Oireachtas Joint and Select Committees

Thursday, 10 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage (Resumed)

10:00 am

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael) | Oireachtas source

The exemption also includes passes for travel on commuter ferry services which operate within the State in respect of journeys which begin and end in the State. The exemption does not extend to car parking charges which are purchased as part of a combined travel pass which includes car parking charges, nor does it include ad hocparking charges, such as daily charges.

While I could agree to prepare a report as the Deputy suggests, I am not at all convinced of the merits of the underlying proposal. If I am correct in assuming that the Deputy wants individuals who have a travel pass, that is the taxsaver travel pass, to get a further tax relief for car-parking, then this would be an additional benefit for someone already getting a significant tax relief on his or her commuting costs. In addition, it would be very difficult for the Revenue Commissioners to administer such a scheme; the existing travel pass or tax saver scheme is transparent in that the providers are listed in the legislation and the cost of the pass at the start of the year is known. On the other hand, parking facilities are provided by a multitude of different providers, from multi-storey to waste ground, and at various rates.

I would be concerned also that to extend the scheme in the manner proposed by the Deputy would perhaps have the unintended effect of increasing the distance driven by commuters before they switch to public transport. Also, incentivising use of the car would appear contrary to the intention behind the travel pass legislation which was introduced in budget 1999 as a traffic-related measure. In his budget speech at the time, the then Minister, Mr. McCreevy, stated that the scheme was being introduced "to address the growing traffic problem in urban areas". Finally, I would note there could also be difficulties in terms of minimising any opportunity for its misuse. For example, if an annual parking fee was paid, how would the Revenue Commissioners know who was using it?

For all these reasons, I would be reluctant to contemplate an extension on the lines proposed by the Deputy and I am not disposed to accept this amendment. However, I would point out that people should be aware that the travel pass taxsaver scheme and the cycle-to-work scheme are not mutually exclusive. While this option would not be suitable for all, it may be of practical value to some commuters. The departmental advice is leave the car at home, buy a bike and-----

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