Mattie McGrath (Tipperary, Independent) | Oireachtas source

I move amendment No. 1:

In page 3, line 18, after “2023” to insert “and subsequent years”.

This is the first of our three amendments related to extending the temporary benefit-in-kind, BIK, arrangements beyond the end of this year. This would support drivers of company vehicles into 2024 and beyond, which is imperative. Many company fleets do not have the wherewithal to replace their cars with electric vehicles, EVs. Medium-sized companies, including wholesalers of confectionery or whatever, have a fleet of cars on the road with very skilled and safe drivers who do a lot of mileage. The benefit-in-kind scheme was of benefit to them. I know the Government wants to push everybody to move to EVs. With the downturn in the economy, coming out of the Covid pandemic and everything else, those small companies did not have the wherewithal to change their fleet to electric vehicles.

The Minister, as an accountant, will understand company law and how people make provision for write-downs, write-offs and changing their vehicles over a number of financial years. So, they would want to change. Amendment No. 1 states:

In page 3, line 18, after “2023” to insert “and subsequent years”

The phrase “and subsequent years” is very important because it goes forward and rolls over. If we just get it for bliain amháin in 2023, it will be no good for anyone. It is a help, but then the guillotine comes down on it.

Amendment No. 2 states:

In page 3, line 30, after “2023” to insert “and subsequent years”.

Amendment No. 3 states:

In page 4, line 15, after “2023” to insert “and subsequent years”

The Bill, as drafted, will only facilitate temporary change in the benefit-in-kind regime for petrol and diesel vehicles, which make up the majority of company cars for employees who have experienced higher income-tax liabilities since the start of 2023. The temporary measure, while welcome, only partly addresses the issue of relief for this year. The measure will see €10,000 to be applied to the original market value, OMV, of the cars in categories A to D, inclusive, to reduce the amount of benefit in kind payable. This is not applicable to cars in category E. In effect, this means that for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000. This treatment will also apply to vans and electric vehicles. For electric vehicles the OMV deduction of €10,000 will be in addition to the existing relief of €35,000 that is currently available for EVs, meaning that total relief for 2023 will be €45,000. That is a big difference from the €10,000. There are certainly huge incentives there for people to go electric.

One of my good friends, who talks to me about this, travels to such noted places as Kilgarvan. He passes through it and calls to different confectionery stores, not to mention any names, because we would be accused of promoting certain businesses. He goes to places like that and all over An Mumhan, five or six counties in Munster. The Minister and I along with the dogs in the street know that the charging points are not yet in place for these people to charge their vehicles who cover such huge distances. We are clearly putting the cart before the horse here. While these people are energetic and good employees, they are not able to push the vehicle with an electric motor inside it up and down hills and roads where they have no place to charge it when they run out of power. If the vehicle is hybrid, they have some chance but they have no chance with their fully electric vehicle. "Cad a dhéanfaimid feasta gan adhmad?" Cad a dhéanfaimid feasta gan solas? If there are no lights, they have no chance to plug in and charge anywhere, so they are being plugged out and switched off. Some companies now have trackers; they might not even work when the battery is dead.

This is really the Green tail wagging the Fianna Fáil-Fine Gael dog here, shaking the dog and putting the dog into a spin. We need to go back and muzzle the dog here, trim the tail, stop the shaking of the dog and live in the realpolitikand real-----

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