Michael Noonan (Limerick City, Fine Gael)

It would be a mistake to time-limit discussions of a working group so I will not put a time limit on it. However, there appears to have been a good exchange of views to date as well as serious discussions on the proposals made by the Irish Road Haulage Association. Irish hauliers are impacted in the same way as those throughout Europe. Diesel and petrol prices have gone up throughout Europe. In comparison with our nearest neighbours in the United Kingdom the imposition of excise on diesel and petrol in Ireland is significantly lower. VAT on diesel and gas can be reclaimed while VAT on petrol cannot be reclaimed by hauliers but most of the lorries use diesel. The option to reclaim is available. The argument that an increase in the VAT rate is having an added imposition is questionable. Perhaps there is an imposition on cash flow but not on the bottom line because those involved can reclaim it.

It is a competitive business. At the same time there is a good deal of extra business because of the increase in exports. There is a good deal of hauling to the ports and into Europe but it is competitive business. Those who require the services of hauliers have cut margins because it is so competitive. The talks are ongoing.

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