Batt O'Keeffe (Cork North West, Fianna Fail)

The Fuel Duty Rebate Scheme (Provisions of Section 99 (1) Finance Act, 1999) allowed for a rebate in respect of the excise duty paid on fuel used by private contractors on delivering school transport services. This scheme which was processed by the Revenue Commissioners, ceased on 31st October 2008 in accordance with the EU Energy Tax Directive.

The proposed compensatory allowance had not come into operation since the fuel rebate scheme ceased. Provision of €2million had been made in the 2009 Estimate to meet the estimated cost of the compensatory allowance. The school transport estimate has now been reduced, however, by €2 million to €192 million in the supplementary budget.

Bus Eireann was informed on 7th April that due to the very difficult fiscal conditions, it is not possible for the Department to approve any increase towards compensating private operators on contract to Bus Eireann for any loss of income arising from the termination of the fuel rebate scheme.

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