach tour sector; and if he will make a statement on the matter. [12040/01]
Any amendment or extension of the fuel rebate system is a matter for my colleague, the Minister for Finance.
On 6 March 2001, he informed the House, in response to Question No. 136, that he did not have immediate plans to extend the excise fuel rebate system to coach tour operators.
However, in the light of developments arising from the foot and mouth disease crisis, my Department raised the matter again with the Department of Finance on behalf of the CTTC. The current position is that the Minister for Finance has asked his Department to fully re-examine the issue, and I understand this re-examination is under way. I understand an extension of excise rebate to the coach tour sector would have to be examined in the context of EU State aids rules.
(Mayo): Would the Minister accept the immediacy and urgency of this matter given that a coach seat is a perishable product; if it is not used today, the loss cannot be retrieved tomorrow. A bus that cannot pay its way is a loss-maker to its owner. The bus-tour operators have invested more than £20 million this year in new buses and state-of-the-art equipment in order to provide more comfort for their passengers, and in most cases, these buses will now be empty. Will the Minister ask his colleague, the Minister for Finance, whether the answer is “yes” or “no”.
The Minister's answer to queries from Deputy Moynihan-Cronin, Deputy Naughten and myself were to the effect that while individual Ministers, the Minister for the Environment and Local Government and the Minister for Finance, have individual responsibilities in their own spheres and Departments, he is responsible for the overall management of the tourism sector. It is therefore up to him to enter into whatever discussions are necessary to achieve a fruitful result in relation to protecting his own bailiwick, the tourism industry.
I have met the CTTC on a number of occasions and this was a matter that was discussed as a result of their pre-budget submission. There is an EU State aid problem here. The structures of excise duties on fuel oils have been harmonised at EU level under Directive 92/81 EEC. Article No. 8 of that directive allows member states to introduce certain reductions and exemptions from excise duties on fuel oils. Ireland is already using this provision successfully to grant a rebate for passenger services, and provide relief in other areas such as fuel for use in the manufacture of alumina for motor vehicles used for the disabled and so on.
As a result of the situation arising from the foot and mouth disease problem not only here but in Europe, I hope it will be dealt with by the Minister for Finance, but I am not sure that it can be dealt with now. It would be more a matter for the budget. I hope it is something that will be looked at in the next budget.
The situation for the bus operators has completely changed since their pre-budget submission. Many of them have no cash-flow at the moment. They are waiting to pay for new buses. The case can now be made on their behalf and I ask the Minister to inform the Minister for Finance on the change in their circumstances since their pre-budget submission.
My Department has asked the Department of Finance to re-examine their situation. It is an important question but ultimately it is a matter for the Department of Finance and I am aware that it is a matter for State aid.
That concludes Question Time.
