Oireachtas Joint and Select Committees

Wednesday, 6 November 2019

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

Finance Bill 2019: Committee Stage (Resumed)

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

On budget day, there was a warm welcome from those in the haulage sector for the Minister's announcement that he is providing additional relief through the diesel rebate scheme to hauliers in order to compensate the sector for the increased cost of fuel. When the Finance Bill 2019 was subsequently published, it was examined by the sector. It is fair to say, that it is of the view that the Bill does not provide for additional relief for licensed hauliers in respect of the increased cost of fuel following budget 2020. The sector claims that under the formula proposed diesel prices would need to rise by an additional 5 cent before the full relief is granted to licensed hauliers under the diesel rebate scheme in respect of the increases costs arising from the imposition of the carbon tax increase.

The sector has drawn up a number of proposals. I am aware that representatives have been in touch with the Minister and the Department directly proposing that the rebate scheme should be triggered at a rate of 60% of each cent above €1, as opposed to the current threshold of €1.07. They have also proposed an alternative in regard to future-proofing the relief, namely, that to achieve the maximum rebate possible the scheme it should rise to 9.1 cent to ensure that hauliers continue to receive additional relief. The sector is disappointed with what has emerged in the Finance Bill. Hauliers do not believe it will provide the relief that was promised on budget day.

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