Dáil Éireann Debate, Tuesday - 29 January 2013
756. Deputy Sandra McLellan asked the Minister for Transport, Tourism and Sport further to Parliamentary Question No. 90 of 16 January 2013, if his attention has been drawn to the fact that coach and bus operators were in receipt of a rebate on diesel which was stopped with the promise of being re-introduced in a different format; his plans to re-introduce it in a different format; and if he will make a statement on the matter. [4555/13]
View answerUltimately this is a matter for the Minister for Finance. The 2003 EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States below the EU minimum duty rate. In the case of public transport services, these derogations included reduced rates to apply to fuel used for scheduled bus services. While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission refused all such requests. The Finance Act 2008 provided the basis for the removal of these excise duty reliefs with effect from 1 November 2008.
At that time, I understand some consideration was given to alternative support mechanisms that could be appropriate and could be done in a manner compatible with EU State Aid and other legal requirements. However, introducing an alternative suitable mechanism was not considered possible in the economic circumstances at that time. I understand the Minister for Finance has received a number of submissions from, and on behalf of, private coach operators seeking to have the auto-diesel excise duty relief for licensed road hauliers that was announced in the Budget extended to them. He has indicated that he will consider these proposals and the level of the rebate in the context of the Finance Bill.
