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

It is the case that under the legislation, as was flagged, VRT relief on hybrid vehicles was to end at the end of 2019. It was also understood, however, that in parallel with that, there would be a full move to WLTP in 2020. Both changes would be made at the same time but that is not what is happening. While the Department or Revenue might have data to contradict me, my understanding is that the majority of the hybrid vehicles in the market will not qualify for VRT relief in 2020, which will mean their price will rise, in some cases significantly. The relativity between the price of a hybrid vehicle versus that of a diesel vehicle has moved in an adverse manner for the former in 2020, as a result of what is now a one-year issue because we will stick with the old system in respect of emissions for one more year.

The Minister has pitched the limit at the level of 80 g/km and indicated that hybrid vehicles are perhaps not as environmentally friendly as has been portrayed. My understanding is that petrol and diesel vehicles, typically, have far higher emissions than 80 g/km, although if the Minister has data that diverge from that, I would be interested in hearing them. There will be a change to one area in 2020, which will lead to the cost of hybrid vehicles rising relative to that of diesel vehicles, and it will happen in advance of the more comprehensive change we all know needs to happen in 2021, when WLTP will be fully implemented, as it will have to be.