Tuesday, 17 June 2008

Ceisteanna (399, 400)

Michael Ring

Ceist:

457 Deputy Michael Ring asked the Minister for Transport the alternative support mechanisms that will be given on the termination of the excise duty refund for public transport services; and if he will make a statement on the matter. [23666/08]

Amharc ar fhreagra

Michael Ring

Ceist:

458 Deputy Michael Ring asked the Minister for Transport his views on the submission by a group (details supplied) which contained a proposed alternative to the fuel excise refund, which is non-tax based and similar to the scheme operated in the UK; and if he will make a statement on the matter. [23667/08]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Transport)

I propose to take Questions Nos. 457 and 458 together.

The EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States below the EU minimum duty rate. In the case of public transport services under my responsibility, these derogations included reduced rates to apply to fuel used for scheduled bus services. Scheduled bus services comprise bus passenger services provided by Bus Atha Cliath, Bus Eireann, private operators in accordance with bus route licences under the 1932 Road Transport Act and holders of Authorisations pursuant to European Council Regulation 684/92 as amended.

While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission, which is the deciding authority, has to date refused all such requests. The Finance Act 2008 provided the basis for the removal of these excise duty reliefs with effect from 1 November 2008.

My Department, in conjunction with the Department of Finance and other Departments, has been exploring whether alternative support mechanisms could be appropriate and could be done in a manner compatible with EU State Aid and other legal requirements.

My Department has also met the Coach Tourism and Transport Council, as well as CIE, on this matter. In more recent days, my Department has received a submission from the Coach Tourism and Transport Council.

Question No. 459 answered with Question No. 415.