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

I thank the Deputies for their remarks. I agree with them that the haulage sector and the ability to move goods are integral to how our economy functions. It is in recognition of this that I announced in my budget speech that the diesel debate scheme was being enhanced. The marginal repayment rate will increase from 30% to 60% when the retail price is over €1.07, exclusive of VAT, up to a maximum repayment rate of 7.5 cent. This measure will apply to fuel purchased from 1 January 2020. This represents a significant enhancement of the terms of the scheme.

This represents a significant a significant enhancement of the terms of the scheme. For example, the current average price of a litre of diesel is €1.09 which, if used as the average price under the current scheme, would entitle qualifying operators to a rebate of 2.8 cent per litre. Under the enhanced scheme, qualifying operators would be entitled to a rebate of 4.4 cent if an average per litre price of €1.11, exclusive of VAT, were to be used as the basis for calculating the rebate. In other words, in the example outlined, an additional 1.6 cent to the average price of a litre of diesel would be matched by the additional rebate amount.

This enhancement is intended to be a temporary support measure. The scheme was reviewed in the tax strategy papers this year where it was noted that it has been subject to criticism from an environmental perspective. I believe the commitment I made on budget day has been delivered through the change in the scheme. I will circulate to Deputies our view on how the change in the scheme compensates hauliers for the higher carbon price. We believe that to be the case. The change in the carbon pricing is being used to see if more fundamental changes are merited or needed in the scheme. I do not believe they are, but I will circulate a note to Deputies containing a worked out example of the change in the enhanced scheme and they might consider it before Report Stage.