Oireachtas Joint and Select Committees

Wednesday, 11 July 2018

Committee on Budgetary Oversight

Summer Economic Statement: Discussion

3:30 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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On the Deputy's broad point, what is now apparent to all of us is that the purchase of certain kinds of vehicles and tax policy for these vehicles were based on deceit. Expectations of the performance of vehicles were created which turned out not to be the case. This is a serious problem for the environment and for governments across Europe in terms of how we will respond to it, not to mention for the families and citizens who have these cars. I have not made any decisions on taxation in response, particularly on something as sensitive as how we equalise diesel and petrol or change taxation on diesel. No decisions have been made but any decision in that space can only be implemented gradually. Many citizens bought diesel cars on the basis of expectations that we now know were not true. I can only assume there has been some form of impact on the price of diesel vehicles given everything we know now.

In regard to the take-up of electric cars, a large suite of different options and supports is available. In the most recent budget we made further changes to encourage greater supply and purchase of these vehicles. One thing that will make a difference is that as the travel capacity of these vehicles begins to increase, more and more citizens and families will want to own them. That is now happening because technological developments mean they are now capable of travelling further.

The European Commission's views on the rainy day fund were offered before we published legislation on how the fund will operate. I hope, now that we have published the legislation, that the Commission's concerns about the perceived vagueness of how it will work have been addressed.