Oireachtas Joint and Select Committees

Thursday, 8 November 2018

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

Finance Bill 2018: Committee Stage (Resumed)

10:00 am

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

It is welcome that the Minister is open to reviewing the scheme. As I said, there are lot of things we may have to do, depending on the outcome of any Brexit deal. As I have argued, unless there is a complete reversal of the decision taken by the British people two years ago, there is no possible deal that will not have an impact on the haulage sector. In my wildest dreams I cannot envisage an outcome that will not have some impact. The question is how significant it will be.

I do not want to rehearse the matter, but there is an issue about the drawdown. First, for several years the scheme was of no benefit to hauliers. For about two years after it was introduced there was a benefit. Because the floor had been set at €1 without VAT or €1.23 with VAT, there was no cost to the Exchequer for two years as the price of diesel was below that figure. The scheme has only started to be of benefit in recent times. The benefit is currently in the region of 1.8 cent per litre, but I am subject to correction. Even with that figure, hauliers who travel internationally fill up abroad. I talk to hauliers and know people involved in the industry, including family members, and they tell me that that is what is happening. The rebate schemes available in other jurisdictions are much more generous than for what we are arguing.

I am not arguing for that. The industry wants two things. It wants the floor decreased to 85 cent and the rate increased to 15 cent, which would cost €22 million. I am suggesting we do just one of those - reducing the floor - and it would amount to less than a quarter of the amount requested by the industry. It is the best way to capture more people. It gives a small bit of benefit which I hope would offset some of that fuel tourism in the first place.

There is the matter, which I will mention again, of equalisation between diesel and petrol. I agree with the Minister about expectations and I have never heard an expectation created about this. The only expectation I understood relating to this would be that it would exist to offset an equalisation measure. What is the Minister's opinion on equalisation of diesel and petrol? It is a matter of concern and it would require mitigating factors for the industry.

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