Oireachtas Joint and Select Committees

Tuesday, 17 November 2020

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

Finance Bill 2020: Committee Stage (Resumed)

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

I am aware of the matter. I thought the Deputy's comments were relevant to the amendment proposed, which is amendment No. 139. I am aware of the points made on the matter by Deputy Murphy.

I made changes last year to the operation of the diesel rebate scheme, where we doubled the marginal rate of compensation that is available if and when the retail price of diesel goes above €1.07. I know the point being made by Deputy Murphy is that we should have incentives in place to encourage the transition into low-carbon trucks and engines. I understand that in response to her point, the Department of Transport is currently working on the design of a grant to facilitate that. The point she makes is fair, as there are grants and incentives available for change with private vehicles, for example. For commercial vehicles, the kind of incentives that are available are not as comprehensive as they should be.

As I stated, the Department of Transport is currently working on a grant to help bridge the cost differential between conventional and alternatively fuelled vehicles. I understand it is aiming to make this grant available next year. Perhaps the main area of engagement should be on what the grant will be and how it will operate. This is so we can move to a place where the change in vehicles for the heavy duty sector would have effective incentives in place. We want to see a change in engine there just as we want to see it happen with other vehicles.

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