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

I thank the Deputy for raising the issues currently facing the transport sector and hauliers, in particular. The current spike in energy prices arises from the global recovery from the Covid-19 pandemic in conjunction with current international tensions and supply constraint issues. It is being witnessed across the European Union as well as many other regions. In order to mitigate the impact of fuel price increases for hauliers, the diesel rebate scheme offers a partial excise refund to qualifying operators.

In light of the challenges arising from Brexit and the uncertainty facing the sector, in budget 2020 the marginal rate of compensation at prices over €1.32, VAT inclusive, was doubled up to the maximum repayment rate of 7.5 cent per litre in recognition of the vital role of the haulage sector to the economy. In addition, businesses that are 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 the Irish Road Haulage Association, IRHA, on 10 December 2021 and again on 10 February 2022 to discuss the spike in fuel prices for hauliers and the need for the sector to make progress towards decarbonisation. Although no way forward was agreed at those meetings, discussions on these issues are ongoing at official level.

Similarly, the driver shortage is not a problem confined just to Ireland. It has been a growing issue across Europe and globally for several years. It is a multifaceted issue with a range of contributing factors, including the pandemic, which has clearly had a significant impact on many sectors.

In 2019, my Department established the national logistics and supply chain skills group, the key objective of which is to support the promotion of careers, skills development and sustainable employment in the logistics and supply chain sector. The group includes haulage and logistics sector industry representatives, education and training providers and all the relevant Departments. Last year, I asked the group to examine the HGV driver shortage.

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