Haulage Industry.

Dáil Éireann Debate, Wednesday - 22 June 2005

Wednesday, 22 June 2005

Questions (92)

Mary Upton

Question:

88 Dr. Upton asked the Minister for Transport the action he intends to take to assist hauliers here who may be put at a competitive disadvantage as a result of UK proposals to impose a new toll scheme with compensation for fuel costs designed to be cost neutral to British drivers; if his attention has been drawn to research which indicates that the new regime will cost businesses here €60 million annually; if he raised this issue at EU level; and if he will make a statement on the matter. [21244/05]

Written answers

Minister of State at the Department of Transport (Mr. Callely)

In November 2001 the UK Treasury published a consultation document, Modernising the Taxation of the Haulage Industry. The purpose of the document was to set out UK Government thinking on its proposal to introduce a form of lorry road-user charging in the UK.

The charge would be implemented to ensure that lorry road-users in the UK contribute on a fairer and more equal basis towards the costs they impose when using UK roads infrastructure. The charge would be levied on all road users regardless of nationality.

A rebate of fuel excise duty would be paid to hauliers using the system and buying fuel in the UK. It is not clear how this element of the scheme will be implemented in detail, but it would appear to be designed to be cost neutral to hauliers in Britain, who purchase their fuel in the UK. However, the scheme could potentially result in extra cost to non-UK hauliers who have purchased lower cost fuel at home, as is the case for hauliers in the Irish Republic. Consequently, Ireland has a special interest in this proposal since Irish hauliers, in addition to bilateral Ireland-UK trade operations, uniquely use the UK as a land bridge to mainland Europe.

My Department is monitoring the development of the proposed scheme to ensure that any charging system put in place will not in practice result in unfair cost to Irish hauliers. Any potential disruption of trade and in particular cross-Border North-South trade must also be avoided.

These concerns have been raised with the UK Treasury and it has indicated a willingness to work closely with my Department when designing the administration of the system and related matters.

The specific issue of UK lorry road user charges has not been formally raised at EU level. However, my Department has raised concerns at EU level in relation to ensuring that multiple charging regimes and toll-charge levels do not impact adversely on the competitiveness of the transport sector and industry generally. I believe the same considerations should apply in the case of the proposed UK charges.