Oireachtas Joint and Select Committees

Tuesday, 3 July 2018

Committee on Budgetary Oversight

Environmental Impact of Fiscal Instruments: Discussion (Resumed)

4:00 pm

Ms Verona Murphy:

All the different groupings did estimates. I do not want to name anybody but it is well known in the sector. We have never missed a Brexit forum and the estimate is that the reduction would be 20% in the event of a hard Brexit.

What I am here to discuss today is the combined effect of excise equalisation on diesel and petrol and Brexit. European Union countries such as Belgium and France already have a fuel rebate scheme in place. This is known as an essential user rebate. The essential user is somebody such as a haulier who does not have an alternative. I receive texts every day about this. In Belgium, for example, which has a similar if not identical excise regime to Ireland, the rebate to a haulier on the price of diesel is 22 cent per litre. If one equalises the system, the rebate in Ireland is approximately 0.05 cent, less than 1 cent. Already a Belgian haulier, operating in the European mainland has an advantage of 22 cent per litre of fuel over us. If one adds diesel equalisation, it contributes another 12 cent on top of that.

Our environment will become absolutely untenable. It is not sustainable. Without equalisation we need the fuel rebate in the next budget. With equalisation, that must also be catered for within the realm of the fuel rebate because the essential user does not have an alternative. Enprova, the body charged with implementing obligations under Article 7 of the energy efficiency directive of 2012, has stated that diesel is the cleanest and most efficient fuel for long distance trucks and trucks of 40 tonnes capacity. This is the expert body saying this. The IRHA is saying that hauliers are under significant pressure, none of which we can do anything about. Brexit is driving much of this pressure through currency fluctuation. The environment in which IRHA members are operating is very stressful.

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