Noel Rock (Dublin North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

New figures show that electric vehicle registrations increased significantly in January, with a total of 811 cars sold. That represents a massive increase of 680% on January 2018. The Society of the Irish Motor Industry, SIMI, said that the January figure is more than the total of sales for 2017, and in fact is over 60% of the total for the whole of last year. It is quite clear that this sector is growing, not only internationally but domestically. It is equally clear that, in terms of personal vehicle usage, electric vehicles are the way of the future. I am sure the Minister, and indeed the House, would agree with that statement. However, it is equally clear, based on recent reports and discussions I have had with people, that there is some concern around some of the incentives being put in place. For example, the tolling discounts which were put in place to incentivise the uptake of electric vehicles, have lead to some confusion among existing owners of electric vehicles. Indeed, there is a complete lack of knowledge among perspective purchasers of electric vehicles.

How exactly is this scheme being advertised? A journalist from The Irish Times contacted Transport Infrastructure Ireland, TII, to get some clarity around how this scheme operates, only to be given incorrect information. While that is itself is not a problem - people make mistakes and we cannot necessarily blame one individual - it goes to show that there is a lack of clarity and consistency around the application of this scheme. The story, from Mr. Neill Briscoe, reads:

[Another] issue, possibly [more] worryingly, seems to be confusion in the ranks over exactly how the discount system should work. A representative from the TII told The Irish Timesthat: "Please note that if people were travelling during peak hours there were no discounts".

That, however, according to the journalist and the regulations, is incorrect. The Department's official rules for the scheme say: "At peak times the discount is reduced from 75% to 50% on the M50, and from 50% to 25% for petrol hybrid electric vehicles". Consequently, there is a discount at peak times, despite TII saying otherwise.

If TII does not know how this operates, how can the public be expected to know? Is this issue recognised within the Minister's Department? Does the Department have a plan to expand this scheme or to clarify it? It is quite clear that this is the way of the future, and that the number of users of this technology is going to go up and up. Some clarity and consistency on this matter would be most welcome. I have spoken to a number of people within the community, and the good news is that the majority - some 60% - of the more than 150 users who were polled on this are happy with the scheme. However, there is a significant minority who are confused by the inconsistencies of the scheme. There are currently five different toll tag operators who apply discounts. Some apply them in a live manner, at the moment a car passes through the tolls. Some apply them by way of a backlog, rebating moneys monthly based on arrears accrued. It is clear that among the toll tag operators, TII and the Department there is a complete lack of clarity and consistency. I would like to hear the Minister's views on this, his plans for the scheme for the future and his own feeling about electric vehicles generally.

Shane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

I am glad the Deputy has acknowledged the great success of electric vehicles in general, even though he has specific, interesting criticisms about the way it is operating.

To give some background on the issue for the benefit of the House, this scheme was developed through the low emission vehicle taskforce, an interdepartmental group which aims to accelerate the take-up of low-carbon technologies in the road transport sector, and forms part of a wider suite of incentives aimed at supporting the national transition towards lower emitting vehicles. The reduced tolling regime was introduced to encourage private car commuters who regularly use tolled roads to consider switching to electric vehicles. It is estimated that there are approximately 400,000 heavy toll users in Ireland, and so reduced tolls act as a meaningful incentive for a large number of vehicle owners. I was happy to announce the launch of the scheme in July 2018, which is administered by TII on behalf of my Department. Under the scheme, battery electric vehicles and plug-in hybrid electric vehicles qualify for 50% and 25% toll reduction respectively, up to a maximum annual threshold of €500 for private vehicles and €1,000 for commercial vehicles. Greater off-peak reductions also apply to the M50 toll.

