Dáil Éireann díospóireacht -
Tuesday, 29 Feb 2000

Vol. 515 No. 3

Written Answers. - Excise Duty.

Brendan Howlin

Ceist:

167 Mr. Howlin asked the Minister for Finance if his attention has been drawn to the fact that, in the context of the proposal that the fuel excise rebate scheme will in future apply only to diesel with a maximum sulphur content of 55 PPM, the only low sulphur diesel available for purchase contains 350 PPM sulphur and the Coach Tourism Council has been informed by all major oil companies that 55 PPM diesel will not be available for purchase until 2005 and only CIÉ which has its own storage tanks for bulk fuel will be in a position to access 55 PPM diesel; his views on whether it is equitable that private coach tour companies operating in the same market as CIÉ should be so disadvantaged; the steps, if any, he will take to remedy this anomaly; and if he will make a statement on the matter. [5932/00]

Minister for Finance (Mr. McCreevy)

As I said in my Budget Statement and as I have informed the House since then, I propose to modify the existing excise duty rebate on diesel which is available to CIE and to certain other bus operators, by stipulating that this concession will only be available where low sulphur diesel is used. I believe that the introduction of low sulphur diesel in Ireland should result in significant emissions reduction with consequential health and environmental benefits. The improvements are needed now.

I have been informed that low sulphur diesel is widely available in the UK and that 90% of the market share there is to this standard. I also understand that, with some technical adjustments at its Whitegate refinery, the Irish National Petroleum Corporation will be in a position to supply 50 ppm diesel. It is my own experience that where tax incentives are provided, and the ones available in this case are generous indeed, market forces will respond positively.

Provision to give effect to the announcement in my Budget Statement has been made in the Finance Bill, currently being discussed in the House. The relevant sections will be implemented by way of a ministerial order, allowing time for the interested parties to make the switch to the cleaner and more environmentally sound low sulphur fuel from the present less cleaner alternative. I can assure the House that I will not sign the order until I am satisfied that supplies of low sulphur diesel can be obtained by transport operators.