Brian Stanley
Ceist:346. Deputy Brian Stanley asked the Minister for Transport the plans his Department has to reduce fares on public transport outside major cities. [30936/22]
Amharc ar fhreagraPublic Transport
Ceisteanna (346)
Freagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares.
It is the National Transport Authority (NTA) that has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable. The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.
The provision of public transport services is heavily dependent on passenger fare revenue as it normally contributes about 65% of the operational cost. The remaining 35% of cost is covered by the PSO grant and the Department of Social Protection grant under the free travel scheme.
Prior to COVID-19, €287 million of Exchequer funding was provided for PSO services in Budget 2020; however, since 2020, additional funding has been required to continue to address the significant COVID impacts on public transport provision.
In 2022, I secured €538m to support PSO services including over €200m to address COVID expenses (i.e. loss of fare revenue, cleaning costs). Up to €12m will be provided as ongoing support for the licensed bus sector; while, over €15m has also been allocated to support Local Link regular service provision in rural Ireland.
In view of the importance of incentivising young people to use public transport, as part of Budget 2022 I secured €25m of funding to provide for the introduction of a young adult card (YAC) which will allow any person nationwide who is between 19 and 23 years old, to avail of an entitlement for discounted travel costs, and to increase the level of discount over and above the current student discount to an average of discount of 50% across all services, including city, intercity and rural services.
The YAC was launched on PSO services on the 9th of May, with over 1000 applications received by the NTA on launch day alone. The initiative will be broadened to include commercial operators later this year, with the aim to have it in place before the recommencement of third level colleges. This will not only promote modal shift in the transport sector among this age group but should also contribute towards a reduced reliance on private transport with associated benefit of transport emission savings.
In addition, as the Deputy will be aware a 20% average reduction is being introduced on PSO services as part of a suite of Government measures to help combat the rising cost of living. This fare reduction was applied to all services outside the Greater Dublin Area (GDA) from the 11th of April and nationwide from the 9th of May. The fare reduction will be in place until the end of the year and €54m in Exchequer funding has been secured to allow for the introduction of these discounted fares, this is in addition to the REV22 allocations.
The PSO programme represents a significant expenditure of taxpayers' money, and funding has increased in recent years to cater for additional services and growing capacity. Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance.
Therefore, I have forwarded the Deputy's specific question in relation to the reduction of fares on public transport outside major cities, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares.
It is the National Transport Authority (NTA) that has the statutory responsibility for the regulation of fares in relation to public passenger transport services. Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to , to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
Electric Vehicles
Ceisteanna (347)
Brian Stanley
Ceist:347. Deputy Brian Stanley asked the Minister for Transport the plans that his Department has to increase the number of electric vehicle charging points in counties Laois and Offaly. [30937/22]
Amharc ar fhreagraFreagraí scríofa
The Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle charging network over the coming years. A draft national charging infrastructure strategy for the development of EV charging infrastructure, covering the crucial period out to 2025 was published for consultation in March. The draft strategy sets out the government’s ambition regarding the delivery of a public EV charging network to support up to 194,000 electric cars and vans by the middle of the decade. Responses and submissions received as part of the consultation are currently being considered in the development of the final Strategy for publication.
The Strategy acknowledges the need for sufficient provision of fast or top-up charging at strategic locations such as along motorways, to enable longer EV journeys and alleviate lingering public concerns such as range anxiety.
There is also a need for a seamless public charging network that will provide for situations or instances where home charging is not possible such as on-street and residential charging, destination charging, and workplace charging.
Preparations are underway to establish Zero Emission Vehicles Ireland. This Office will play an important role in our transition to zero emission vehicles. It will co-ordinate measures to support the uptake of EVs and the rollout of charge point infrastructure including the development of a number of new infrastructure schemes.
€10 million was committed from the Climate Action Fund to support ESB investment in the charging network and this has leveraged a further €10 million investment from ESB, with the infrastructure to be in place by the end of 2022. This intervention alone will result in:
- 90 additional high power chargers, each capable of charging two vehicles - Seventeen high-power chargers distributed across 14 multi-vehicle hubs have been delivered as part of the programme to date.
- 52 additional fast chargers, which may replace existing standard chargers - This work is completed at 36 locations.
- 264 replacement standard chargers with more modern technology and with each consisting of two charge points - This work is substantially complete. 258 of the chargers have now been successfully replaced.
Further details on the progression of this project can be found at esb.ie/ecars/our-network/network-upgrades.
