Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank Deputy McGrath. The road haulage industry suffered during the recession, particularly due to the downturn in the construction sector.  The Government recognised the challenges facing the sector and announced the fuel duty rebate for hauliers in 2012, which could result in savings of up to €70 million per annum for the haulage sector. The number of road haulage vehicles in Ireland has been steadily increasing since 2013 and now stands at 16,799. This is an increase of more than 2,000 vehicles since 2012.  Continued economic recovery will see this figure continue to increase.

In recognition of the challenges facing the haulage sector, the Minister for Finance committed in November 2014 to reducing the motor tax rates for heavy goods vehicles, HGVs, of 12 tonnes or more in the approaching budget, with a tapering of the reduction for vehicles below a certain level. An interdepartmental group has carried out a review of the current commercial motor tax regime and consulted with hauliers and other stakeholders.  The report is being submitted to me, the Minister for Finance and the Minister for the Environment, Community and Local Government for joint consideration.  Once agreement is reached, the Minister for Finance will decide on the best way to respond to the needs described by Deputy McGrath.

The UK HGV road user levy was introduced in 2014.  The Government lobbied actively against the application of the charge to Northern Ireland, in co-operation, I must say, with Stormont Ministers.  Unfortunately, the UK Minister for Transport chose to give only very minor exemptions to Northern Ireland from the road user charge.  My officials are monitoring the impact of the road user charge on cross-Border traffic.

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