Ruairi Ó Murchú (Louth, Sinn Fein)
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93. To ask the Minister for Transport, Tourism and Sport the status of his engagements with truckers in relation to the rising cost of fuel which is pushing businesses to the brink; and if he will make a statement on the matter. [19652/22]

Ruairi Ó Murchú (Louth, Sinn Fein)
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I want to ask about the Minister of State's engagement with the hauliers. The rising cost of fuel is impacting hugely on all of us but we are talking about businesses that are on the brink. I would like to have a statement in regard to what has been done for them but, beyond that, what are the plans to ensure we keep an absolutely necessary cohort in the economy up and running?

Hildegarde Naughton (Galway West, Fine Gael)
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I thank the Deputy for the question. The European and global oil markets are currently volatile due to the conflict in Ukraine exacerbating pre-existing market shortages, primarily of diesel. This has caused a spike in the price of crude and of refined products on the retail market.

The Government is fully aware of the significant financial impact that rising fuel prices is having on the haulage sector and has been engaged with sectoral representatives in that regard. The Minister, Deputy Eamon Ryan, and I met the IRHA on 10 December 2021 and again on 10 February 2022 to discuss the issue, as well as the need for the heavy goods vehicle sector to make progress towards decarbonisation. With the outbreak of the conflict in Ukraine however, fuel prices escalated further. We met the IRHA again in that context on 9 March last. Recognising that this sudden increase in fuel price was a problem in particular for the licensed haulage sector, on 15 March 2022, the Minister, Deputy Ryan, and I proposed to the Government an emergency support measure, namely, the licensed haulage emergency support scheme. The scheme will provide support of €100 per week for eight weeks for each eligible heavy goods vehicle, HGV, authorised on the licence of a road haulage operator as of 11 March 2022. The scheme is being administered by the Department of Transport.

In addition, the Government has provided for an excise duty reduction on mineral oil taxes with effect from 10 March. This saw a 20 cent reduction in the excise rate for petrol and a 15 cent reduction on auto diesel. These measures were VAT-inclusive and were proposed to last until 31 August. On 11 April, the Government extended the period of the reduced rates out to budget day. This measure is a benefit to all citizens and businesses to mitigate the impact of recent fuel price increases. However, it should be noted that the causes of these increases are not within the control of the Government and are being directly influenced by external factors, including the Ukraine crisis.

Ruairi Ó Murchú (Louth, Sinn Fein)
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We all accept there are factors beyond the control of the Government. We came out of Covid and we had the issues of Brexit, which impacted on the supply chain and are impacting us all greatly, and this was then followed by a huge global crisis, in particular a European crisis, with the war in Ukraine. With regard to those factors the Government has control over, are we looking at an extension of the €100 payment? I know many hauliers have spoken about the fact they do not believe the diesel rebate scheme is fit for purpose. Is that going to be looked at? We are then back to the question we have all had over many months in the House, which concerns the possibility of room for movement in regard to VAT specifically in regard to hauliers and fuel.

Hildegarde Naughton (Galway West, Fine Gael)
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We all accept there are external factors here. The Government can do so much in regard to cushioning people from the rising cost of fuel but there is also a strong recognition from the Government of the importance of the haulage sector, in particular for our essential supply chain. That is why I, the Minister, Deputy Eamon Ryan, and the Government moved in regard to this scheme, which is being processed at the moment and the deadline for that is 29 April. We also have the diesel rebate scheme, which was introduced back in 2013, extended by the Minister for Finance and then, in 2020, due to concerns around Brexit, extended further. This is going to be constantly reviewed. I and the Minister, Deputy Eamon Ryan, will continue our engagement with the haulage sector because we know how vital it is in regard to the supply of essential goods across the country and beyond.

Ruairi Ó Murchú (Louth, Sinn Fein)
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The Minister of State said it herself. It is about ensuring we can move the essential goods we require because we need to keep the show on the road. I will go back to the point that it is the future plans. Are we looking at extending the €100 payment and what other factors are we looking at? Are we going to properly look at the diesel rebate scheme and update it? On the wider question of VAT, is there any room for manoeuvre? Beyond that, if the Minister of State has time to deal with this, are we any further on in regard to resolving the issue of work visas for people who came here looking to work as truck drivers, given there were ongoing issues?

Hildegarde Naughton (Galway West, Fine Gael)
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We have to acknowledge the work that is ongoing within the Department in regard to the current €100 per week scheme. Those in the haulage sector are applying for that. It is going to run for an eight-week period and it will be reviewed thereafter. As I said, we will continue our engagement, as we have done, with the Irish Road Haulage Association and the wider sector in regard to the needs around logistics and the supply chain, as well as working on the ten-year road haulage strategy. We are also working with the Department of Social Protection around recruitment and with the Department of Enterprise, Trade and Employment on work permits. Significant work has happened around the work permits and also in regard to the diesel rebate scheme. As I said in my earlier contribution, there have been reductions in excise that will not only benefit road hauliers but wider business as well in regard to the rising cost of living.