My Department continues to engage directly with stakeholders to ensure that a sufficient number of chargers, as well as a sufficient spread of charger types, will be in place to meet demand as we move towards our 2030 target of almost1 million EVs on the road.
National Transport Authority
Ceisteanna (348)
Catherine Connolly
Ceist:348. Deputy Catherine Connolly asked the Minister for Transport the number of complaints that have been received by the National Transport Authority in each of the years 2017 to 2021 and to date in 2022 in respect of refusals by taxi drivers to accept persons with guide dogs; the number of such complaints that were upheld in each of the years; the number of fixed payment notices applied in such cases in each of the years; the number of such cases which have resulted in prosecutions in each of the years in tabular form; and if he will make a statement on the matter. [30951/22]
Amharc ar fhreagraFreagraí scríofa
The regulation of the small public service vehicle (SPSV) sector, including complaints in relation to taxis, is a matter for the National Transport Authority (NTA) under the provisions of the Taxi Regulation Act 2013.
I have, therefore, forwarded your correspondence to the Authority for consideration and direct reply. Please advise this office if you do not receive a response within 10 working days.
Question No. 349 answered with Question No. 345.
Airport Policy
Ceisteanna (350)
Bernard Durkan
Ceist:350. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which the Dublin Airport Authority continues to ensure the smooth, effective and efficient running of the airport as passenger numbers increase in the aftermath of Covid-19 lockdowns; and if he will make a statement on the matter. [30960/22]
Amharc ar fhreagraFreagraí scríofa
The passenger experience at Dublin Airport recently has fallen far short of the service that passengers should expect at our largest State airport. The daa has statutory responsibility to operate and manage Dublin Airport including all the operations associated with security screening at the Airport.
Following the unacceptable level of service experienced by passengers on Sunday, 29 May, I re-established daily meetings with the CEO and senior management in the daa. I conveyed to the daa my disappointment and frustration at the situation and emphasised the importance of daa setting out a detailed plan to address the situation and the urgent need to restore passenger confidence in Dublin airport.
daa outlined their plan and operational changes in advance of the bank holiday weekend which included maximising the availability of staff resources; increasing the number of security lanes open at peak times; and improving queue management. While the bank holiday weekend was extremely busy, queues moved smoothly with no reports of flights missed.
I am continuing to engage with the daa on their resourcing plan and the passenger experience at Dublin airport and am emphasising the importance of the Airport reassuring passengers that they are doing everything they can to deliver an acceptable passenger experience for all those departing from the airport.
Though challenges remain, the daa has advised that the measures they have taken will substantially mitigate risk into the busy summer period where passenger numbers are expected to increase by a further 10%. Should unanticipated issues arise, daa now has appropriate escalation and triage mechanisms focused on ensuring no passengers will miss their flights.
Minister Ryan and I will continue to monitor the situation over the coming days and weeks and continue to engage with both the executive and chair of the daa to ensure that all that can be done is being done for passengers using Dublin Airport and to ensure that the reputational damage to the country from a business, travel, connectivity and tourism point of view is repaired.
Question No. 351 answered with Question No. 345.
Rail Network
Ceisteanna (352)
Bernard Durkan
Ceist:352. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which ongoing evaluation of the commuter rail service serving Maynooth, Kilcock, Leixlip, Confey, Hazelhatch, Celbridge and Sallins continues with a view to ensuring the continued availability of an effective, efficient and reliable commuter rail service that is sufficient to meet the needs of the growing populations of the various towns involved; and if he will make a statement on the matter. [30962/22]
Amharc ar fhreagraFreagraí scríofa
As the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.
The issue raised by the Deputy regarding the evaluation of the commuter rail service serving Maynooth, Kilcock, Leixlip, Confey, Hazelhatch, Celbridge and Sallins is an operational matter for Iarnród Éireann in conjunction with the National Transport Authority and I have therefore forwarded the Deputy's question to the company for direct reply.
Please advise my private office if you do not receive a response within ten working days.
Question No. 353 answered with Question No. 345.
Question No. 354 answered with Question No. 345.
Bus Services
Ceisteanna (355)
Bernard Durkan
Ceist:355. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which efficacy and convenience of the revised bus routes in Dublin and the greater Dublin area continue to be monitored; and if he will make a statement on the matter. [30965/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the monitoring of those services.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's question in relation to the monitoring of revised bus routes in the Dublin and Great Dublin area, for direct reply. Please advise my private office if you do not receive a response within ten working days.
