Dáil debates

Tuesday, 18 February 2014

Ceisteanna - Questions - Priority Questions

Haulage Industry Regulation

2:00 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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89. To ask the Minister for Transport, Tourism and Sport if he is concerned at the introduction of a heavy goods vehicle road user levy in the United Kingdom which will have a significant impact on Irish hauliers; if he has spoken to his British counterpart regarding this levy; his plans to apply a similar levy here on foreign hauliers; and if he will make a statement on the matter. [8056/14]

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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The Minister is aware that the authorities in the United Kingdom intend to introduce a charge for heavy goods vehicles travelling from outside the state and they have managed to find a methodology for doing so in a manner that does not breach European Union competition law. I understand the Minister's Department has been aware of this for the past three years. He will be aware also that the impact on owners of heavy goods vehicles in this State will be significant. The expectation is that it will render it quite difficult to compete with trucks travelling from the North of Ireland, and particularly the UK.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Under EU legislation, it is open to any member state to introduce road user charges if it wishes. Road charging is an important option for the funding of roads infrastructure, particularly in the context of ensuring that out-of-state hauliers contribute to the costs of a country’s road infrastructure. The new UK road user levy introduces a charge on all HGVs weighing 12 tonnes or more for use of UK roads, including those in Northern Ireland. This levy is planned to start on 1 April 2014.

I have expressed my concerns about the impact this levy will have on Irish hauliers to my UK and Northern Ireland colleagues. Furthermore, I have sought exemptions for some roads in Northern Ireland to reduce the impact on Irish hauliers. The issue has also been discussed at transport sectoral meetings of the North-South Ministerial Council in Armagh.  I will be meeting Mr. Stephen Hammond, MP, Parliamentary Under-Secretary of State for Transport, on Thursday and I intend to raise this issue directly with him again.

Following consultation with the Minister for the Environment, Community and Local Government, I have established a cross-departmental working group to examine the feasibility of introducing a road charging scheme for HGVs in the medium term.  The group began its work in January and is due to report by the middle of this year. The development of a road charging scheme for HGVs is one of my priorities for 2014. Obviously, the introduction of any such regime raises a number of issues and will require input from a wide variety of Departments and agencies.  These issues include the Exchequer impact of a road charging scheme, how it would work, the effect it would have on imports and exports, the technology involved in such a system, compliance with European legislation and how the system would be enforced.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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I thank the Minister but he has not given me any confidence that he will find a solution or a resolution that will meet the concerns and the needs of the owners of heavy goods vehicles. He is aware that it is approximately €5,200 cheaper to operate the same heavy goods vehicle in the North of Ireland as opposed to the South. The Irish State has chosen not to police the visiting of Northern trucks in the State in a manner that would make it difficult for them to compete effectively against their Southern counterparts.

Trucks travelling from County Donegal to Dublin on a daily basis will incur this charge. I am interested to find out the routes that the Minister has sought to exclude from charges. This initiative will be helpful if it is successful.

He also indicated that he has discussed the matter with his counterparts in the North and the UK. Has he taken the opportunity to have a conversation with the leader of Sinn Féin in this House, Deputy Adams, given that he holds significant sway in the Administration in the Northern part of this country? Perhaps a discussion between Deputy Adams and the Minister would help to resolve this matter. I have every expectation that Deputy Adams and Sinn Féin will support the Minister in addressing the concerns of hauliers on this side of the Border. If he has not had that conversation, why has he not done so and will he agree to enter discussions at the earliest opportunity?

2:05 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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A number of issues should be borne in mind. At the end of last year, 307,849 goods vehicles were registered for tax in Ireland but only 9,500 of these were heavier than 12 tonnes. This charge will only apply to approximately 3% of Irish registered goods vehicles, therefore, although that is still a significant number. Britain has decided to introduce a relatively old-fashioned and time based system whereby out-of-state hauliers purchase tags on a daily basis. Most countries are opting for a distance based system, with some using GPS to measure distances travelled. We have to decide which option we want to take. The countries which have introduced charges generally have a considerable amount of through traffic, such as Austria. These countries want to capture revenue from hauliers passing through. That issue does not really arise for us because most hauliers in Ireland are delivering here. Furthermore, under European law we cannot levy tolls and road charges at the same time. With two minor exceptions, there are no tolls in the United Kingdom but Ireland levies tolls. That must also be addressed.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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The Minister may not have had time to answer my question regarding whether he has had an opportunity to discuss with Deputy Adams the expected approach of the Northern Ireland Assembly to the charge. If he has had such discussions, perhaps he can outline their nature and, if he has not, I ask him to explain why he has not engaged.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We have more or less agreed that two roads straddling the Border will be exempt. I would also like to exempt the A5 for exactly the reasons identified by Deputy Dooley, namely, because through traffic from the northern part of County Donegal travels through Northern Ireland along that road. I will be raising that issue with my UK counterpart in London on Thursday. I have not discussed the issue with the leader of Sinn Féin but I have raised it with the Northern Ireland Minister for Regional Development, Danny Kennedy, MLA, and the Minister for the Environment, Mark H. Durkan, MLA. As they are the line Ministers for transport and the environment, it makes sense that I have discussions with them rather than a Member of this House. However, it is worth noting this is a UK competence and, irrespective of how much sympathy the Northern Ireland Executive may have for us, this decision is being made in London on a UK basis. I am not sure of the extent to which Deputy Adams has the ears of Conservative Party Ministers in London.