Dáil debates

Wednesday, 20 November 2019

Finance Bill 2019: Report Stage (Resumed)

 

6:50 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I heard most of the Minister’s response. We discussed these issues on Committee Stage. These amendments relate to both the diesel rebate scheme and the call for a similar scheme for agricultural contractors. Regarding the diesel rebate scheme, I understand the objective of what was provided for in the budget and set out in the Finance Bill was to provide some additional relief to the haulage industry, taking account of the increased burden of the carbon tax. However, there are concerns within the industry that it will not meet that objective and that it will not provide further relief. As the Minister will know, the request that was made, which we discussed earlier in the process, was that the threshold be reduced to €1, above which the rebate would kick in and that the rebate would be increased to over 9 cent. I am interested to know whether the Department has done an assessment of what has been proposed. Is the Minister satisfied it will provide extra relief? Those who operate this scheme and who have benefited from it so far have raised serious questions about that. It is a technical calculation in the way that it depends on the price of fuel and so on.

Amendment No. 21 pertains to the request for a similar rebate scheme for agricultural contractors. The point that can be made, which we discussed on Committee Stage, is that the most efficient way for many farmers to carry out many of the high-volume usage of marked gas oil tasks is through agricultural contractors who have the best and most efficient machinery. They are able to make the necessary investment to stay up to date with the most environmentally friendly and the most operationally efficient equipment but there is not a similar rebate scheme for them. If they have to pay additional carbon tax, then, as night follows day, that will be passed on to the farmer and it will increase the cost of the various services provided by those contractors for the farmers. That is the concern. The argument being made is that the same issues and principles apply for those contractors as apply for the haulage industry. If the Minister is not prepared to move on it in this Finance Bill, it is an issue he should examine and perhaps commit to preparing a paper or report to examine the feasibility of introducing such a scheme for contractors working in this space.

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