Oireachtas Joint and Select Committees

Wednesday, 2 April 2014

Joint Oireachtas Committee on Transport and Communications

Road Haulage Industry: IRHA and FTA

11:30 am

Mr. Eoin Gavin:

The problem is that haulage operators in the South will move to the North, elsewhere in the United Kingdom or even other European jurisdictions. Many have moved to eastern Europe. How can we solve this problem? There are two international issues, cabotage and the lorry road user charge in the United Kingdom. It is difficult to change what is happening in the United Kingdom; however, there is a British-Irish Parliamentary Assembly, as well as an Irish-UK trade body, which allows room for negotiation. Ireland and the United Kingdom could consider a model similar to what operates in the Benelux counties where, for example, operators in Belgium, Luxembourg, Holland and Denmark pay one charge when they operate in these four countries. They were part of the Schengen agreement, unlike Ireland and the United Kingdom. That system works quite well, as one may be in and out of each jurisdiction perhaps two or three times a day.

The Department of the Environment, Community and Local Government needs to come to the table to discuss the issue of motor tax before the budget. Road tax for an articulated truck is €4,000 compared to £650 in the North and €640 in Belgium. The Government could change the road tax structure immediately. It was stated last week that the Twenty-six Counties could do a deal with the North on a road tax, but they cannot to do a deal while the road tax structure for haulage vehicles dating from 1956 is still in place. The United Kingdom authorities have laughed at what happens here. In the Republic a truck is weighted when it is empty and the tax is based on unladen weight. Some three years ago we raised this issue with the joint committee which recommended that there was a need to change it, but we are still waiting for the Department of the Environment, Community and Local Government to come to the table. Mr. Eugene Drennan went through our very strong recommendations. As they would be cost neutral, they could be included in the budget, but we need to get to the table with the Department of the Environment, Community and Local Government. That could happen within these four walls.

Deputy Dessie Ellis stated Sinn Féin had tabled a motion in the Northern Ireland Assembly which we would very much support.