Dáil Éireann Debate, Wednesday - 28 March 2012
3Deputy Mattie McGrath asked the Minister for Transport; Tourism and Sport the measures he plans to introduce, if any, to assist the licensed Irish road hauliers who are struggling as a result of the price increases in fuel tax; and if he will make a statement on the matter. [17161/12]
Amharc ar fhreagraThe Deputy's question relates to fuel costs and their impact on the haulage industry, and measures being undertaken to assist the industry. I am aware that costs generally for haulage operators are increasing, and fuel is a major component of this. The price of fuel is driven mainly by external factors such as the cost of oil, refining costs, and exchange rates. All of these are driven by international factors and the Government has no control over them.
Taxes and fuel duties are a matter for the Minister for Finance, and are not ones in which I have any direct role. However, I should make the point that VAT is refundable to hauliers as a business expense. With regard to excise duty, I am aware the Irish Road Haulage Association, IRHA, has proposed a fuel rebate scheme to the Minister for Finance. I understand a working group between the IRHA and the Department of Finance has been established to discuss this matter and that two meetings have been held to date. However, I am not a party to these discussions, and the Deputy's questions on such would be best directed to the Minister for Finance.
I acknowledge the current economic climate creates difficulties for many sectors, including road haulage. In that regard I am seeking to work with the industry on those matters which fall under my remit and in which progress can be made. In this regard, following representations from the industry and after consultation with the relevant road safety bodies, I increased the speed limit on motorways for heavy goods vehicles to 90 km/h. Furthermore, I recently met with my UK counterpart, the Parliamentary Under-Secretary of State for Transport, Mr. Mike Penning, to discuss issues related to cabotage on foot of concerns raised by the haulage industry about enforcement by the UK authorities. I have also engaged with the industry on the issue of vehicle weights, and recently increased to 46 tonnes the maximum weight for six axle vehicles. This will come into force in July of this year.
In addition, a project is under way in the Department which will make some contribution to improving licensing arrangements and reducing operational costs when completed. The Department is working on a new computer system which will include a facility for online applications for haulage licences and amendments to licences by the end of this year. This should reduce the time, effort and costs required by operators to obtain the licensing documents and certificates they need.
I thank the Minister for the efforts he is making and I compliment him on the small measures he has taken. The huge cost involved is fuel and increases by previous Government and this Government through the carbon tax and the increase in VAT have made it almost impossible. Two or three hauliers flee the industry on a daily basis because of the huge cost of fuel. When they go abroad they fill up and we are losing tax and excise through this. It costs between €1,200 and €1,400 to fill a lorry's fuel tank which is frightening. Something must be done. The Minister met the Irish Road Haulage Association twice but it is not satisfied with the answers it received. They must compete with those who undermine them with laundered fuel and the rebate is just paying lip service. I welcomed the measures to be introduced in July with regard to weight and speed. However, fuel is a bigger problem and it is not true to say the Minister does not have control over its cost. Tax accounts for more than 50% of the cost of fuel.
I acknowledge the cost of fuel affects everyone and not only hauliers. It affects anyone in the general public who drives a car. It also affects the CIE companies and I have a good insight into what the balance sheets of a haulage firm looks like because I see the CIE accounts and I can see how the loss of the fuel rebate and increasing fuel costs hit it. The Minister for Finance did not increase excise on fuel in the budget; he increased VAT. The reason for this is the VAT is recovered by the haulage industry. The only increase the Government has added to the cost of fuel from the point of view of the haulier is a 1.6 cent increase through the carbon tax. All other increases in the past year are down to international factors beyond the control of the Government. We need to recognise that while fuel prices will increase and decrease it is a finite resource and there is an increasing demand for fossil fuels. The overall trend in the coming ten, 20 or 40 years will be upward and in 20 or 30 years time fuel will be extremely expensive. We must bear this in mind when future-proofing our policies and considering how we will move goods around the country.
The issue of fuel tourism is being studied by the Department of Finance. If it is proven we are losing revenue overseas because of people filling up in Belgium instead of Ireland the Department of Finance will consider a change in this regard. It is also important to point out that while transport companies and hauliers lose money and many are in severe debt nobody in business is losing €15 billion a year and has debts of €160 billion. The Government does, so any action it takes must be revenue neutral at the very least.
I do not accept that. As I stated, they are going out of business by the hour literally. The Minister said anyone who drives a car knows about the increase and we can see it in the price at the pumps. At best trucks do between 3 to 6 miles per gallon so it is a major cost. This is aligned with the fact they receive less income from the companies for which they work because everything is being cut. They are in a stranglehold. We must recognise this valuable industry and try to safeguard it against attacks from the fly-by-nights and rogues. One way to do this would be to deal with laundered diesel, which is a disaster. It is illegal and a fraud but still continuing. I hope the Minister for Finance will listen to the Irish Road Haulage Association because we will not have an industry if we continue like this.
The road haulage industry is extremely important and we will always have one of some size or another because it is how we get our goods to market and moved around the country. We will always have a haulage industry even if it is contracting and may contract more. The issue of laundered diesel is a matter for the Minister for Finance and I know he is taking an interest in it. The working group is making progress in this regard. Any solution we come up with must be revenue neutral and must bear in mind no matter what we do the trend in fossil fuel prices will be upward. We will change the way we run our country because of this.
