Pádraic McCormack (Galway West, Fine Gael)
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Since the early 1990s many voluntary organisations have made representations to the Department of Finance regarding the Disabled Drivers (Taxation Concessions) Regulations 1989. The Minister for Finance established a review group in 1997 to take submissions and report to him on the matter instead of making a decision on these representations. The scandal is that seven years later the report has not been published.

I have tabled several parliamentary questions on this matter. The group reported to the Minister in October 2002, but a year and a half later he still has not published the report or made a decision on its recommendations. He has given no indication about what he will do in terms of the recommendations. I have raised this issue in letters to the Minister and through parliamentary questions on many occasions over the past five or six years. I received another useless reply from the Minister today, which stated:

I wish to acknowledge receipt of your recent letter regarding the disabled drivers' and disabled passengers' tax concessions scheme. I will be in contact with you again on the matter as soon as possible.

The report of the Commission on the Status of People with Disabilities, entitled A Strategy for Equality, was published in 1998 and was endorsed by all political parties. It welcomed the Finance Act 1996 amendment, which reduced the cost of motor vehicle adaptation from 20% to 10% of the motor vehicle for disabled persons. The commission further recommended that the percentage should be reduced to zero over the next three years and it acknowledged that a car was essential for many people with disabilities. Eight years later, nothing has happened in that regard.

I refer to adapting the car for a disabled driver or passenger. To qualify for the tax rebate the disabled car owner must spend at least 10% of the net cost of the car on adapting the vehicle. This amounts to approximately €1,600 for an average car. The regulation results in an unnecessary rip-off of disabled people. Practically all of them can enter or exit a motor vehicle with limited physical assistance through the use of a simple bridge board supplied by health boards, thus avoiding the necessity of installing a swivel seat. However, if they are to qualify for the remission of VRT and the repayment of VAT on the cost of the car, the cost of adaptation must be at least 10% of the base value of the motor vehicle and because of their limited income and circumstances, disabled people cannot afford this if they do not qualify for the tax rebate.

The criteria for qualification for the tax concession should be based on strict medical certification of an applicant's degree of disability and on disability alone. They then would not be required to incur the cost of adaptation, which is 10% of the base value of a motor vehicle. That bears no relationship to the disability nor is it of assistance to the disabled passenger. I appeal to the Minister of State to ask the Minister for Finance to publish the report and outline whether he will adopt the necessary recommendations in it.

The disabled passenger or his spouse, who might be a full-time carer, is issued with a free travel pass, courtesy of the Department of Social and Family Affairs, even though the Department knows a disabled passenger cannot avail of bus services because they are not wheelchair accessible, and they do not exist in some rural areas. They are entitled to the same privileges as able-bodied people but the only option they have is to convert a motor vehicle.

I appeal to the Minister to publish the report and acknowledge whether he will implement the recommendations and abolish this unnecessary and useless provision that 10% of the net cost of a car must be expended on adapting it for a disabled passenger or driver.

Tim O'Malley (Limerick East, Progressive Democrats)
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This scheme, which originated in 1968, provides valuable tax concessions for disabled drivers and disabled passengers. Over time the benefits were extended and the scheme was put on a statutory basis. The scheme is open to persons, drivers and passengers, with disabilities who have obtained a primary medical certificate. To qualify for a medical certificate, the person must be severely and permanently disabled and meet one or more of a number of specific medical criteria relating to the use of upper and lower limbs.

Possession of a primary medical certificate entitles a person to benefit from the following reliefs: remission or repayment of vehicle registration tax, VRT, and a refund of value-added tax, VAT, on the purchase of a vehicle; a refund of VAT on the cost of adaptation of a vehicle up to a maximum of €9,523 for a disabled driver and €15,872 for a disabled passenger; repayment of excise duty on motor fuel used in the vehicle for the transport of the disabled person, subject to an annual maximum of 600 gallons — this works out at approximately €1,016 per annum at current excise rates; and exemption from the payment of annual road tax payable to local authorities. Annual ongoing relief also includes the possibility of changing a car every two years. The same tax reliefs are also available to qualifying organisations for qualifying activities, that is, the transport of those disabled who are covered by the scheme.

The cost of the scheme has increased significantly in recent years. It amounted to approximately €36 million in 2003, compared with just under €6.5 million in 1996. It is estimated that 8,750 people with disabilities participate in the scheme. The average claim for VRT and VAT relief amounts to approximately €5,250. This is what it is worth, on average, on an annualised basis to an individual beneficiary.

The Minister for Finance has been informed that up to 360,000 persons in Ireland could be regarded as disabled. These include persons with medical conditions other than those covered by the scheme and those with medical conditions covered by the scheme. The substantial tax benefits of the disabled drivers and disabled passengers scheme make for considerable interest in, and desire to be admitted to, the scheme.

The scheme was reviewed by an interdepartmental review group chaired by an official from the Department of Justice, Equality and Law Reform. In addition to representatives from that Department, the group comprised representatives of the Departments of Finance, Health and Children and Social and Family Affairs and the Office of the Revenue Commissioners. The group was convened to review the operation of the scheme following a meeting in April 1998 between the Ministers for Health and Children and Finance and the Minister of State to discuss problems with the operation of the scheme. The group examined all aspects of the scheme, including the qualifying medical criteria. A copy of the report of the group, containing recommendations for changes to the scheme, was received by the Department of Finance in September 2002.

The Deputy will appreciate that the report of the review group is complex. As part of its deliberations, the group heard oral submissions over a period of five and a half days. In addition, the group received more than 260 written submissions from interested parties. Many factors have been taken into account by the review group in the formulation of this report. The Minister for Finance is considering the issues raised in the context of the objectives to be met and the best use of resources. The issues are difficult and many different, and some conflicting, viewpoints have to be taken into account. It is envisaged the report will be published once the deliberative process is fully completed.

The great interest shown by various groups in seeking access to the scheme is understandable. The benefits are significant on an individual basis. Nevertheless, it is important we review how the scheme can be operated in a fair, focused and manageable manner within available resources for those whom it can most effectively assist. I trust that the House shares this goal.

Pádraic McCormack (Galway West, Fine Gael)
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Why is it taking so long?