Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The amendments concern access to the disabled drivers and disabled passengers scheme which plays an important role in increasing the mobility of citizens with severe physical disabilities. The scheme is a significant tax expenditure, costing approximately €65 million in taxes forgone and grant payments in 2016. This figure does not include the revenue forgone to the local government fund in the relief from motor tax provided for members of the scheme. In accordance with SI 353 of 1994, registered charitable organisations are eligible to become members of the disabled drivers and disabled passengers scheme where they are chiefly engaged in the care and transport of disabled persons who have obtained a primary medical certificate.

The effect of the amendments, in removing the word "chiefly", would be to significantly broaden access to the scheme for charitable organisations. This could open up the scheme to organisations that are not primarily involved in the care and transport of persons with disabilities. As such, it could result in a poorly targeted scheme and also a large additional liability for the Exchequer. Deputy Michael McGrath will be aware that the criteria for the scheme are necessarily precise and while this means that many persons with more general mobility disabilities do not qualify for the scheme, given its scale and scope, I have no plans to change the eligibility criteria. The Deputy will also be aware that the Minister announced in the budget the introduction of a new VAT compensation scheme for charities in recognition of the work undertaken by the charities sector. This will provide an avenue of relief for such charities.

I am not entirely comfortable with that reply. If Deputy Michael McGrath withdraw the amendments, I will consult the Department on the issue with a view to possible changes being made in the regulations. I will do the best I can to improve the scheme as it stands.