John Brady
Question:188. Deputy John Brady asked the Minister for Transport the assistance his Department will provide to the haulage sector who are greatly impacted as a result of the recent rise in fuel costs [14298/22]
View answerTuesday, 22 March 2022
Questions (188)
Written answers
The current spike in energy prices arises from the global recovery from the Covid-19 pandemic in conjunction with current international tensions and supply constraint issues. The causes of these price pressures are not within our control. This is being witnessed across the European Union as well as many other regions.
Minister Ryan and I have been closely engaged with the haulage sector since last December, exploring options that might address cost burdens while at the same time tackling the decarbonisation challenge for heavy goods vehicles.
The recent crisis in Ukraine has had a further dramatic impact on fuel prices.
Following discussions with the sector, on 11 March 2022, my Department announced an emergency support measure for licensed hauliers to address cost pressures arising from current high fuel prices. This targeted, temporary grant scheme will provide a fixed payment of €100 per week for each heavy goods vehicle (over 3.5 tonnes) as listed on a road haulage operator’s licence. The scheme will operate for a period of 8 weeks and will be reviewed thereafter. The estimated cost to the State for the temporary measure is €18 million. Details on how to avail of the Scheme will be communicated to hauliers.
In addition to the Scheme, you will also be aware that the Government on 9 March 2022 reduced Excise duty by 20 cent per litre of petrol, 15 cent per litre of diesel and 2 cent in the excise duty charged on marked gas oil in order to reduce the cost of fuels.
Further, the Diesel Rebate Scheme offers a partial excise refund to qualifying operators when the price of diesel is high. In Budget 2020, in light of the challenges arising from Brexit uncertainty facing the industry, the marginal rate of compensation at prices over €1.32 (VAT inclusive) was doubled up to the maximum repayment rate of 7.5 cents per litre. In recognition of the vital role that the haulage sector plays in the economy, this increase has been maintained since.
In addition, businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.
There are also supports available for operators to switch to alternatively fuelled vehicles. These include a purchase grant and reduced tolls for vehicles powered by a number of alternative fuels including hydrogen, electric, and gas. In addition, Budget 2022 announced an expansion of the Accelerated Capital Allowance (‘ACA’) scheme for Gas Vehicles and Refuelling Equipment. This ACA scheme provides an accelerated wear and tear allowance for capital expenditure incurred on qualifying vehicles and refuelling equipment.
The past two years have presented many challenges for the sector - the measures I have outlined above reflect Government understanding of that pressure and recognition of the important role that the haulage industry plays in keeping the country going. Minister Ryan and I will continue to monitor this issue as it evolves.
Question No. 189 answered with Question No. 162.