Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

The current spike in energy prices arises principally from the global recovery from the Covid-19 pandemic. It has implications across the economy. With regard to the impact on transport, the Government will continue to monitor impacts on trade and key supply chains as it has done through the challenges arising from Brexit and the pandemic.

Road hauliers are currently supported in the cost of diesel through the diesel rebate scheme, introduced in 2013. In budget 2020, in recognition of the challenging environment the haulage industry faced at that time with regard to the prospect of a disorderly Brexit, the scheme was enhanced to the extent that when the retail price of auto diesel is over €1.07, the marginal rate of compensation increases to 60% of the excise paid up to a maximum repayment rate of 7.5 cent per litre when the price of auto diesel is €1.16 or over. In recognition of the vital role the haulage sector plays in the economy, the 2020 enhancement has been maintained since. It is worth noting also that businesses registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.

The Minister, Deputy Ryan, and I met with representatives of the Irish Road Haulage Association, IRHA, on 10 December to discuss a range of issues, including fuel prices, decarbonisation of the heavy goods vehicle, HGV, sector and skills issues, including the HGV driver shortage. At the meeting with IRHA, the Minister and I agreed to consider a proposal to expand the relief available to hauliers under the diesel rebate scheme, but with a link to the phasing out of older, more polluting vehicles and an overall reduction in emissions from the sector. Details of that proposal are to be submitted by the IRHA to the Department. The meeting was constructive. We will meet the IRHA again in the new year.

On supports for taxi drivers, the vast majority of measures we have taken in support of the taxi industry from the start of the pandemic remain in place.

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