Dáil Éireann Debate, Tuesday - 29 March 2022
251. Deputy Darren O'Rourke asked the Minister for Transport the estimated cost of including own account HGV operations in the €100 emergency support scheme that has been introduced for licensed hauliers; and if he will make a statement on the matter. [16470/22]
View answerOn 15 March 2022, the Government approved an emergency support measure - the Licensed Haulage Emergency Support Scheme to address cost pressures arising from current high fuel prices.
The scheme was developed for licensed hauliers specifically for the reasons outlined below. My Department is aware there are approximately 20,000 own account HGV vehicles, therefore the cost to the Exchequer of including these would be an estimated additional c. €16 million. Any amendments to the scheme would need to be considered in the overall policy and budgetary context.
In deciding on this targeted, temporary scheme, the Government considered that the licensed haulage sector is a specific case for several reasons, primarily that the sector is of national strategic importance as a critical enabler of a functioning supply chain, bringing essential supplies into and around the State, supporting key infrastructure and enabling the maintenance of economic and social activity. In addition fuel represents a greater overall proportion of overhead cost for hauliers than would be the case for other businesses who self-provide transport as part of their wider business.
Given the rapid increase in fuel prices linked to the crisis in Ukraine, the haulage sector reported to the Government a serious risk of cessation of business among haulage companies that would have had significant implications for supply chains into the State, including for essential goods.
You will be aware that on 09 March 2022, in recognition of rising fuel costs for all citizens and businesses, the Government 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.
The Minister for Finance has written to the European Commission to ask what flexibilities might be available on an emergency basis to reduce the tax on fuel. Currently, however, the EU Energy Tax Directive limits the possibility of further reducing the tax on fuel. Specifically, the Directive requires a minimum tax of €0.33 per litre and the measures already decided have reduced the tax on diesel to the minimum.
In general, it should be recalled that the causes of these fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis.
The Government has limited resources but through the Excise measure announced on 09 March, as well as the Licensed Haulage Emergency Support Scheme approved on 15 March 2022, it has responded to help to ease the impact of these price increases. However, we must accept that it will not be possible to insulate citizens and businesses from the full impact of these fuel price increases. In providing 8 weeks support with these sudden increased costs, the Government is seeking to cushion the shock of the rapid spike in fuel prices. While it remains to be seen how fuel prices evolve it is imperative that haulage (and other) businesses engage with their customers on the need for the prices for their services to reflect the increasing costs.
