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

I thank the Deputy. This is an issue we have discussed in other fora and the Deputy has acknowledged the reasons we have put forward as to why it was not possible to include oil and LPG as part of TBESS. I will briefly recap a couple of those reasons. It is not possible to calculate oil and LPG usage in the same manner as with electricity and metered gas mains. For energy sources such as oil and LPG, it would not be possible to accurately determine the actual usage for each claim period, the relevant unit price for each claim period or the increase in that unit price and usage over the same reference period. LPG is supplied to customers in three different ways. Metered LPG is measured in cubic metres, bulk LPG is measured in litres and cylinder LPG is measured by weight. Kerosene oil is delivered by the litre. It would not be possible to accommodate such diversity within the TBESS system, the key feature of which is to treat like with like. In addition to using different methods to supply LPG, suppliers also use different billing methods depending on the method of supply with bulk customers receiving bills on an irregular basis triggered by delivery dates while others receive balance forward bills and smaller customers are invoiced for cylinders purchased directly from LPG stockists. This irregularity would make it difficult to calculate the difference in price from pre-war prices. Adding to the complexity, LPG prices vary by volume. Bulk customers pay a lower average price per litre on deliveries over 3 tonnes compared with users buying less than 3 tonnes.

My predecessor engaged with Revenue when TBESS was being designed to see if oil and LPG could be included. I re-examined the issue and engaged again directly with the Revenue Commissioners, whose clear advice and strong recommendation was not to include them. While the final decision does, of course, rest with the Minister, on issues such as this, I am always guided by the expertise and experience of the Revenue Commissioners. However, as a Government, we have decided that there will be a scheme. There will be grant support. This is being led by the Department of Enterprise, Trade and Employment. The Minister for Enterprise, Trade and Employment, Deputy Coveney, is working on this issue. He had meetings with his officials yesterday, for example. I hope the Department can bring forward details as quickly as possible but the Department of Finance is not the lead Department in respect of the grant scheme and it is therefore not an issue to be legislated for within a tax Bill.

With regard to the cost of the scheme, as Deputy Doherty will know, there is adequate headroom within the Department of Enterprise, Trade and Employment Vote to provide for the cost of a grant scheme for businesses that rely on oil and LPG. That is how it will be funded but I do not have an estimate of the number of businesses that might avail of such a scheme.