Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The diesel rebate scheme was introduced by my predecessor in 2013 in recognition of the high price of fuel at that time and its adverse affect on the transport sector. The scheme offers a partial excise refund for qualifying hauliers and bus operators based on the retail price of diesel. The repayment amount is calculated based on the average price at which auto diesel is available for purchase during the repayment period.

Relief can be claimed when the retail price reaches €1.23, including value added tax, VAT, up to a maximum rate of 7.5 cent when the price reaches €1.54. Despite recent increases in international fuel prices, with a cap of €1.54, the scheme continues to compensate hauliers for such increases. The current scheme offers sufficient protection against rising costs and the effect on competitiveness and, as such, I do not intend to conduct a review of it, with a view to amending the floor price. I met representatives of the sector and it appears that there was an expectation that the scheme would change. That expectation did not come from me or my Department. I cannot be in a position where expectations are created and imposed on me and, when I do not make particular changes, I am expected to fix the issue. I never gave an indication that the scheme was going to be changed. In the engagement my Department has had with the sector we have always been very clear that the scheme is in place. The drawdown is still considerably lower than we expected.

The Deputy asked whether there was still diesel tourism. I expect there is. However, the plan we have in place is a proportionate response to the challenges the sector is experiencing. When I met representatives of the sector, I agreed to review the scheme in the context of the Finance Bill and the budget next year. I am happy to have a look at where we stand and engage with the sector. That is the appropriate way to look at the scheme. As I said, the drawdown is lower than we expected. The pricing and capping of the scheme are still within the realm of what I believe works for the industry. There are many aspects at which we will have to look if things really begin to change next year and we experience many acute difficulties as a result of Brexit. In meetings with sector representatives I have said we will review the scheme in the context of the budget next year, like any other scheme we have in place. In the process of reviewing it, I will meet and engage with representatives of the sector who are aware of my views on the issue. That is the best way to deal with the matter.