I propose to take Questions Nos. 172 to 174, inclusive, together.
My Department officials and I continue to engage with the UK authorities to seek an exemption from the HGV road user levy for the A5. I recently wrote again to Mr Hammond on the issue and I await his reply. This morning I met with my colleague in the Northern Irish Executive, Minister Mark Durcan to discuss this matter. While this is a function that is not devolved to the Northern Executive from Westminister, he and his officials are working with us to ensure an appropriate resolution to the difficulties the UK road user levy is creating on our island for hauliers, in particular those from Donegal. The upgrade of the A5 is expected to bring significant benefits to both economies in the region and I would have concerns that any increased costs levied on Irish operators who are simply transiting Northern Ireland would have a detrimental impact on this economic benefit. I will continue to pursue what I believe to be a compelling case for the exemption.
For the exemption to be effective, it will of course be necessary to also exempt any approach roads that must be used in order to access the A5. As the Deputy will be aware, the management of road closures on the A5 and the issue of how resulting diversions may affect the administration of the levy are matters entirely for the UK and NI authorities. The Deputy refers again to the possibility of Irish HGV operators relocating to other jurisdictions. While operators are free to make this choice, I believe that when the costs of establishment and the severe limitations imposed by cabotage regulations on operations in Ireland are considered the number of operators who choose to relocate will be limited. The Deputy will further appreciate and be aware that the Government has made consistent efforts to support the Irish haulage industry. For example the introduction of the fuel rebate for licensed hauliers was a significant boost for the industry and makes fuelling in Ireland even more attractive for hauliers. Furthermore, my Department is chairing an inter-departmental working group looking at the issues involved with developing road charging for HGVs in Ireland and this group will be reporting in the summer on the feasibility of such.
