Dáil debates

Tuesday, 30 May 2006

8:00 pm

Photo of Pat GallagherPat Gallagher (Donegal South West, Fianna Fail)

I thank Deputy Crawford for raising this important issue relating to the disabled drivers' and disabled passengers' tax concessions scheme. The Minister for Finance, Deputy Cowen, who had another engagement in the west tonight, asked me to convey his apologies.

The scheme dates back to 1968 when relief from road tax was made available, under legislation, for persons with a disability meeting specific medical criteria. Since then, the scheme has been extended and amended on many occasions.

The statutory basis for the current scheme is section 92 of the Finance Act 1989. The principal regulations are from 1994, with subsequent amendments. Access to the scheme is on the basis of six medical criteria which are set out in section 3 of the 1994 regulations.

A person who qualifies under the criteria set out in section 3 is issued with a primary medical certificate by the senior medical officer of the local Health Service Executive administrative area. Possession of this certificate qualifies the holder to claim the benefits of the scheme, either as a qualifying driver or a qualifying passenger. Where the medical certificate is not granted, the legislation provides for an appeal procedure operated by the Disabled Drivers Medical Board of Appeal, an independent body, whose decision is final. From my experience as a Deputy in my county, I am aware that it had a long waiting list until recently but I would hope it has shortened somewhat since. The board's members are appointed by the Minister for Finance on the advice of the Minister for Health and Children. The regulations also provide for inclusion in the scheme of non-profit organisations involved in the transport of persons with a disability.

The benefits of the scheme for qualifying persons are set out in the legislation. They consist of the following. First, there is full relief in the year of purchase of an adapted vehicle of VRT and VAT, subject to limits of €9,525 for a qualifying driver and €15,875 for a qualifying passenger or organisation. In the case of passengers, there is a requirement that the adaptation to the car must amount to at least 10% of the cost of the car. In the case of both drivers and passengers, the vehicle must be retained for at least two years. Second, there is relief from excise duty up to a maximum of 600 gallons per year, or 900 gallons in the case of an organisation. Third, there is exemption from road tax.

The average total annualised value of these benefits is estimated at approximately €5,500 per claimant. ln the year of purchase of a car a claimant receives benefits relating to the purchase of the car, fuel relief and road tax, and in the other years the benefits received are fuel relief and road tax.

ln terms of the overall scale and scope of the scheme, the most recent data available from the Revenue show that the total number of claimants in the system in 2005 is around 9,500, made up of approximately 3,750 drivers and 5,750 passengers. The total cost of the scheme excluding road tax in 2005 was €49.5 million. When road tax is included the total cost is estimated to be over €56 million. Given the generosity of the scheme, strict medical criteria are set down to qualify for it. The scheme is not open to all people with a disability, only to people with certain serious physical disabilities. The medical eligibility criteria for the scheme is set out in legislation. Time does not permit me to go into detail in this regard but Deputy Crawford can read the information in the written reply which I will make available.

It is a fundamental requirement for admission to the scheme that the applicant meets the specified medical criteria and is in possession of a primary medical certificate to that effect. As the Deputy may be aware, a special interdepartmental group reviewed the operation of the disabled drivers' scheme. The group's terms of reference were to examine the operation of the existing scheme, including the difficulties experienced by the various groups and individuals involved with it, and to consider the feasibility of alternative schemes with a view to assisting the Minister for Finance in determining the future direction of the scheme.

The group's report, which was published on the Department of Finance's website in July 2004, sets out in detail the genesis and development of the scheme. It examines the current benefits, the qualifying medical criteria, the Exchequer costs, the relationship with other schemes and similar schemes in other countries. The report also makes a number of recommendations, both immediate and long-term, referring, respectively, to the operation of the appeals process and options for the future development of the scheme.

In respect of the long-term recommendations, which included the qualifying disability criteria, given the scale and scope of the scheme, further changes can only be made after careful consideration. The issues raised in the interdepartmental review group report are complex. Fundamental questions were raised. The Government decided that the Minister for Finance would consider the recommendations contained in the report of the interdepartmental review group in the context of the annual budgetary process. I have taken note of the specific issues raised by Deputy Crawford and will bring them to the attention of the Minister.

Comments

No comments

Log in or join to post a public comment.