Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Deputy O'Connor for asking about the supports available for private bus and coach operators during this wartime period which has led to elevated fuel prices. I am answering this question on behalf of my colleague, the Minister, Deputy Ryan.

I understand the Deputy's question relates specifically to the possible provision of fuel supports to the bus and coach sector similar to those recently introduced for hauliers. As the House is aware, a whole-of-government approach is being adopted in regard to the Ukrainian crisis. I am pleased to advise that a high-level group has been established in the Department of Transport to monitor and respond, as appropriate, to the crisis and its impact on the transport sector. This group is informed by other Departments, agencies and transport stakeholders and seek to ensure a co-ordinated response to the evolving situation.

As part of this process, contingency plans in the Department and across all agencies are being reviewed and refreshed, where necessary, in response to the potential impacts on the transport sector, including those related to fuel costs. As Deputies will be aware, on 9 March the Minister for Finance announced a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil. Excise duty on petrol was reduced by 20 cent per litre and by 15 cent per litre of diesel, with these reductions to remain in place until 31 August 2022. This measure was introduced to help ease the burden on all citizens and businesses across the economy.

Subsequently, on 15 March the Government approved an emergency support measure for licensed hauliers in order to address the cost pressures arising from current high fuel prices. The support is targeted.

A temporary grant scheme will provide a payment of €100 per week for each heavy goods vehicle over 3.5 tonnes as listed on a road haulage operator's licence. The scheme will operate for a period of eight weeks and will be reviewed thereafter. The estimated cost to the State of the temporary response to these extraordinary circumstances is €18 million.

In responding to the Deputy's question, I wish to be clear that licensed bus and coach operators are an integral part of the overall public transport system, particularly in areas that are not covered by existing public service bus and rail services. In recognition of the important role of these operators throughout the Covid-19 pandemic, the Government has provided temporary financial supports for certain licensed commercial services with a view to protecting capacity across the public transport sector throughout the crisis. This temporary support was initially introduced for a period of six months in June 2020. However, owing to the continued impact of Covid-19 on passenger numbers and the associated drop in fare revenue, the supports have been extended on several occasions and more than €60 million has been provided to the sector to date under these schemes. In acknowledgement of the continuing difficulties facing the sector, I am pleased to inform the Deputy that the Minister, Deputy Ryan, recently approved an extension of the supports for a further three months, until 30 June 2022.

As the Deputy is aware, fuel costs have increased substantially since the commencement of the scheme in June 2020. I can confirm that the NTA has funded the operators for actual fuel costs throughout this period and will continue to do so throughout the extension of the scheme. Moreover, to ensure the continued operation of public transport service in rural areas, the NTA recently provided an additional level of subvention to support Local Link operators in the delivery of these services. These supports are provided to operators who are on fixed-rate contracts and therefore receiving no further increases to their based contracted rates. The funding has currently been provided to cover the costs for the first quarter of 2022 and this is a once-off payment initially. The situation will be monitored on an ongoing basis.

See this speech in context