Select Committee on Finance and General Affairs díospóireacht -
Thursday, 25 Apr 1996

SECTION 68.

Question proposed: "That section 68 stand part of the Bill."

Mr. Cullen

I am always concerned when I see transport costs rising, given this country's great need to export. I made the point during the budget debate that the increases were quite substantial although they do not appear so because we now talk about litres rather than gallons. A 5p increase on a gallon of petrol, would have been seen as very substantial. However, when it is only a penny a litre, it tends to slip through unnoticed.

On many occasions, I have spoken about the artificial cost of sustaining jobs. There is not a company or an industry in this country that is not in some way dependent on transport and we already have high transport costs. I was disappointed to see the Minister introducing an increase. It is not helpful. These costs over which we have control impact on employment. We should be extremely careful about the introduction of such charges. I am opposed to this section for those reasons.

Dr. O'Hanlon

I support Deputy Cullen. I spoke against this measure during the budget debate. Untold damage was done in the Border areas ten to 15 years ago when petrol price increases meant that petrol was cheaper on the northern side of the Border. People went across to buy petrol but also bought other goods which were cheaper than on this side of the Border. I have no doubt it was counterproductive at that time. While the increases are small on this occasion it is certainly a development I do not like to see. For a number of years petrol prices were not increased and we want to keep it that way.

Mr. Quinn

A litre of petrol costs about 57p or 58p — there is now a considerable price variation. We are not talking about a substantial increase. The marginal differences between the prices of petrol and related gasoline products south and north of the Border is still very much in favour of the South and has undoubtedly had a positive impact. I was extremely conscious of that at the time.

The motor lobby generally would say they are already paying an enormous amount of money in taxes but, the other side of the coin is the commitment of public moneys to the county roads programme, which is very substantial. It has to be part-financed and, notwithstanding the points made by Deputy Cullen and Deputy O'Hanlon, of all the revenue generating measures, this was a fairly light imposition.

Mr. Cullen

Most, if not quite a substantial amount, of the goods going out of this country into the UK go on the land route. I am taking a bit of a leap here but one should view that in conjunction with our currency difficulties. There are areas where we can control our own costs and tax impositions and others where we do not have the same level of control. We must be extremely conscious of suppressing those artificial costs.

We are conscious of our exports to the UK market and our currency problems. One way of alleviating those would be to keep costs down. We should be conscious of such impositions.

Mr. Quinn

I invite Deputy Cullen to address the green — environmental, not Republican — wing of his party who argue that we should impose higher taxes on energy, including petrol, in the interests of the environment. However, that is a debate for another day.

Question put and agreed to.