Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I believe we will switch to all battery electric vehicles within a decade. I see all new cars being such a mode for a variety of reasons. They cost less to run. They are much simpler in engineering terms. One benefit of battery electric versus plug-in hybrid electric is that there are far fewer moving parts and components. With the plug-in hybrid system, there are basically two drive trains. There is the electric drive train and still the combustion engine in locations where you do not have the full battery car. In effect, the first option is a better car, with better engineering, a lower cost to produce and a lower cost to run. It has a better emissions profile. Obviously we prefer for people to drive plug-in hybrids to fossil fuel cars, but the emissions reductions from 100% battery electric are quantitatively better.

The other benefit is that if we can switch our entire car fleet, and indeed van and truck fleet, which I think will all happen, with everything including trucks being electrified, we then have a demand for electricity which helps us to provide a stable grid and back-up power. We will have to switch towards charging systems so the reverse flow can take place. That gives us significant benefits in running a renewable electric system. For Ireland particularly, since our distances are not too long and our population is very distributed, with a significant percentage of houses with driveways where it is easy to plug in, with a balancing capability when there is an electric transport fleet, it is absolutely in our interest to make the switch. It has slowed down in the last six months. I expect it to come back.

I will answer the Deputy's question on second-hand vehicle value. I am no expert on this so I bow to the SIMI and others. I know from talking to some garages that I am in touch with that prices were high up until about a year ago and then suddenly dropped. That sudden change has probably spooked many people. We will have to look at measures to support and incentivise battery electric vehicles, particularly in the commercial fleet side, including the likes of benefit-in-kind and other measures. That may help us to deliver a more stable second-hand market and make sure that section of the industry switches over too.

As we talked about earlier, charging infrastructure is key. Regarding early interventions, we have significant supports. There is not just the grant, which went from €5,000 down to €3,500, but also VRT, tax and other benefits which equate to something like roughly €5,000 or €6,000, as I recall. I do not see any immediate further reductions in the electric vehicle grant. I would be interested to hear what the Deputy would do. My own instinct would be to leave be what is there for the moment until we get the sales back up and have a period of stability.

I see that the prices of the cars have come down quite significantly. It is uncertain what will happen there because of some of the tariff policies the European Commission is looking at. My view, which I state in Brussels as well as here, is that we should be wary of trying to protect European car industries through a tariff approach. European exports to the likes of China are not insignificant and it is such a complicated connected market that I do not think it would protect the European car industry. The best way of protecting it is to be better at making electric vehicles, particularly at the entry point, and getting them to be smaller and lighter.

It is difficult with electric vehicles but broadly there should be lighter cars where the production price is reduced to make access to the market easier. My view is this is how the European car industry will be saved and not from behind trade walls. In the meantime we should maintain the broad supports while looking for some additional supports, particularly in the fleet area.