Rail Network
Ceisteanna (356, 357, 358)
Bernard Durkan
Ceist:356. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which adequate car parking facilities are being planned to meet the requirements now and in the future adjacent to all railway stations throughout north Kildare; and if he will make a statement on the matter. [30966/22]
Amharc ar fhreagraBernard Durkan
Ceist:357. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which the electrification of the Maynooth and Leixlip rail line purports to be extended to Kilcock and beyond with particular reference to avail of extra car parking space in the Kilcock, Enfield area which is likely to become an essential in the future; and if he will make a statement on the matter. [30967/22]
Amharc ar fhreagraBernard Durkan
Ceist:358. Deputy Bernard J. Durkan asked the Minister for Transport if he will outline progress on proposals to provide for the electrification of the Dublin, Hazelhatch and Sallins lines with a view to ensuring that a convenient and readily available transport system in the future is capable of meeting expanded demands; and if he will make a statement on the matter. [30968/22]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 356 to 358, inclusive, together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including the DART+ Programme and its constituent projects.
Through the NTA, Iarnród Éireann receive Exchequer funding in relation to the provision of car parking at train stations on the heavy rail network in the GDA, including Counties Kildare and Meath.
Noting the NTA's responsibility in the matters raised, including progress on DART+ West and DART+ South West, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
Question No. 360 answered with Question No. 78.
A referred reply was forwarded to the Deputy under Standing Order 51
Question No. 357 answered with Question No. 356.
Question No. 358 answered with Question No. 356.
Question No. 359 answered with Question No. 345.
Transport Policy
Ceisteanna (361)
Alan Dillon
Ceist:361. Deputy Alan Dillon asked the Minister for Transport the estimated cost to provide free nationwide public transport to persons in full-time education; and if he will make a statement on the matter. [30989/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares.
It is the National Transport Authority (NTA) that has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable. The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.
The provision of public transport services is heavily dependent on passenger fare revenue as it normally contributes about 65% of the operational cost. The remaining 35% of cost is covered by the PSO grant and the Department of Social Protection grant under the free travel scheme.
Prior to COVID-19, €287 million of Exchequer funding was provided for PSO services in Budget 2020; however, since 2020, additional funding has been required to continue to address the significant COVID impacts on public transport provision.
In 2022, I secured €538m to support PSO services including over €200m to address COVID expenses (i.e. loss of fare revenue, cleaning costs). Up to €12m will be provided as ongoing support for the licensed bus sector; while, over €15m has also been allocated to support Local Link regular service provision in rural Ireland.
In view of the importance of incentivising young people to use public transport, as part of Budget 2022 I secured €25m of funding to provide for the introduction of a young adult card (YAC) which will allow any person nationwide who is between 19 and 23 years old, to avail of an entitlement for discounted travel costs, and to increase the level of discount over and above the current student discount to an average of discount of 50% across all services, including city, intercity and rural services.
The YAC was launched on PSO services on the 9th of May, with over 1000 applications received by the NTA on launch day alone. The initiative will be broadened to include commercial operators later this year, with the aim to have it in place before the recommencement of third level colleges. This will not only promote modal shift in the transport sector among this age group but should also contribute towards a reduced reliance on private transport with associated benefit of transport emission savings.
In addition, as the Deputy will be aware a 20% average reduction is being introduced on PSO services as part of a suite of Government measures to help combat the rising cost of living. This fare reduction was applied to all services outside the Greater Dublin Area (GDA) from the 11th of April and nationwide from the 9th of May. The fare reduction will be in place until the end of the year and €54m in Exchequer funding has been secured to allow for the introduction of these discounted fares, this is in addition to the REV22 allocations.
The PSO programme represents a significant expenditure of taxpayers' money, and funding has increased in recent years to cater for additional services and growing capacity. Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance.
Therefore, I have forwarded the Deputy's specific question in relation to the estimated cost to provide free nationwide public transport to persons in full-time education, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
Rail Network
Ceisteanna (362)
Alan Dillon
Ceist:362. Deputy Alan Dillon asked the Minister for Transport the latest estimated cost of completing the restoration of the western rail corridor between Claremorris and Athenry; and if he will make a statement on the matter. [30990/22]
Amharc ar fhreagraFreagraí scríofa
As the Deputy may be aware, a financial and economic appraisal in relation to the potential re-opening of Phases 2 and 3 of the Western Rail Corridor, commissioned by Iarnród Éireann and conducted by EY economic consultants, was published early last year and is available to view at the following link:
www.gov.ie/en/publication/1174d-review-of-western-rail-corridor-phases-2-and-3-athenry-to-claremorris/.
This report was subject to a short independent review commissioned by my Department and conducted by JASPERS, an agency of the EU/EIB, and that review is also available to view through the above link.
