Dáil debates

Wednesday, 25 April 2012

Private Members' Business. Motorist Emergency Relief Bill 2012: Second Stage (Resumed)

 

8:00 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)

I commend my party colleague, Deputy Dooley, on his introduction of this motion, which deals with something that is on the tips of many people's tongues across the country - the rising cost of motor fuel and the difficulties this is creating for many people on a daily basis. Back in January 2009, petrol and diesel cost around 95 cent per litre, but now they can cost anything from €1.60 to €1.70, depending on what part of the country one is in. In this time we have seen people's economic circumstances deteriorate significantly. Their incomes have gone down and charges have increased, and far fewer people are now in employment, unfortunately, than in the past.

The Government needs to take a more active role in managing fuel prices. The suggestion in the Bill that we move to a system under which the excise duty applied to fuel is reviewed every three months, as opposed to every year, is appropriate. It is important that the Minister and his Cabinet colleagues show they are willing to take some action on this issue, even if only to give an indication to the public that they understand the situation they are in and the pain this is causing.

There certainly would be a cost associated with such a measure. The total estimated cost is €145 million. I would be interested to hear, in the Minister's closing comments, how he can reconcile his attitude this week about what will happen to the money that motorists save from a reduction in excise duty with his position on the same issue last week. Last week, he said that if the money was not spent at the petrol pumps it would be spent somewhere else, and therefore it would not represent a cost to the Exchequer, but this week he is refusing to accept that this is the case.

As my colleague Deputy Collins mentioned, people are now travelling less and curtailing the journeys they take. The revenue that many in the fuel industry are taking in remains similar to its previous values, although the volume has been decreasing. If the Minister were to take a stance and back a move such as we are suggesting, the revenue lost to the State might be less than expected. Considering the cost of fuel has increased by 75% in a little over three years, the base price of fuel is still not at an all-time high. It would be wise for the Minister to take a proactive approach to managing the cost of fuel.

I also ask the Minister to consider seriously the proposals put forward by the Irish haulage industry, whose representatives have met with the Minister on a number of occasions recently. The proposals to alleviate the pressure on the industry are sensible. Because fuel prices are a basic cost for hauliers, they, more than anyone, are being crippled by high fuel prices. Many haulage companies are put to the pin of their collar. It is important that the Minister consider these proposals on a targeted basis and try to come up with a solution that might alleviate the pressure on hauliers and ensure some of them stay in business during this difficult period.

Some movement by the Minister in terms of managing the revenue take from fuel would also be helpful in encouraging people to take domestic holidays and travel around the country. Because air travel continues to be cheap, it can cost as much to travel to another part of Ireland as to fly abroad.

I ask the Minister to give serious consideration to this Bill and to monitor actively and to manage fuel prices. The Government needs to take some control of the situation.

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