Tim O'Malley (Limerick East, Progressive Democrats)

This scheme, which originated in 1968, provides valuable tax concessions for disabled drivers and disabled passengers. Over time the benefits were extended and the scheme was put on a statutory basis. The scheme is open to persons, drivers and passengers, with disabilities who have obtained a primary medical certificate. To qualify for a medical certificate, the person must be severely and permanently disabled and meet one or more of a number of specific medical criteria relating to the use of upper and lower limbs.

Possession of a primary medical certificate entitles a person to benefit from the following reliefs: remission or repayment of vehicle registration tax, VRT, and a refund of value-added tax, VAT, on the purchase of a vehicle; a refund of VAT on the cost of adaptation of a vehicle up to a maximum of €9,523 for a disabled driver and €15,872 for a disabled passenger; repayment of excise duty on motor fuel used in the vehicle for the transport of the disabled person, subject to an annual maximum of 600 gallons — this works out at approximately €1,016 per annum at current excise rates; and exemption from the payment of annual road tax payable to local authorities. Annual ongoing relief also includes the possibility of changing a car every two years. The same tax reliefs are also available to qualifying organisations for qualifying activities, that is, the transport of those disabled who are covered by the scheme.

The cost of the scheme has increased significantly in recent years. It amounted to approximately €36 million in 2003, compared with just under €6.5 million in 1996. It is estimated that 8,750 people with disabilities participate in the scheme. The average claim for VRT and VAT relief amounts to approximately €5,250. This is what it is worth, on average, on an annualised basis to an individual beneficiary.

The Minister for Finance has been informed that up to 360,000 persons in Ireland could be regarded as disabled. These include persons with medical conditions other than those covered by the scheme and those with medical conditions covered by the scheme. The substantial tax benefits of the disabled drivers and disabled passengers scheme make for considerable interest in, and desire to be admitted to, the scheme.

The scheme was reviewed by an interdepartmental review group chaired by an official from the Department of Justice, Equality and Law Reform. In addition to representatives from that Department, the group comprised representatives of the Departments of Finance, Health and Children and Social and Family Affairs and the Office of the Revenue Commissioners. The group was convened to review the operation of the scheme following a meeting in April 1998 between the Ministers for Health and Children and Finance and the Minister of State to discuss problems with the operation of the scheme. The group examined all aspects of the scheme, including the qualifying medical criteria. A copy of the report of the group, containing recommendations for changes to the scheme, was received by the Department of Finance in September 2002.

The Deputy will appreciate that the report of the review group is complex. As part of its deliberations, the group heard oral submissions over a period of five and a half days. In addition, the group received more than 260 written submissions from interested parties. Many factors have been taken into account by the review group in the formulation of this report. The Minister for Finance is considering the issues raised in the context of the objectives to be met and the best use of resources. The issues are difficult and many different, and some conflicting, viewpoints have to be taken into account. It is envisaged the report will be published once the deliberative process is fully completed.

The great interest shown by various groups in seeking access to the scheme is understandable. The benefits are significant on an individual basis. Nevertheless, it is important we review how the scheme can be operated in a fair, focused and manageable manner within available resources for those whom it can most effectively assist. I trust that the House shares this goal.

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