Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I am glad the Deputy has acknowledged the great success of electric vehicles in general, even though he has specific, interesting criticisms about the way it is operating.

To give some background on the issue for the benefit of the House, this scheme was developed through the low emission vehicle taskforce, an interdepartmental group which aims to accelerate the take-up of low-carbon technologies in the road transport sector, and forms part of a wider suite of incentives aimed at supporting the national transition towards lower emitting vehicles. The reduced tolling regime was introduced to encourage private car commuters who regularly use tolled roads to consider switching to electric vehicles. It is estimated that there are approximately 400,000 heavy toll users in Ireland, and so reduced tolls act as a meaningful incentive for a large number of vehicle owners. I was happy to announce the launch of the scheme in July 2018, which is administered by TII on behalf of my Department. Under the scheme, battery electric vehicles and plug-in hybrid electric vehicles qualify for 50% and 25% toll reduction respectively, up to a maximum annual threshold of €500 for private vehicles and €1,000 for commercial vehicles. Greater off-peak reductions also apply to the M50 toll.

Information for electric vehicle owners on the simple and straightforward registration process is available online through the TII website and at eToll.ie. Vehicles participating in the scheme must be registered and approved by one of four toll service providers. All eligible vehicles require a toll tag to avail of the scheme. Since its introduction the electric vehicle toll scheme has proven very successful, with over 52% of all electric vehicles in the national fleet registered to avail of the incentive. That amounts to over 4,000 successful registrations. Based on the significant increase in electric vehicle sales in 2019, I expect the numbers availing of the incentive to rise further.

I am aware of a media article to which the Deputy referred and the concerns regarding the operation of the scheme. As advised in my recent response to a parliamentary question from Deputy Munster on Tuesday last, I understand that, to date, neither TII nor the individual toll service providers who operate the scheme have received any information, concerns or complaints from customers regarding the operation of scheme. If any electric vehicle owner is having issues registering for the scheme I would encourage them to contact TII directly and the matter will be investigated as a matter of urgency.

Maintaining the success of the scheme is important as we continue to encourage more and more people to switch to electric vehicles. As such, TII has already begun a review of the scheme. The electric vehicle customer experience will, of course, form an integral part of this review process. The transition to electric vehicles is fundamental to decarbonising the private car fleet. As such a generous range of incentives have been put in place to encourage their uptake. Incentives include purchase grants, vehicle road tax, VRT, relief, favourable benefit-in-kind rates, low motor tax and an extensive public charging network.

I am pleased to see the positive impact that such incentives are having on uptake rates. We are beginning to see a marked increase in electric vehicle sales, to which the Deputy referred. In January alone, a total of 811 new full battery electric vehicles were registered. This compares with 104 vehicles for the same period last year. Similarly, plug-in hybrid sales are increasing, with 301 new vehicles sold in January compared with 109 last year. Electric vehicles accounted for over 3.4% of all new car sales to date in 2019. This upward trend is one I hope to see continue as EVs become a common alternative to conventionally fuelled cars.

In the short term incentives, including the reduced tolling regime we are speaking of today, play a vital role in guiding consumer choice towards lower emitting alternatives. This is a necessary step change as we move towards decarbonising the transport sector.

See this speech in context