Information for electric vehicle owners on the simple and straightforward registration process is available online through the TII website and at eToll.ie. Vehicles participating in the scheme must be registered and approved by one of four toll service providers. All eligible vehicles require a toll tag to avail of the scheme. Since its introduction the electric vehicle toll scheme has proven very successful, with over 52% of all electric vehicles in the national fleet registered to avail of the incentive. That amounts to over 4,000 successful registrations. Based on the significant increase in electric vehicle sales in 2019, I expect the numbers availing of the incentive to rise further.

I am aware of a media article to which the Deputy referred and the concerns regarding the operation of the scheme. As advised in my recent response to a parliamentary question from Deputy Munster on Tuesday last, I understand that, to date, neither TII nor the individual toll service providers who operate the scheme have received any information, concerns or complaints from customers regarding the operation of scheme. If any electric vehicle owner is having issues registering for the scheme I would encourage them to contact TII directly and the matter will be investigated as a matter of urgency.

Maintaining the success of the scheme is important as we continue to encourage more and more people to switch to electric vehicles. As such, TII has already begun a review of the scheme. The electric vehicle customer experience will, of course, form an integral part of this review process. The transition to electric vehicles is fundamental to decarbonising the private car fleet. As such a generous range of incentives have been put in place to encourage their uptake. Incentives include purchase grants, vehicle road tax, VRT, relief, favourable benefit-in-kind rates, low motor tax and an extensive public charging network.

I am pleased to see the positive impact that such incentives are having on uptake rates. We are beginning to see a marked increase in electric vehicle sales, to which the Deputy referred. In January alone, a total of 811 new full battery electric vehicles were registered. This compares with 104 vehicles for the same period last year. Similarly, plug-in hybrid sales are increasing, with 301 new vehicles sold in January compared with 109 last year. Electric vehicles accounted for over 3.4% of all new car sales to date in 2019. This upward trend is one I hope to see continue as EVs become a common alternative to conventionally fuelled cars.

In the short term incentives, including the reduced tolling regime we are speaking of today, play a vital role in guiding consumer choice towards lower emitting alternatives. This is a necessary step change as we move towards decarbonising the transport sector.

Noel Rock (Dublin North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his answer. One point that jumped out at me was his comment that, since its introduction, the electric vehicle toll scheme has proven "very successful" – those were the Minister's words – with over 52% of all electric vehicles in the national fleet registered to avail of the incentive. This is free money, an incentive, yet only 52% of the people who are early converters have applied to the scheme. Generally speaking, these people are well connected in a small tight-knit community. Only 52% or one in every two of them has registered for a scheme that is meant to incentivise the public at large to convert to electric vehicles, turn doubters into believers and get more people buying electric vehicles. Does the fact that only half of the existing owners of electric vehicles have converted not indicate, as I outlined in my original statement, that there is a clear issue with the clarity, consistency in applicability, effectiveness and usefulness of the scheme? It seems to be generating a potentially a large expense without doing what it sets out to do. People are converting to electric vehicles in greater numbers. However, as the Minister outlined, several challenges face us, especially in terms of charging infrastructure. Does he believe the scheme, in which only one in two existing vehicles owners participate, is operating as a true incentive?

Shane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for asking the question a second time. If I did not adequately respond the first time, I will repeat myself and add a little. I do not know the answer to Deputy Rock's question and nor does the Deputy as otherwise he would not be asking it.

Noel Rock (Dublin North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister is here to answer it.

Shane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

I put it to the Deputy that it is possible that the scheme is not being properly marketed, but it could also be inertia – I do not know.

Deputy Rock started by saying the scheme was not working property and read from an article in The Irish Times. The Deputy seems to disregard that those operating the scheme have received no complaints. Is it not strange that the operators of a scheme that is apparently not working have had no complaints from Transport Infrastructure Ireland? To date, neither TII nor the individual service providers who operate the scheme have received any information, concerns or complaints from customers regarding the operation of the scheme. If 48% of people who qualify are not applying, it could be inertia or it could be a matter of the scheme not being properly advertised. To respond to the possibility that the Deputy is right, I will convey his remarks to TII.