As the Deputy may also be aware, the Strategic Rail Review, which is being undertaken in co-operation with the Department for Infrastructure (Northern Ireland), will inform the development of inter-urban / inter-regional rail on the Island of Ireland over the coming decades. It will set the type of strategic backdrop to rail investment in our regions and on our mainline network that the JASPERS Review noted was lacking.
We need this type of strategic analysis to inform our consideration of specific projects and in that regard, the Review will consider the potential scope for improved rail services along various existing and potential future corridors of the network, and that scope will also include the potential afforded by disused and closed lines such as the Western Rail Corridor.
I expect to receive a final report in quarter 4 this year.
Airport Policy
Ceisteanna (363)
Bernard Durkan
Ceist:363. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which other airports can contribute to easing the through traffic at Dublin Airport, thus making it a more satisfactory experience for travellers to and from this country; and if he will make a statement on the matter. [31023/22]
Amharc ar fhreagraFreagraí scríofa
As part of my engagements on the security issues facing Dublin Airport, I held constructive meetings with Aer Lingus and Ryanair and discussed possible short to medium-term alleviation measures such as moving flights to other airports.
However, this was not considered a viable solution in the short term from the airlines’ perspective, given network operations, route planning and complex logistic arrangements such as crew, equipment and other ancillary services that are required to operate flights.
It is a matter for the airlines to decide to put on additional capacity at other airports.
Legislative Programme
Ceisteanna (364)
Noel Grealish
Ceist:364. Deputy Noel Grealish asked the Minister for Finance the current status of the Central Bank (Individual Accountability Framework) Bill 2021; the progress that has been made to date; when he expects the full details of the Bill to be introduced in the Houses of the Oireachtas; and if he will make a statement on the matter. [28861/22]
Amharc ar fhreagraFreagraí scríofa
The Central Bank (Individual Accountability Framework) Bill will drive positive changes in terms of culture, greater delegation of responsibilities, and enhanced accountability while simplifying the taking of sanctions against individuals who fail in their financial sector roles.
The General Scheme of the Central Bank (Individual Accountability Framework) Bill was approved by Government and published on the Department's website in July 2021 (www.gov.ie/en/press-release/4f16e-minister-donohoe-secures-agreement-to-draft-central-bank-individual-accountability-framework-bill).
My officials are working closely with the Office of the Parliamentary Counsel on the drafting of the Bill, which is at an advanced stage. It is a complex piece of legislation which has had to be extensively adapted to take account of the Supreme Court's decision in Zalewski v. Adjudication Officer and Others.
The Bill will provide greater levels of accountability, which will lead to better outcomes across the sector:
- Customers will benefit from financial service providers being fully accountable for the service and advice they provide;
- Employees of financial institutions will benefit from greater clarity as to their role and responsibilities, and will be empowered to speak up when they see failings;
- Firms and their shareholders will benefit through having senior executives personally accountable for their actions and inaction; and
- The wider economy and society will benefit from a more stable financial system by reducing the scope for reckless decisions.
Restoring public trust in the financial sector is essential, not least for the sector itself. The Central Bank (Individual Accountability Framework) Bill will provide an effective framework, and will help to reassure the public that meaningful cultural change is underway.
The aim of this regime is to allocate responsibility and prevent misdemeanour, rather than being punitive. This framework is designed to improve governance and the management of risk and outcomes for consumers.
I intend to bring the Bill to Government for approval to publish before the summer recess.
Tax Reliefs
Ceisteanna (365)
Louise O'Reilly
Ceist:365. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost of restoring tax relief for trade union membership on the same basis as professional association fees. [28896/22]
Amharc ar fhreagraFreagraí scríofa
Tax relief for Trade Union subscriptions was previously provided for under section 472C of the Taxes Consolidation Act 1997 (TCA). The relief was introduced in 2001 and abolished from 2011 onwards.
Professional membership fees are deductible under section 114 TCA where those fees are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
A review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on Budget day 2016. The review may be found at the following link: https://assets.gov.ie/181475/91f597c2-bd98-41d8-998e-19f14c099eea.pdf.
In respect of the relief for trade union subscriptions, the review concluded that:
"... analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight ."
In 2009 the Commission on Taxation recommended that the relief be discontinued as “membership of a trade union is likely to be influenced by the benefits of membership and may be a condition of employment. The value of the tax credit is unlikely to be a factor. Having regard to the significant element of deadweight associated with the tax relief, we consider that the relief should be discontinued” .
