Vol. 484 No. 2
113 Ms O. Mitchell asked the Minister for Finance if he will give details on the proposals, if any, there are to encourage the use of cleaner fuels, such as liquid petroleum gas, for motor vehicles, through the use of financial instruments, which are widely used in other EU states; and if he will make a statement on the matter. [21749/97]
117 Ms O. Mitchell asked the Minister for Finance the plans, if any, he has in relation to invoking the derogation laid down in Article 8.4 of Council Directive 92/81/EEC 1992 to extend the current favourable excise duty levels enjoyed by CIE and its subsidiaries for the purchase of diesel for public transport vehicles to incorporate more environmentally clean fuels, such as liquid petroleum gas, to be used in public transport; and if he will make a statement on the matter. [21741/97]
I propose to take Questions Nos. 113 and 117 together.
It is unclear what the Deputy has in mind in relation to the invoking of the provision for derogations laid down in Article 8.4 of Council Directive 92/81/EEC. I cannot extend derogations agreed for one purpose to other products, or for other purposes. Neither is the EU Commission likely to recommend further derogations from the general principle that energy products should be taxed.
In accordance with a Council Decision of 30 June 1997, the longstanding derogation granted under that Article, in respect of the use of mineral oils by CIE has been authorised to continue to apply until 31 December 1999, at least. There is provision in the decision to continue to apply that derogation and others automatically for subsequent periods of two years, unless the Council decides unanimously before that date, on a proosal from the Commission, whether any or all of the derogations should be abolished or modified. It should be noted that the exemption from the payment of excise duty in the case of mineral oils used by CIE was provided for in national law, prior to the adoption of the above Council Directive.
CIE does not, to my knowledge, use liquid petroleum gas in its fleet. The current EU draft directive on the taxation of energy products proposes the application of a substantial increase in the level of excise duty on liquid petroleum gas. Negotiations in this area are ongoing.
