Dáil Éireann díospóireacht -
Thursday, 11 Feb 1999

Vol. 500 No. 3

Written Answers. - Disabled Drivers Scheme.

Noel Ahern

Ceist:

84 Mr. N. Ahern asked the Minister for Finance if he will give details of the disabled drivers' tax concessions car scheme; the number of approvals issued in the most recent years for which data is available; the number of approvals currently in existence; the cost of the scheme; the reason participants are allowed change their cars every two years; the destination or outcome of cars no longer used by disabled drivers; if these become liable to the waived tax; if the scheme will be extended to extra drivers in view of the fact that this could be done without cost if the two years was extended to three or four; and if he will make a statement on the matter. [3967/99]

Minister for Finance (Mr. McCreevy)

The scheme to which the Deputy refers is the disabled drivers and disabled passengers (tax concessions) scheme. The requirements, conditions and benefits pertaining to that scheme are set out in Statutory Instrument No 353, 1994, a copy of which is available in the Dáil Library.

The scheme is operated on a day-to-day basis by the Office of the Revenue Commissioners. I have been informed by the Revenue Commissioners that the number of vehicle registration tax-VAT repayments made under the scheme during the past three years is as follows:

Year	Repayment	Total
1996	996 – Disabled drivers541 – Disabled passengers	1,537
1997	1,261 – Disabled drivers855 – Disabled passengers	2,116
1998	1,390 – Disabled drivers1,166 – Disabled passengers	2,556

The Commissioners have also informed me that the best indicator of the number of persons currently benefiting from the scheme is the number claiming, on an on-going basis, the relief from excise duty on fuel. That figure is 5,400.

The cost of the scheme has risen from approximately £4 million in 1994 to £11.8 million in 1997 and £14.4 million in 1998. These amounts do not include the cost of road tax which is remitted by the local authorities.

For a considerable period of time beneficiaries have been allowed claim repayment of VRT-VAT on a car every two years. This provision was put in place originally on the basis of a case made by organisations representing the disabled who maintained that, because disabled persons may have a higher than average car usage and are particularly reliant on their cars for transport, they require newer, more reliable cars than may generally be the case. Once the two year retention period has expired, the car in question may be disposed of by the beneficiary on the open market without any tax liability arising. Residual tax is not repayable when a vehicle is disposed following the two year period.

The Deputy's proposal concerning a possible extension of the scheme – to be paid for by increasing the two year period for retention of the car – will be taken into consideration when the scheme is next reviewed. I should point out, however, that organisations representing the disabled are likely to be opposed to any extension of the period during which a beneficiary under the scheme must retain the car.