In 2020, my Department carried out a further analysis which took stock of where matters stand in relation to the issue of tax relief for trade union subscriptions and set out a number of policy options for consideration. This exercise suggested that, based on certain assumptions about numbers of beneficiaries, the measure could cost at least €36.9 million if reintroduced at the same level of support as existed in 2010. However, it also drew attention to the potentially significant deadweight element which would accompany the measure. That analysis was published with the 2020 Tax Strategy Group papers at the following link: assets.gov.ie/86995/006fad3c-ebb5-4b0e-b067-92f8102d6e43.pdf.
On the particular issue of the tax treatment of trade union subscriptions versus the tax treatment of fees paid by individuals to professional bodies, the review concluded that there is a fundamental difference between membership of a professional body which is required to practice a profession and membership of a trade union, which is essentially, a personal choice. A tax deduction for fees paid to professional bodies is available where, for example, there is a statutory requirement for membership of a professional body or where there is a requirement for a practicing certificate or license. A person cannot be refused the right of employment for failure to join a trade union, however, a person can be refused the right of employment as a solicitor, for example, if they fail to hold a practicing certificate.
I am advised by Revenue that there are no current data available from tax returns on the number of taxpayers with union subscriptions or the cost of their individual union subscriptions. Therefore, there is no basis for Revenue on which to estimate a cost for the measure (whether on the previous flat rate basis or on the same basis as professional fees). However, the following table sets out details of the cost of the tax relief for trade union subscriptions in the seven years immediately prior to its end, including 2010 (in which year, the measure cost some €26 million):
|
Year |
Cost (€ million) |
No. of Claims |
|
2004 |
10.7 |
248,300 |
|
2005 |
11.8 |
272,100 |
|
2006 |
19.2 |
294,300 |
|
2007 |
20.7 |
316,300 |
|
2008 |
26.4 |
341,900 |
|
2009 |
26.7 |
345,800 |
|
2010 |
26.0 |
337,500 |
Tax Code
Ceisteanna (366, 367, 368, 369)
Pearse Doherty
Ceist:366. Deputy Pearse Doherty asked the Minister for Finance the minimum level of excise that may apply to petrol under the European United Energy Directive; the rate that currently applies; and the cost of reducing the current rate to the minimum rate from 6 June 2022 until 12 October 2022. [28919/22]
Amharc ar fhreagraPearse Doherty
Ceist:367. Deputy Pearse Doherty asked the Minister for Finance the minimum level of excise that may apply to diesel under the European Union Energy Directive; the rate that currently applies; and the cost of reducing the current rate to the minimum rate from 6 June 2022 until 12 October 2022 if the diesel rebate scheme were suspended during the same period. [28920/22]
Amharc ar fhreagraPearse Doherty
Ceist:368. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the diesel rebate scheme in the period from 6 June 2022 to 12 October 2022; and the estimated savings if it were suspended during that period. [28921/22]
Amharc ar fhreagraPearse Doherty
Ceist:369. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of reducing excise duty on kerosene used for home heating oil in the period from 6 June 2022 until 12 October 2022. [28922/22]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 366 to 369, inclusive, together.
Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in the Finance Act 1999 (as amended). The Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. In complying with ETD minimum rates, total MOT rates are taken into account.
The minimum MOT rates that may be applied under the ETD, as well as the MOT rates (non-carbon and carbon components) currently in place, are set out in the following table.
Current MOT rates per 1,000L & Corresponding ETD minimum rates
|
Fuel Type |
ETD minimum € |
MOT non-carbon € |
MOT carbon € |
Total MOT € |
|
Petrol |
359.00 |
371.11 |
94.87 |
465.98 |
|
Diesel |
330.00 |
295.64 |
109.74 |
405.38 |
|
Kerosene |
0.00 |
0.00 |
103.83 |
103.83 |
I am advised by Revenue that the estimated costs of reducing the current MOT rates for petrol, diesel and heating kerosene to the respective ETD minimum rates, for the period from 6 June 2022 until 12 October 2022 are set out in the below table. These estimated costs assume no behavioural change in response to such a reduction.
Cost of reducing MOT Rates to ETD Minimum
|
Fuel Type |
MOT €m |
VAT €m |
Total €m |
|
Petrol |
35.4 |
6.6 |
42 |
|
Diesel |
97.6 |
5.7 |
103.3 |
|
Kerosene |
23.5 |
2.8 |
26.3 |
Finally, I am advised by Revenue that the estimated cost of the Diesel Rebate Scheme, during the period from 6 June 2022 to 12 October 2022 is €11.6m, based on volumes on which claims were received by Revenue in 2021.