Dáil Éireann Debate, Thursday - 3 March 2022
3. Deputy Darren O'Rourke asked the Minister for Transport the way that he is assisting the haulage sector with issues such as increasing fuel costs and the skills shortage in the sector; and if he will make a statement on the matter. [12312/22]
Amharc ar fhreagraIn respect of the previous question, I ask the Minister of State to afford an opportunity to the Irish Coast Guard Volunteers Representative Association to submit to that review of the CUAG. It would be helpful to take on board its perspective.
In this question, I am asking the Minister of State how she is assisting the haulage sector with issues such as increasing fuel costs and the skills shortage in the sector.
I thank the Deputy for raising the issues currently facing the transport sector and hauliers, in particular. The current spike in energy prices arises from the global recovery from the Covid-19 pandemic in conjunction with current international tensions and supply constraint issues. It is being witnessed across the European Union as well as many other regions. In order to mitigate the impact of fuel price increases for hauliers, the diesel rebate scheme offers a partial excise refund to qualifying operators.
In light of the challenges arising from Brexit and the uncertainty facing the sector, in budget 2020 the marginal rate of compensation at prices over €1.32, VAT inclusive, was doubled up to the maximum repayment rate of 7.5 cent per litre in recognition of the vital role of the haulage sector to the economy. In addition, businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs such as road diesel and other motoring costs.
The Minister, Deputy Ryan, and I met with the Irish Road Haulage Association, IRHA, on 10 December 2021 and again on 10 February 2022 to discuss the spike in fuel prices for hauliers and the need for the sector to make progress towards decarbonisation. Although no way forward was agreed at those meetings, discussions on these issues are ongoing at official level.
Similarly, the driver shortage is not a problem confined just to Ireland. It has been a growing issue across Europe and globally for several years. It is a multifaceted issue with a range of contributing factors, including the pandemic, which has clearly had a significant impact on many sectors.
In 2019, my Department established the national logistics and supply chain skills group, the key objective of which is to support the promotion of careers, skills development and sustainable employment in the logistics and supply chain sector. The group includes haulage and logistics sector industry representatives, education and training providers and all the relevant Departments. Last year, I asked the group to examine the HGV driver shortage.
The challenge here is clear. For hauliers, particularly small hauliers with several lorries on the road, the margins are squeezed unbelievably because of the increasing cost of fuel. What has the Government done in response? Based on the reply of the Minister of State, the answer is "Nothing". It has done nothing to respond to the runaway fuel prices. When I raised this with the Minister, Deputy Ryan, at the Oireachtas committee a couple of weeks ago in advance of the cost of living crisis, he said the Government is looking at this but it needs to be wrapped up in environmental measures. That is all we seem to hear from the Government. There is nothing more than that one line. There is no detail of what it means and certainly no response in terms of addressing the immediate crisis within the sector. Immediate action needs to be taken in respect of the rebate in the first instance. Is the Government going to do that?
I thank the Deputy. I am not taking away from the crisis for the sector, but just to outline what the Government has done, in budget 2020, arising from Brexit challenges, the marginal rate of compensation relating to the diesel rebate scheme was doubled. That increase has been maintained since. In budget 2022 there was an expansion of the accelerated capital allowance scheme for gas vehicles and refuelling equipment. There is also the alternatively fuelled heavy-duty vehicle purchase grant scheme of March 2021 which had a significant uptake within the sector. That is not to take away from the points the Deputy is raising in respect of the impact on the haulage sector. I will be the first to say there are no alternatives for hauliers at the moment. Decarbonisation is critical and they have said they are up for that. We are dealing with a crisis in fuel prices. There are extra pressures as a result of what is happening in Ukraine. I and the Minister, Deputy Ryan, are engaging with the sector and considering what can be done to provide reliefs for hauliers, who are under particular stress at the moment.
It is a matter of urgency at this stage. The ball is firmly in the Government's court in terms of coming up with solutions. The hauliers have put their hands up. They are crying out for support. The Minister of State mentioned the alternatively fuelled heavy-duty vehicle purchase grant scheme. Approximately 60 vehicles bought under that scheme are currently parked up because they are not affordable to run due to compressed natural gas, CNG, not being included in the rebate. It is a perfect example of a failure of an environmental transition. It seems to me there is a significant element of the Government burying its head in the sand in respect of what immediately needs to happen to support the sector.
I refer to the skills shortage. There is a four-step process involving employment permits, visas if required, residency permits and then all the other pieces. That process needs to be streamlined and the Minister of State knows it does. It is an international crisis but there are particular issues in Ireland on which we can do more.
On the final issue raised by the Deputy, the logistics supply chain group is working with all stakeholders to consider, and ensure movement is happening on, issues within the logistics and supply chain sector. That includes the skills shortage. It involves working with the third level sector and raising awareness of the apprenticeships in Institute of Technology Sligo and the technological universities in Cork and Dublin, as well as communicating the courses and careers that are available. That work is ongoing. We are working with the Department of Social Protection on recruitment drives to attract hauliers here and to encourage Irish people to engage in these apprenticeships.
The cost of fuel is a key crisis at the moment. I have been engaging constantly with the IRHA, which has been very proactive and constructive with me and departmental officials to try to find a solution. There is no lack of will but these things will take time. Given the impact of Covid and what is happening in Ukraine, the crisis is evolving. The Deputy can be assured that engagement will continue and we will try to find a solution to support the sector. That is something on which I am very much working.
