Alan Dillon
Ceist:14. Deputy Alan Dillon asked the Minister for Transport the measures that are in place to help with transport costs. [34594/22]
Amharc ar fhreagraWednesday, 29 June 2022
Ceisteanna (14)
Freagraí scríofa
As the Deputy will be aware, transport is a derived demand - one that is driven by economic and social need.
A cost-efficient sector, including affordable and accessible public transport services, is vital to a functioning economy. In this context, a number of measures have been taken to ensure services remain affordable.
In Budget 2022, my department secured approximately €538m of funding for Public Service Obligation (PSO) and Local Link services. €25m was also provided for the introduction of a young adult card (YAC). This new measure will enable any person aged between 19 and 23 years old to avail of an average fare discount of 50% across all public transport services, including city, intercity and rural services.
As part of a suite of new measures introduced by Government to help combat the rising cost-of-living being experienced throughout the country, a 20% average fare reduction on PSO services has also been introduced. These discounted fares, which will benefit the hundreds of thousands of people across the country who use PSO public transport every day, will cost €54m and will be in place until the end of 2022.
I would like to see the 20% fare reduction continue into 2023; however, I am acutely aware of the competing pressures across the system and the finite Exchequer resources. The funding implications of all measures must be considered in the round so I will work closely with Minister McGrath and other Government colleagues in the context of the 2023 Estimates process to see what we can do with regard to supporting public transport services.
In relation to the road haulage sector, on 15 March the Government approved an emergency support measure – the Licensed Haulage Emergency Support Scheme (LHESS) - to address cost pressures arising from current high fuel prices. The Scheme provided support of €100 per week, for eight weeks, for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022. Over €15 million has been paid out under the Scheme to nearly 3,000 operators.
In addition to the LHESS and in recognition of rising fuel costs for all citizens and businesses, on 10 March the Government introduced an excise duty reduction of 15 cent per litre of diesel, initially introduced until end August but later extended out to Budget Day.
The Diesel Rebate Scheme (DRS) remains available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. There were around 1,000 claimants for DRS in 2021 and this has likely increased in 2022.
Furthermore, tax debt “warehoused” during the COVID crisis remains at an interest rate of 0% for the remainder of this year.
Finally, in relation to the impacts of increasing biofuel rates on fuel prices, an offsetting policy measure of a 1c per litre reduction in the NORA Levy and a 1c per litre reduction in excise has been introduced in agreement with the Minister for Finance. The excise relief takes effect from 1 April 2022 and will be in place until Budget Day in October 2022.