Dáil Éireann díospóireacht -
Thursday, 22 Feb 2001

Vol. 531 No. 2

Written Answers. - Mobility Allowance.

Willie Penrose

Ceist:

87 Mr. Penrose asked the Minister for Finance if he will rescind his recent decision regarding eligibility for the mobility allowance; the number of individuals in receipt of specific tax concessions towards both the purchase of an adapted private vehicle and the mobility allowance; and if he will make a statement on the matter. [5253/01]

Minister for Finance (Mr. McCreevy)

The disabled drivers' and disabled passengers' (tax concessions) scheme enables qualifying persons to purchase a new car every two years free of vehicle registration tax, VRT, and VAT to a maximum of £7,500 if the qualifying person is the driver, and £12,500 if the passenger. In addition, the scheme provides for the refund of excise on up to 600 gallons of fuel and for an exemption from annual road tax. It is estimated that the scheme cost some £22 million in 2000, excluding the annual road tax costs. The mobility allowance, which is a monthly payment administered by the health boards, provides financial support to severely disabled people who are unable to walk or use public transport and is intended to enable them to benefit from a change in surroundings – for example, by financing the occasional taxi journey.

The rate of the allowance is being doubled to a maximum of £90 per month from 1 April next, and it had been envisaged that from that date persons who benefit from the disabled drivers' and disabled passengers' (tax concessions) scheme would be unable to also avail of the mobility allowance. By definition, the beneficiaries of the tax-based scheme already have access to transport which is heavily subsidised by the State, and the object of the new arrangement is to target the increased mobility allowance at incapacitated people who do not enjoy these advantages. I have since been considering this proposal in the light of concerns expressed to me by a number of Deputies about the impact on some affected individuals of complete cessation of the mobility allowance, and have decided that while the increased rate of £90 per month will, as intended, be given only to people who are not also enjoying the tax subsidies, those benefiting from both schemes should retain the mobility allowance at the existing rate of £45 per month.

The Deputy also asked for information about the utilisation of these schemes. The Revenue Commissioners administer the disabled drivers and disabled passengers (tax concessions) scheme which, as indicated, allows for the purchase every two years of a new car free of VRT and VAT, subject to certain limits. The number who availed of the VRT and VAT concession over each of the past two years is as follows:

Year	No. of Disabled Drivers	No. of Disabled Passengers	Total
1999	1,362	1,243	2,605
2000	1,612	1,689	3,301

Based on the numbers who claim relief from excise duty on fuel on an ongoing basis, it is estimated that the total number of beneficiaries under the scheme is in the region of 7,000. At end December 2000, the mobility allowance administered by the health boards was being paid to 2,937 people. However, as it was never intended that individuals should benefit from both schemes the data from the two agencies has not been integrated. Accordingly, it is not possible to identify the extent of overlap between the two schemes.